LITION ANALYSIS

in crypto •  2 months ago

OVERVIEW

What is LITION?

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. The infrastructure is the only scalable public-private blockchain with deletable data features.

FEATURES & TECHNOLOGY

Now that you have some idea of what Lition is from the above paragraph, it is time to learn what Lition can be used for and some of its proposals and products.

Proposed Features

  • Data Privacy: Sensitive data is STO red on private sidechains and are Quantum-computer safe.

  • Security Token Offering: Made for European regulated STOs. Designed with the Government.

  • Regulation-proof and deletable: Anyone will be able to store their private data as long as they want to. Fully compliant with data privacy regulations.

  • Infinitely scalable and low-priced: Every new sidechain increases throughput. Smart contract executions for $0,01 with 3 sec block confirmation times.

Lition Use Cases

  • P2P Energy Exchange (LIVE): Lition has established the world’s first P2P energy trading solution that is fully licensed and commercially live in a mass market (Germany). More info on this is at the MVP section below.

  • STO Platform: Security tokens can be issued and traded on the Lition Blockchain when it goes live.

  • Cross Industry Applications: Lition Blockchain will be used to solve various issues and increase efficiency in some industries like Healthcare, Banking , Automotive , Pharmaceutical and more. You can read more on this here. A very good article on how Lition can help in the finance section can be found here.
    1_H_hGJb16GJRScIfZSm0yzA.jpeg

Technology

Lition is developing a solution that assures data privacy while being permission-less. This is made possible by connecting a permissioned sidechain to a public mainchain. Lition is currently using and building a Layer 2 Solution on Etherium's blockchain but its true goal is to build a universal layer 2 solution for all public blockchains once interoperability between public blockchains becomes more feasible.

So one of the things that fascinated me about Lition is that they claim to be a blockchain with deletable data features. How does this work? As per their whitepaper, separate storage of private and public data is core to Lition's blockchain architecture. In a nutshell, we split between:_

  • Sidechain block hashes and management: Stored in the mainnet (currently Ethereum)
  • DApp data and smart contract executions: Stored in the sidechains (public or private).

The design for a blockchain network covers minimum requirements for a governing agreement among a privileged subset of the nodes' operators, ensuring that private, sensitive data can be handled and securely deleted on-demand - even connected to smart contracts for deletion. The guiding design criteria are postquantum security for data integrity, a path towards post-quantum security for data privacy, data minimization under the constraint of providing fault tolerance, privacy of sensitive data, a provision to delete all occurrences of sensitive data, and the freedom to join as a (non-privileged) node without any special provisions or legal obligations.

A deletion request is basically a transaction signed by the original data owner with the data hash that should be deleted. Upon receipt, all nodes will delete the data of the requested transaction, but the transaction hash stays intact. Therefore, the Merkle tree of the block remains Intact, and an unobstructed trail from the most recent block all the way to the sidechain's genesis block is passable.
Lition uses Proof of Stake consensus to process transactions and also secure the network. By observing Lition's blockchain from a high level, six main stages are needed to complete the transaction (:Tx) flow. In this order Put Gas on Sidechain. Create Tx, Process Tx. Propagation within sidechain, New block creation (Sidechain) and Mainnet synchranization. To have a better understanding of the following explanations, please refer to the architecture table below.

To further your understanding about the technology, you should read the well written whitepaper or the technical whitepaper

COMPARISON WITH COMPETITORS

Lition faces stiff competition in both the traditional native blockchains (ETH , EOS) , Layer 2 Blockchain solutions (Loom Network) and energy-based blockchain companies (Wepower , Eloncity). Below is a comparison with some of Lition’s competitors.

Comparison with traditional native blockchains

MVP

Lition already has a Working P2P Energy Exchange dApp with customers in more than 25 cities in Germany. Lition has established the world’s first P2P energy trading solution that is fully licensed and commercially live in a mass market (Germany). Lition also recently open sourced their code and you can read more about it here. This dApp will be migrated to Lition Mainnet once mainnet is launched.

You can view the live demo here using the information below

User Name: demo
Password: demo1234

and source code here

Lition also has a banking use case MVP that is still being tested and hasn't been released to the public yet. Together with a soon-to-be-announced leading bank (~$1trillion total assets) and a real estate development company (~$100million) Lition has signed a contract to develop an MVP for a syndicated loan i.e. a DApp on the Lition blockchain for syndicated loans, starting with a loan for a real estate at a volume of 20 million EUR covering a syndication of 2 banks.

Below is an image of what the banking mvp currently looks like

ROADMAP

Dare I say it, but Lition has one of the most detailed Roadmaps I have come across so far in my time reviewing projects. I implore you to look through the whitepaper for a more detailed map but I will highlight the main dates here. Testnet will be launched on or before token sale and Mainnet is slated to be launched in Q3 2019 which is roughly about 6 months after token sale which is a long-ish amount of time for investors to wait to start using their tokens in Lition.

