Lition Whitepaper V1.10.0 Public

001 Lition White Paper
The blockchain infrastructure for all regulated markets

built on the world’s first P2P energy trading solution
commercially live on a mass market
WHITEPAPER
Version 1.10.0 from 01.08.2018
This document represents a work-in progress

version. All contents are subject to change.
LITION,
THE PROVEN
ENERGY ECOSYSTEM
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decision regarding a contribution. Lition Tokens are provided by Lition AG, Liechtenstein.
This document, the information provided on the www.lition.io website and any terms and conditions published by Lition do not constitute a prospectus or offer document of any sort and are not
intended to constitute an offer of securities or a solicitation for investment in any jurisdiction. The Lition Tokens are digital cryptographic utility tokens based on the ERC20 token standard and
provide access to Lition’s blockchain infrastructure platform, once developed. The Lition Tokens are not intended to constitute securities and/or collective investment units in any jurisdiction. If you
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distribution or dissemination of this documents/information is prohibited or restricted.
KEY HIGHLIGHTS ...................................................................................................................................................................... 4

THE LITION APPROACH ............................................................................................................................................................ 5
Vision and mission .................................................................................................................................................... 5
Our motivation .......................................................................................................................................................... 6
Lition – The world's first mass market P2P trading platform ...................................................................................... 7
Achievements ........................................................................................................................................................... 8
How it works today................................................................................................................................................... 8
Consumer Benefits ................................................................................................................................................... 9
Producer Benefits.................................................................................................................................................... 10
Comparison with other P2P Energy Trading Projects ............................................................................................. 11
THE LITION BLOCKCHAIN APPLICATION ..................................................................................................................................13
Current implementation of Blockchain-Application ............................................................................................. 13
Key components in current Blockchain-Application ............................................................................................. 15
THE LITION BLOCKCHAIN INFRASTRUCTURE ...........................................................................................................................18
The starting point - Shortcomings of already existing blockchains for our current infrastructure ..................... 18
Comparison with existing Chains ............................................................................................................................ 22
The proprietary Lition Blockchain – co-developed with leading tech company ..................................................... 23
Token Use in the Blockchain ................................................................................................................................... 24
THE LITION ENERGY ECOSYSTEM ............................................................................................................................................27
The Concept ............................................................................................................................................................ 27
Use Case for Smart Metering and Energy-Data driven recommendations............................................................. 28
Electric vehicles ....................................................................................................................................................... 30
Smart Grids ............................................................................................................................................................. 31
Certificates of origin ................................................................................................................................................ 32
GROWTH ................................................................................................................................................................................34
Overall market growth ............................................................................................................................................ 34
How the Energy Ecosystem expands ...................................................................................................................... 35
How the blockchain changes other industries beyond the energy sector.............................................................. 36
Industry Partners..................................................................................................................................................... 39
Expansion plan with future industry partners ........................................................................................................ 41
Major Milestones .................................................................................................................................................... 41
OUR TEAM ..............................................................................................................................................................................43
Leadership team...................................................................................................................................................... 43
Advisors ................................................................................................................................................................... 46
Technology Team .................................................................................................................................................... 48
Operations Team from BAS (GASAG Group).......................................................................................................... 49
