Lition is developing the only scalable public-private blockchain with deletable data features, made for commercial products. Lition, in co-innovation with SAP, is a foundation that develops the next generation blockchain infrastructure designed for businesses to bring blockchain applications from their currently predominant Proof-of-Concept stage into commercial products with mass-market adoption in a legally compliant way.
Lition is going to succeed because it’s placing itself in a market position that is not yet exploited. Blockchain as such is failing in being truly applicable in the business context due to current technology limitations such as privacy laws incompliancy and low transactions throughput. Lition aims to fill these gaps with the help of a strong business-oriented leadership team and advisory board as well as by joining forces with the N.1 company in the world when it comes to business software development, SAP.
SAP and Lition believe that the objective could be achieved by combining a data storage & exchange focused, permissioned platform with a layer for publicly verifiable claims similar to concepts described commonly as zero-knowledge proofs.This would allow for high throughput, low latency for the majority of private transactions and public validation capabilities for select records.
Based on the design mentioned above, SAP aims to explore a decentralized data storage & exchange focused, permissioned platform, that incorporates a pluggable verification layer, leveraging their existing database & middleware expertise.
Lition will provide a decentralized consensus and verification mechanism tailor-made to hold these publicly-verifiable claims, extending the capabilities to an identity-agnostic audience.
The co-innovation agreement is not only delivering the needed expertise to develop the standard blockchain for business but also makes sure that the infrastructure user base can quickly grow thanks to SAP’s 400.000+ customers in more than 180 countries and the 17.000+ SAP partner companies.
Moreover, to fully unleash blockchain’s potential, Germany’s federal government needs to go a step further in developing a legal framework that supports Distributed Ledger Technology (DLT) while preventing data breaches and other abuses. In this context, Lition is in the forefront with its CEO, Dr. Richard Lohwasser who is regularly invited by German lawmakers to shape the national legal framework.
Finally, Lition is well positioned to design a blockchain infrastructure for business use, as it launched the world’s first P2P energy trading dApp that is commercially live in a mass market with real revenues and real customers in over 25 cities.
Lition’s founders met originally at Vattenfall, one of the biggest energy conglomerates in Germany. After many years spent as technology entrepreneur and later consultants, Richard and Kyung saw a new opportunity arising on the horizon. He had the feeling that outdated structures and technologies were holding back innovation.
Finally, approaching the end of 2017, together with Kyung-Hun Ha, Lition was founded. After onboarding Lition’s seed investor the rest of the team joined gradually the Berlin based headquarter, between March and June 2018.
1. Regulatory risks:
Governments are still grappling with public policy on the regulation of crypto currencies as a form of settlement in trade. Governments adverse to the proliferation of the use of crypto -currencies in local commerce could issue laws and regulations deeming the use of cryptocurrencies a regulated activity It is therefore crucial that trusted brand names – like SAP – enter the market to ensure mainstream adoption.
2. Immature technologies:
New technologies that are challenging the dominance of blockchain as new “revolutionary” medium, such as distributed hash table (DHT) directed acylic graph (DAG). The problem is that these represent immature technologies, that can lead to data protection issues, hacks and thus negative public perception. This, in turn, will hinder mass market adoption, regardless of how solid the SAP-co innovated Lition solution might be.
Overall crypto market evolution – at the time of writing we are approaching the end of 2018 and the market confidence is low. The ongoing loss of interest in the technology could lead to a significant delay in mass adoption. However, being Lition B2B oriented, this threat is not seen as very significant, as the main token purpose and thus demand arises lies in organic, business-driven transactions and not speculation
4. Talents availability:
Ability to attract and retain additional, qualified personnel. Competition for such personnel can be intense, and there can be no assurance that Lition’s results shall not be adversely affected by difficulty in attracting and/or retaining qualified personnel.
5. Consensus layer participation:
To ensure the integrity of blockchain transactions Lition uses a Proof of Stake consensus algorithm that require users to “stake” a portion of their tokens. Many activities are planned to motivate participants to join the network, nevertheless it is hurdle.