Q4 2017 - Formation

  • Lition is formed with an initial fundraising and first partnership established
  • Alpha version of P2P energy trading app releases

Q1 2018 - Building P2P Use Case

  • Better Version of P2P energy trading app releases
  • Obtains license as an electricity supplier in Germany
  • First employees hired

Q2 2018 - Commercial Launch P2P Use Case

  • Gains technical advisory from SAP
  • Design of blockchain architecture imitated

Q3 2018 - Initialization Of Blockchain Ecosystem

  • Technical Whitepaper gets released
  • On-boarding of Energy Partners
  • Office opened in Beijing

Q4 2018 - Testnet MVP

  • Gains support of German Blockchain Law makers for STO in Lition Blockchain
  • Private release of Testnet for MVP
  • Completes seed funding

Q1 2019 - Testnet & Ecosystem Growth

  • Public release of Testnet 1.0
  • Token Sale slated for March
  • Launch of Banking and Security Token Use cases
  • On-boarding of dApp partners

Q2 2019 - USE CASE

  • Smart grid use case launched

Q3/Q4 2019 -Mainnet Launch & Ecosystem Growth

  • On-boarding of more dApp partners
  • Establish more partners across industries
  • Mainnet Launch (September target)

2020+

  • Public release of Mainnet 2.0 with full feature set
  • Large scale marketing for ecosystem

TOKEN METRICS / DISTRIBUTION

Ticker: LITION
Total Supply: 160,000,000
Token Price: $0.10
% of Tokens sold: 50%
Softcap: $2,000,000
Hardcap: $8,000,000
Country: Liechtenstein
Unsold Tokens: BURNT

I like that 50%of total token supply is being sold to investors, which is quite rare to see considering most projects sell less than 40% to their investors. The team and advisors keep 11% of the token supply while the rest is mostly used for development marketing and general ecosystem growth. Even with the current challenging ICO market where projects are finding it very difficult to raise money, Lition has successfully reached their Softcap of $2m, which means the project will go on with development and Mainnet release.

HODL Highway

Private sale investors get no bonus while public sale investors will only get a bonus based on the duration of time they hold their tokens in their wallet.

Once you receive your tokens after TGE and tokens are unlocked you will be in full control of how long you are willing to hold on to your tokens in order to be eligible for a certain amount of bonus tokens. To be eligible, all you have to do is to not move your tokens from the wallet which you have participated in the sale for a given amount of time.

More on the HODL Highway can be found here

Use of Proceeds if Hardcap is reached

Vesting

  • Seed, Private and Public Sale
    1_2mR5moPEY8kouxNl87Un7w.png

  • Advisor: same lockup as private & seed, vested 90 – 180 days, each 30 days 25% unlock

  • Team: vested over 720 days, each 180 days 25% unlock

  • PR: vested 90 - 360 days, each 90 days 25% unlock

  • Eco Users: 12,5% instantly released after TGE, next 12,5% after 90 days and so on

  • Eco Devs: 12,5% instantly released after TGE, next 12,5% after 90 days and so on

Token Usecases

GAS - Any transaction or smart contract execution requires a specific amount of tokens. The number of tokens needed is deterministic, like Ethereum'S Ether-Gas function. Due to the Proof-of-Stake (PoS) consensus mechanism, the overall costs of transactions and smart contract executions are set to USD 0.01. Potential fluctuations in the LITION/USD exchange rate are covered through periodical gas modifiers. This allows DApp users to calculate with fixed transactions costs. which is crucial especially for large corporations.

STAKING - Tokens need to be staked in other to be a node in a sidechain. Each sidechain has its own network of nodes. Each node has to subscribe for a particular chain by filling in some parameters in a sidechain-specific smart contract to the backbone Mainnet. By doing so, it is assured that an X amount of Lition tokens are being used to stake exclusively for one sidechain. To incentivize good behavior in the network, nodes must be economically involved as collateral. 20.000 Lition tokens are required to enter the network. This amount is adjusted during time accordingly to the USD market value of Lition tokens. The goal is to maintain the network accessible over time.

MINING REWARD - This incentivizes people to run nodes and act as validators which secures the network. Lition itself is not charging for the service but the actors that are part of the validation system are not doing the validation task for free. Therefore, the whole system needs a fuel to run an incentive. This incentive is a reward of native tokens. In the meantime, from a developer perspective, the system has to be bug-free. Bad behavior that could potentially temporary crash or in the worst case break the system has to be disincentivized. In some cases that is assured by stakes that validators would lose in the case they misbehave.

