Nov 5, 2018 at 06:45
Nov 5, 2018 at 06:45 UTC
Lition Cuts out Middlemen, Powers 700 Households Through its Blockchain Platform
Launched earlier this year, Lition, the Ethereum-based project is giving German citizens cheaper energy. Lition is changing the way how global energy market works by eliminating the unnecessary middlemen, thus helping users save on the third party fees.
The licensed energy supplier has clients spread across 12 major cities of Germany, including Munich, Berlin, and Hamburg. The decentralized energy market is built on top of the Ethereum Blockchain and it connects consumers with energy producers directly. Today, more than 700 households are leveraging the decentralized energy platform to purchase energy.
The energy market works with an energy supplier selling its energy to an intermediary. These intermediaries happen to be multinational firms. The end-customer has to buy its energy from these very giants. CEO of Lition, Richard Lohwasser, elaborated on the problem by saying that the multinational intermediaries have a lot of autonomy and they don’t provide consumers with the choice of picking between the different types of energy sources. Hence Lition aims to eliminate these middlemen.
Lohwasser was quoted as saying:
“Our energy exchange connects customers and producers directly. Producers put their energy on the exchange and then customers can buy it. Usually buying directly from producers is limited to energy suppliers that are big corporations. We’re bringing the exchange to the consumer, so consumers can pay for the energy they want.”
As per Lition, cutting out the middlemen from the energy supply chain saves customers as much as 20 percent on their electricity bills, while at the same time this process also increases the revenue earned by power plants by more than 30 percent.
Ironically Lition emphasises on ‘green energy’, which even though is better for the environment, yet it is more expensive than other energy sources. Consumers have the choice to pick from wind, solar, or biomass on the Lition app. Once this choice is made, the consumer is required to make a payment in fiat currency. Consequently, an Ethereum Smart Contract validates the payment, and automatically sends the energy to the consumer.