Business & Retail team............................................................................................................................................ 50
DISCLAIMER AND RISKS ..........................................................................................................................................................52
KEY
HIGHLIGHTS
Lition is currently changing the energy market around the world, by directly linking green energy producers with smart consumers,
thus making a currently closed-off system more transparent, financially attractive to producers and customers and sustainable.
Through our new approach, Lition’s innovative blockchain technology simplifies the process of buying energy directly from green
producers of any scale by bypassing unnecessary middle men. Consumers benefit from record-low tariffs, while genuine renewable
energy providers are able to realize higher returns for their essential contribution to a sustainable world. Lition is already fully
functional in Germany, with a fully working blockchain solution available for a growing number of customers at 41 million
households.
Based on the first-hand experiences in creating a commercially live blockchain application, Lition is now advancing to the second
phase of its evolution. Together with an exclusive partner and with advisory of SAP, Lition is developing a unique proprietary
blockchain which works not only for the energy sector but for all regulated markets. In addition to high volume and high speed
transactions as well as extraordinary lower cost, Lition’s infrastructure solution solves unaddressed technical issues such as storing
both public and private data on separate chains that can be deleted to satisfy global requirements of customers and existing data
privacy laws.
Building on this infrastructure, Lition is expanding beyond the proven Peer-to-Peer energy trading use case into other energy
applications to create an all-time energy ecosystem for global usage. Together with the strongest partners including energy
retailers, electric vehicle charging station providers and Smart Meter manufacturers Lition is now enabling additional uses for
commercial readiness.
Lition Highlights:
World’s first P2P energy trading platform The only public-private deletable Supported and backed by industry leaders
commercially live in a mass market blockchain infrastructure for a fully- and exclusive advisory
compliant energy ecosystem and all
regulated markets
THE LITION
APPROACH
VISION AND MISSION
Our aim is to democratize the energy sector by cutting out intermediaries between electricity consumers like households, and
electricity producers like independent wind and solar parks. Lition’s vision is a reversal of complex power structures, breaking power
company’s monopoly towards consumers and renewable energy producers.
“Lition – bringing the energy blockchain and ecosystem for the smart energy age” - Lition’s vision
Our mission is to introduce the blockchain-based Lition Energy Ecosystem to the global energy market which allows consumers
and producers to not just freely trade energy by circumventing stifling legal, technical and operational entry-barriers, but also to
build the global energy ecosystem in which every participant benefits.
“Disrupt the energy industry through Lition’s global energy ecosystem on a tailored blockchain infrastructure
making energy cleaner, cheaper and more efficient”- Lition’s mission
OUR MOTIVATION
A personal statement from, Dr. Richard Lohwasser, CEO of Lition Energie:
“I’ve been working in the energy sector for over a decade now. I started off as a strategy consultant, have conducted
extensive research on power plants for my Ph.D. and later worked as a senior executive in several top multinational utility
corporations where I was responsible for operations and general management. I’ve observed how large utility companies
have raised prices despite high profit margins. Exercising their dominant position in a complex and non-transparent system, large
utilities even use cheap green certificates to misleadingly market fossil fuels as green energy. These practices continue around
the world to this day.
Why do large energy utilities have this kind of power? Because over time, utilities have managed to create a complex
system that lacks transparency and consists of countless intermediaries that add costs.
This is not the way it should be. I don’t want to accept this kind of future.
I envision a democratic future, where consumers instead of utilities decide which green power-plant they want to
support. Directly. Without unnecessary intermediaries.
I believe that there is a different way and I want to play my part in creating a better future.
I envision a future where consumers have full transparency on the identity of their power suppliers and can consciously
choose their source, -unlike today, where the consumer only knows the utility company that they happen to have a
contract with.
I also believe in a future where consumers pay fair prices for their energy, where a bigger share of their money goes
directly to the green energy providers and less to intermediaries and utilities. A future in which modern technologies
radically shorten the supply chain to help achieve these lower costs.
We should live in a connected ecosystem in which prosumers, producers and smart grids work together in a
decentralized, open environment without national boundaries.
The solutions are smart contracts and blockchain-based technology. This is the reason why I founded Lition.”
The energy system currently runs primarily on ‘dirty’ energy, such as coal, gas and nuclear power, with only 10% in renewables and
hydro1. Roll-out of renewable energy sources, such as wind and solar, is desired and promoted by the public, but in practice too
little is happening. Oil and secondly natural gases are still the world’s fastest growing fuel types, and not renewables1.
The global market size for renewables is significant though, as worldwide investments have totaled USD 242bn in 20162. At the
same time, consumer electricity prices have increased significantly over the last years in most of the developed markets. As an
example, the electricity price per kWh has doubled in German since 2000, from 14ct up to 29ct3.
One of the main reasons for these developments is the complexity of our current system of power generation, distribution and
sales which is overloaded by regulations. In addition, multinational utility corporations are heavily vested in dirty energy sources
and are thus inherently biased towards these technologies. While some top-down policies have promoted the roll-out of green
generation capacity, the situation will only significantly change through a bottom-up approach, which ensures that:
1. Decision-making power is shifted from large utility corporations, in many cases state-owned and vested in
dirty energy generation power, towards actual consumers and
2. Economics improve in order to make true green generation capacity affordable
Lition’s motivation is to disrupt a biased, old-fashioned and non-transparent energy market. This is how we bring power back to
the people.
LITION – THE WORLD'S FIRST MASS MARKET P2P TRADING PLATFORM

