Bitcoin Global News (BGN)
November 05, 2018 -- ADVFN Crypto NewsWire -- Germany has been
known for quite some time as a global leader in terms of countries
that are truly going green. All the way back in 2008, Germany was
reportedly generating 14.2% of all of its electricity from entirely
renewable sources. In the last few years, they have added a new
form of evidence to their status as a progressive country. In a
more specific sense, what we mean by this is the fact that they
have emerged as a sort of leader in terms of accepting new
technologies like the Blockchain, as well.
Now, they have effectively combined the two, which can be seen in
the example of Lition that is a licensed energy company in Germany,
built on the Blockchain. If you look at how much trouble Blockchain
and Crypto firms are currently having in terms of being taken
seriously enough to be legal and able to be regulated, then you
will realize how striking this is. Not only is Lition able to
legally do business in the energy market in one of the world’s most
economically successful companies, they have actually been gaining
transaction as of late. According to a Coindesk piece on the
subject that was released today, this has amounted to gaining
clients in 12 German cities in less than a year, which include
Berlin, Hamburg and Munich, that many consider to be the most
powerful cities in the country.
Included in this growth is the fact that the company now reportedly
has 700 clients, on a household by household basis. If you are
wondering at this point what Lition’s differentiator is that is
allowing it grow at this rate, it all starts with the basic
principle of decentralization. On a more detailed level, this means
that Lition connects households directly with an energy provider,
which in this case is them, in order to cut the costs of supplying
and using this energy at the same time. The reasoning behind this
is that the accepted norm in the energy industry today is for
smaller renewable energy producers to sell their energy to large
global power companies. These large companies then re-sell the
energy to consumers or households. What appears to be a more
specific case of this in practice is that of trading in RECs or
Renewable Energy Certificates.
If this is taken as the accepted industry practice with regards to
renewable energy, then we can confidently add that the large
companies are probably making a killing off of this process. If
they were not doing so, then it would be logical to wonder what the
incentive would be in a business context for buying this energy.
Because all of this can be logically hypothesized as true, then a
strong case can be made for a company like Lition to cut into this
market share that these industry giants are generating.
What can call such a product like Lition is a “distributed energy
exchange.” Consumers and producers agree on a price and exchange a
real amount of energy that has actually been produced. In this
case, the energy in question is solar. One of the most unique
features about such an exchange is that it also needs no human
involvement in terms of recognizing when a payment has been sent
and authorizing the exchange of a product because of this. In other
words, smart contracts rule the entire process. Users send Euros
for the energy they want and the system automatically converts this
to Ether to send to its central smart contract. Once the contract
receives the Ether, it then automatically sends the energy to the
respective user. Because of the same public and private key
infrastructure that runs almost every Blockchain-related project,
it is able to quickly identify what user needs this energy, based
on the public and private keys attached to each payment.
In that Lition plans to ICO sometime later this year, it will be
interesting to see how doing so might scale their offering in a
global sense, since they have aspirations to go far beyond the
energy market and become what they call “the Blockchain Standard
for business.”
By: BGN Editorial Staff