By
Chimamanda U. Martha
April 25th, 2024
Lition has built a decentralized Ethreum-based platform to provide consumers with a reliable way to buy cheaper energy.
In the era of active urbanization, the issue of finding the most feasible and efficient sources of energy is remaining among the most pressing ones. While it is predicted that by 2050 approximately 60% of the world’s population will be living in urban areas, some cities are already working on the development of future green energy delivery solutions based on “smart grid” technology.
It is also expected that just in two years global spending on digital city technology will reach a mark of $400 billion, though in 2016 they amounted to $80 billion. Authorities from different corners of the world are joining forces with huge companies and growing startups to find the most appropriate solutions. One of such startups that are actively working with cities on this issue is Lition.
Lition Energy Market
Lition has been launched only this year but it has already managed to become a licensed energy supplier in Germany. Lition’s clients in 12 major cities, including Berlin, Hamburg and Munich have an opportunity to enjoy the benefits of its decentralized energy market.
The startup’s energy market is developed on the top of Ethereum blockchain. It is aimed at ensuring direct connection between consumers and energy producers of different sizes and offering its clients a possibility to find cheaper energy.
According to the data provided by the company, over 700 households from different cities of Germany are currently utilizing the decentralized Ethereum-based platform with a view to buy energy.
Lition’s Mission
While environmental sustainability and energy efficiency are viewed as the key priorities for smart cities, Lition is moving towards revolutionizing the global energy market. Following the main principle of blockchain, the project is trying to eliminate middlemen in the process of purchasing energy which also helps to save consumers expenses on power.
In the traditional market, households have an opportunity to buy energy only from intermediaries that in their turn have bought it from suppliers. It is believed that Lition’s scheme will help to save up to 20% of users’ expenses on energy and to increase suppliers’ income by one third.
According to the company’s CEO Richard Lohwasser, the energy market is suffering from too intensive influence of these multinational intermediaries. As a result, consumers practically do not have any choice which type of energy to use.
Commenting this issue, he also added:
“Green energy buyers never really know what they’re purchasing, because the systems are too complex and lack transparency. Even dirty coal-generated energy can be packaged as ‘green’ to a consumer, who never knows the provenance of their energy supply. Blockchain technology deals with all these issues, allowing consumers to buy energy from suppliers they trust. Just as important, smart meter technology allows consumers to take advantage of cheaper energy during off-peak times. These benefits put a consumer in the driver’s seat when it comes to energy consumption.”
Currently, the platform can be used only by consumers from Germany where it is licensed. Moreover, the company has faced with some problems caused by the peculiarities of Ethereum protocol but it is already actively working on improving the situation. Lition is also going to hold its own ICO to launch its private-public blockchain with enhanced capacities.