Lition Energie in Germany was the first to deploy Lition’s Blockchain technology commercially. Lition Energie is an officially licensed
energy supplier connecting renewable energy producers directly to consumers via its blockchain-based Lition Energy Exchange
platform. By implementing a novel end-to-end energy exchange system, Lition bypasses unnecessary middle men within the energy
supply chain. The combination of a blockchain solution with highly efficient corporate processes and service operations which are
built on cloud-based solutions (SaaS), allows lower costs for energy customers while providing energy producers with higher profit
margins.
Lition’s approach simplifies and standardizes the energy sector, shifting power from established and traditional utility corporations
to consumers and producers, providing consumers decision-making power regarding their energy sourcing. The exchange platform
enables location and preference based offerings, thus leaving it to consumers to decide whether they want to receive their energy
from a photovoltaic installation on the neighbor’s rooftop or a solar park from a renewable energy company in another state. This
is the key difference to today’s industry practice in which consumers can choose their energy supplier, but not where the supplier
ultimately sources its energy. With the new approach, an increase in market demand for green electricity is directly routed to the
energy source and the consumer decides. Following the economic principles of matching supply and demand, the increased demand
is met by new, green power plants. This is how Lition will democratize the energy sector.
1 BP Statistical Review of World Energy 2017, Page 10

2 Bloomberg New Energy Finance 2017, Page 112
3 https://www.bdew.de/media/documents/1805018_BDEW-Strompreisanalyse-Mai-2018.pdf
In addition, by cutting out intermediaries, Lition’s approach results in green energy becoming more competitive. Using an efficient
blockchain-based exchange platform, Lition simplifies the legal, operational and economic hurdles for green power producers,
allowing the consumer to buy genuine green electricity at a record-low price. Long-term industry expertise and continuous market
research clearly show that price is the prime decision criterion for consumers. Therefore, a large-scale roll-out of green electricity
with fast adoption rate requires competitive pricing4.
ACHIEVEMENTS
To date, Lition and the local Energy supplier Lition Energie has achieved the following goals:
Fully operational (No pilot!) as a successful energy supplier in Europe’s biggest energy market; all
necessary and hard-to-get licenses have been obtained, meaning Lition is offering full-service energy
supply, incl. switching, billing, service desk, etc. to its customers.
Fully-functional & blockchain-enabled Lition Energy Exchange, accessible to all customers

including features such as:
• ability for consumers to buy energy directly from a connected supplier of their
choice
• ability for any producer to sell energy to consumers
• trustless environment allowing verification of energy producers and consumers
• tamper-proof energy exchange history on a public blockchain
Secured cooperation with 7 renewable energy suppliers to connect them to the Lition Energy
Exchange: Currently, we have a selection of solar, wind and biomass power plants connected and
available to customers.
HOW IT WORKS TODAY

For consumers, the local Lition supplier functions as an energy supplier with all country-specific licenses in place. In Germany, Lition’s
first operational country, consumers are supplied through the German Lition Energie GmbH. The German company holds the
challenging-to-obtain license from Germany’s Federal Network Agency (Bundesnetzagentur) and has signed contracts with over
100 distribution grid operators (DGO) to ensure energy delivery to consumers and compliance with national legislation and taxation.
Thus, Lition can officially guarantee power delivery to the consumer.
4 Lition internal study on price comparison conducted in June 2018

