Blockchain project provides electricity to households in 12 German cities

The Blockchain is designed to make feeding more efficient. (Photo: dpa)

Lition was founded earlier this year and is already a licensed energy supplier in Germany, with customers in 12 major cities, including Berlin, Hamburg and Munich.

The decentralized energy market of Lition is based on Ethercha Blockchain and connects consumers directly to large and small energy producers. Nationwide, more than 700 households now use the decentralized platform to buy energy.

The concept of Lition is based on circumventing unnecessary intermediaries. Generally, an electricity producer sells electricity to an intermediary, often a large company. Customers then buy energy from this broker.

The problem, according to Richard Lohwbader, CEO of Lite, is that intermediaries have too much influence and do not give users enough energy choice. His solution is to completely eliminate intermediaries.

"Our energy exchange directly connects customers and producers," Lohwbader told CoinDesk. Normally, direct purchase from producers is limited to large energy suppliers.

Disabling intermediaries also reduces costs. According to Lition, customers save on average 20% of their electricity bills and increase sales of their power plants up to 30%.

Like other companies, Lition also has problems with Ethereum. "It's very slow, it takes 20 to 30 seconds to tell a customer whether or not he can buy energy," Lohwbader says. As a result, at least a dozen alternative block chains have been reviewed, but none of them has been both scalable and unlicensed.

Lohwbader is skeptical about private blockchains, which everyone can not participate in, unlike the public blockchain. "You might as well not have a blockchain," he remarked.

For example, Lition is badociated with SAP, one of the largest software companies in the world, to create its own system, a chain of hybrid business blocks combining aspects of block strings. private and public.

Lition emphasizes that she has developed all technology without funding through a first offer of parts (ICO). However, in order to continue its public-private block chain and not just to be used in energy use cases, the company is planning an ICO later this year.