Blockchain tech is revolutionizing all aspects of life as we know it. Interestingly,this tech is also increasingly relevant in the Power sector. One platform that is driving progress in this sector is Lition.
Lition is an Ethereum blockchain based power project that has so far powered 700 homes. It is defined on its site as a state of the art protocol that allows blockchain applications to step out of their current niche into commercial mainstream development. It is a licensed energy supplier in Germany that aims to eliminate middlemen from the power business. Therefore, consumers will be able to connect directly with both large and small energy producers.
Ethereum blockchain Powers Lition
The startup rapidly entered the power business in Germany, connecting 10 cities to its current grid. Some of the connected cities include Hamburg, Munich and Berlin.
Lition is built on the Ethereum blockchain enabling it to easily track power from the source to the end user. The startup created a decentralized mobile phone application where users can connect to various power producers.
Eco-friendly green energy; a shift from the norm
The project is eco-friendly since it only offers green energy options. The energy options that are available on their app include biomass, solar and wind power.
The project is a paradigm shift from the traditional model where energy producers have to first sell the generated power to an intermediary who, in turn, supplies consumers. The intermediary mostly comes in the form of multinational corporations who offer their customers limited options. They also tend to fleece the consumer with added costs. Therefore, these additional costs always tends to leave consumers at a disadvantage.
Saved costs and increased turn over
Lition’s alternative to power will kill two birds with one stone. On one hand, it will reduce the cost of power and on the other, it will be a boon to the power plant.
CEO of Lition, Richard Lochwasser, says that the project will save consumers money by eliminating the intermediaries. He estimates that the more than 700 households already connected to this affordable power already save 20% on energy costs compared to households using the traditional model.
In addition, the company will make a 30% increase in its turn over revenue.
Ethereum smart contracts
Lition will partner with various green energy producers who will offer their power to consumers via the mobile application. Consumers will enter into an Ethereum based smart contract which will facilitate the processing of payments. Blockchain smart contracts are famed for ensuring accuracy and transparency in commercial activities.
Despite the blissful prospects offered by Lition, the startup is facing various hurdles . For starters, the Ethereum blockchain network is slow in processing transactions, leaving the consumer waiting for more than 30 seconds to receive confirmation.
Lition also suffers from capacity deficits which may impede its operations to Germany.
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