PARTNERS & INVESTORS

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SAP - Watch the video below to understand Lition's co-operation with SAP as told by SAP's CTO Dr. Jurgen Muller

LONGHASH - Longhash is a well-known blockchain accelerator with offices in Tokyo, China, Hong Kong, Singapore and Berlin. They have chosen Lition as their second investment of their German office next to the project MXC. Longhash has a strong network of technical and financial partners and supports them in these matters together with their co-founder and Lition Advisor Yan Fena Chen.

LD CAPITAL - A financial partner to Lition, LD Capital is one of Asia's earliest organizations focusing on value investing in blockchain field. LD Capital has successively discovered and invested in projects such as Qtum. Vechain and Eas which all achieved over 100 times return.

ALPHA LABS - Another financial partner to Lition, Alpha Labs is one of the largest crypto assets fund based in Seoul, South Korea. Alphalabs gained reputation as serial entrepreneurs, VCs, and early blockchain supporters focused on catalyzing high-impact projects from China, South America, Southeast Asia, and Japan.

GASAG - An energy partner to Lition, GASAG is a leading utility with over $1bn in revenue and over 1m customers. Lition Energie has connected GASAG power plants to Lition's blockchain energy exchange, and GASAG operations, in turn, provides outstanding customer service to lition's userbase.

TEAM

Capture.PNG
Dr. Richard Lohwasser - Co-Founder & CEO of Lition. Before Lition, Richard worked as a Project Manager for Mckinsey & Company for 6 years, was the youngest director in the history of Vattenfall (a US $10bn European utility corporation) and was responsible for operations of ExtraEnergie with approx. 350 employees under him where he worked for 2 years.

Dr. Kyung-Hun Ha - Co-Founder & CO of Lition. Current Director in GASAG, Current CEO of Fixie Fever - an e-commerce shop for fixies and single-speed bikes in Europe. Was also a director in Vattenfall along with the CEO of Lition.

Dr. Manfred Gabriel - Founding Partner at ADVISUM. Board member in Lition along with Jan Wiedenhaupt and Reinhard Lohwasser

Stephan Vogel - Head of Business Development

Stephan Bialek - Head of Finance & Operations Manager

MAIN ADVISORS

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Dr. Jürgen Müller - Technology Advisor to Lition. Jürgen is the Chief Innovation Officer of SAP, the world’s leading enterprise software company with over 335,000 customers in over 180 countries and €22 bn in revenue.

Yan Feng Chen - Digital Leader of the team that built WOOKONG, the first multi-signature hardware cold wallet for various currencies, and co-founded Cybex, the decentralized Exchange, and the LongHashken Economy Advisor to Lition.

Kelly Ford - Sales & Marketing Advisor to Lition. Before Lition, Kelly was head of marketing for EBAY in New York and then CMO for PayPal in Germany, Austria and Switzerland.

Prof. Dr. Markus Bick - Research Advisor to Lition. Head of the Chair of Business Information Systems at ESCP Europe, one of the top tier Business Schools in Europe, since 2005.

FINAL THOUGHTS

  • This is the first project I have seen having an actual SAP member as an advisor. The CTO of SAP has Lition in his LinkedIn profile which shows the project is legitimate.
  • Lition already has a working product in the form of a P2P Energy Trading Exchange dApp that generates revenue and has real world customers.
  • Testnet will be launched before token sale which gives potential investors a glimpse of what they're investing in
  • Mainnet launch is scheduled for 6 months after token sale. This is a long time for investors to wait to use the tokens (though the team said tokens could be staked before mainnet)
  • They have implemented some anti-dumping measures such as "Hodl Highway" and offering no bonus to Private Sale investors to help prevent token dumping when its listed on an exchange.
  • They face a stiff competition with both traditional block chains and Layer 2 Blockchain Solutions such as Loom Network which is very similar to what Lition is aiming to do. Lition does have SAP as a partner but that still doesn't eliminate the over-saturated space it is going to be entering.
    -Soft Cap has already been reached which gives them enough funding to finish the project and with token sale yet to be completed, they should be able to raise more money for supporting themselves long-term.
  • The success of Lition depends on it having Dapps that would bring in users to the network. There are currently a lot of blockchains out there with little to no actual users due to the fact that they dont have that many Dapps.
  • Lastly, I wished this used a two-token model with one being the current utility token and the other a dividend/profit sharing token with holders owning some % of the company. This is just a personal preference and I know it is not easy having a security token due to the legal aspects of it being a security, but if this bear market has taught me anything, it’s that utility tokens are not being viewed as favorably as they were in 2017 / early 2018, and the market is moving towards security tokens.

LITION SOCIAL LINKS

WEBSITE
TELEGRAM
TWITTER
MEDIUM

Disclaimer
This analysis is based on information that is currently publicly available and that was provided by the Lition team. The above information is not financial investment advice. Please do your own research before making investment decisions. This information is for educational purposes only. I have not personally invested in Lition.

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