A small Ethereum project called Lition is helping the citizens of Germany to find less energy.
Lition was launched at the start of the year and has already been licensed as an energy provider in 12 major cities in Germany. Some include Hamburg, Berlin and Munich who have signed up their own decentralized energy market. The project was built on Ethereum's Blockchain and connects users directly with small or large energy suppliers.
Ethereum Price (ETH) today – ETH / USD
Currently, over 700 families in Germany use this decentralized platform to buy energy.
The company is trying to stop the way global energy works using a concept that is familiar to Blockchain evangelists. Bypassing intermediaries helps users save money on energy.
How does it work
In households, energy suppliers sell electricity or solar to an intermediary and customers buy from that intermediary.
Here, the problem lies in the multinational intermediaries that have too much control and do not give consumers the choice of which energy to buy.
The company solution is to completely remove the intermediary.
Lition's managing director, Richard Lohwasser, states:
"Our energy exchange directly connects customers and producers. The producers put their energies into the exchange and therefore the customers can buy it, "
"Usually direct purchase from manufacturers is limited to energy suppliers that are large companies. We are bringing the exchange to the consumer, so that consumers can pay for the energy they want".
Removal of giants
Cutting the intermediary also reduces costs. According to Lition, the customer could save up to twenty percent on bills. Furthermore, it increases the revenue of power plants by thirty percent.
Users of lition can choose between the categories of solar, wind or biomass energy. They can also choose the best supplier that could be the cheapest option.
When a user finds the preferred energy he wants to buy, he can pay in euros to Lition. A smart contract Ethereum works behind the scenes to detect this payment and automatically send the energy to the customer.
The Lition website explains.
"Lition & # 39; s …. blockchain technology simplifies the process of purchasing energy directly from green producers of any size, using transparent smart contracts that allow consumers to circumvent all the complexity of power distribution brokers, "
Currently, users are only accepted by Germany, where the company is authorized to operate. Users wishing to purchase energy with the company market can inquire about the website. There is a price estimation function that works with the postal code of the user.
Lots of the Blockchain
There are some bad news; like other companies, they have problems with Ethereum.
Lohwasser said bluntly,
"Ethereum is not a good system, "
He still appreciated the platform and said it was unauthorized and open. However, it still lists some problems that the company has had to face.
"It is very slow. It takes 20 to 30 seconds to tell a customer if they can buy energy or not, "
Lohwasser added that as a company that seeks to promote renewable energy, they feel uncomfortable using a Blockchain that is based on mining as it is a process of energy intake.
Society is already looking for something better. Unfortunately, they have not been able to find one that is scalable and without authorization.