Lition is a small Ethereum-based project that directly links consumers to energy producers on the Ethereum project. In fact, this implies that Lition completely eliminates middlemen from the power game with the support of Ethereum blockchain.
Already, the firm estimates that it has lit up 700 homes as these consumers use Lition’s decentralized market app to meet their energy needs. The energy company says that its main objective is to connect users to electricity sources, thus eliminating power companies intermediaries and attaining a decentralized energy market.
Understanding the Current Power Market
The current electricity matrix works in a way that makes middlemen indispensable. Undeniably, energy producers (wind, solar, etc.) meet with corporations to sign agreements. These agreements will give the corporation the power to bill the consumers. In other words, these corporations sell electricity to consumers with a markup price.
However, Lition wants to change the status quo. To this end, it is completely eliminating the corporation markup price. Consequently, the price will drop significantly. According to the company, its electricity supply strategy will see the price drop by 20% and increase the earnings of energy providers.
Lition’s Capacity and Challenges
From the look of things, Lition may lack the capacity to go beyond Germany, where is it currently based. Nonetheless, the company states that they see this kind of service as something that is bursting with potential. With this in mind, Lition has a mission of providing everyone around the world with cheap electricity by cutting off the redundant corporations. While the energy firm continues to dream big, they face many setbacks emanating from Ethereum blockchain.
It is no longer news that Ethereum is struggling with scalability, which slows down the entire network. The company lamented that it takes approximately 20 to 30 minutes to tell a customer whether they can buy energy or not. Another obstacle starring Lition in the face is the cost of mining. Much as the company prefers to work with renewable energy sources, it is ironical that they depend on mining, which incurs additional costs itself.
The CEO Sheds Light on the Project
Richard Lohwasser, the CEO of Lition, explains the difference that they bring to the energy table. The chief executive accused the big corporations of sidelining consumers in the current market. On how the innovative company is different from what is obtainable today, Lohwasser pointed out that customers determine the preferred energy choice (solar, wind, etc). In fact, he said that Lition has already partnered with software giant SAP to end its current setbacks. He added that Lition’s strategy effectively ends the situation where big corporations gouge consumers.
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