Figure 1: Description of the Lition approach
Unlike traditional utilities in the “old world”, Lition changes antiquated processes in the energy sector. As outlined in Figure 1, Lition
enables direct trading between consumers and producers or prosumers so that costly intermediaries, such as the European Energy
Exchange (EEX), are no longer necessary. The trade itself is a smart contract execution. The blockchain verifies the authentication
of buyers and sellers trading energy with each other, matches price and volume, and ensures that the quantity of traded energy is
sufficient (details see the blockchain section).
After the non-physical trade, the physical execution is carried out by the local Lition supplier (Lition Energie in the case of Germany).
It ensures the grid is compensated, as this is an intermediary that cannot (currently) be taken out. The power is delivered according
to the country’s regulatory requirements and the customer receives billing and service. While the customer’s energy exchange
portal offers large self-service capabilities, traditional communication channels like telephone and email are in place with a fully-
operating call center. As the quality of the customer service is of utmost importance for a sustainable business, Lition Energie has
officially partnered with GASAG, a leading German utility with over 400 call center agents, to provide service operations to Lition’s
customer base.
CONSUMER BENEFITS
Customers of Lition Energie enjoy tangible and unprecedented benefits making it truly a mass market product. As an enabler, Lition
takes out middle men that, in the energy industry, are conglomerates and have generated excessive profits for decades. As a result
of the blockchain based Peer-to-Peer energy trading, Lition’s highly efficient corporate processes and its dedicated focus on
digitization, customers benefit from record-low prices, their most relevant decision criterion. Currently customers are saving
approximately 20% on their monthly energy bill which makes Lition Energie the cheapest energy supplier in the market.
Additionally, customers get to choose and support the power plant directly so it's not a big utility making the choice, but rather the
customer. It is their contribution to a greener future.
Figure 2: Lition customer benefits and resulting commercial success
With these mass-market benefits, Lition was able to prove that offline revenues can be shifted into the blockchain space. This makes
Lition different to most of today’s popular blockchain solutions like Bitcoin, Ethereum and other altcoins, which generate revenue
solely from a closed community of Cryptocurrency-affiliated audiences. All solutions are not mass market products. Although they
could create a media hype, nearly all blockchain protocols on the market suffer from limited communities, low token usage and
low revenues shifted from offline to their blockchain. In contrast, just within weeks after commercial launch in May 2018, Lition
Energie already has attracted customers in over 10 cities and has contracted 7 green power plants, with many more in the pipeline.
PRODUCER BENEFITS
Lition’s blockchain-enabled Energy Exchange platform offers associated energy producers a marketplace for selling electricity
directly to consumers. This Peer-to-Peer trading deploys smart contracts and provides producers with numerous benefits, such as
standardized interfaces and operations. The biggest advantage of the Lition Energy Exchange is that producers can sell electricity at
a higher price compared to traditional markets, which increases the producers profit margin. Higher revenue is a crucial factor for
renewable energy producers as it increases the overall attractiveness of the business, therefore leading to increased investments,
i.e. installation of new renewable power plants. The currently active green power plants receive up to 30% higher return5 per kWh
sold compared to traditional energy trading via European Energy Exchange (EEX).
A common problem for renewable energy producers is that they are replaceable, as power plants are evaluated by the amount of
power they produce, not by the way they do it. There is typically a single market price for electricity, which is primarily determined
by traditional wholesale electricity exchanges like NordPool in Scandinavia, KPX in Korea, or EEX in Germany – independent from the
energy producing power plant. On the Lition Energy Exchange, consumers have the power to choose a specific energy supplier
themselves. Thus, a sustainable power plant can achieve a higher price point than a coal-fired plant, finally differentiating
themselves. Next to the source of power, this differentiation also incentivizes producers to increase their attractiveness by using
different price-points based on location or size. A small-scale biomass plant at a farmer in the neighborhood that burns side-
products of his farm can, for example, receive higher revenues for their electricity than a commercial biomass district heating plant.
5
Lition internal study on price comparison conducted in June 2018
Figure 3: Illustration of the Lition Energy Exchange
COMPARISON WITH OTHER P2P ENERGY TRADING PROJECTS

So far, there have been several blockchain-based energy solutions that issued an ICO. The three main projects are WePower from
Lithuania that are active with a PoC, Restart Energy also being active with a PoC (their existing customer base is solely from their
traditional non-blockchain energy business), and Powerledger.io from Australia active with 4 pilots in Australia and New Zealand.
All those projects share a similar conceptual frame in that they use a blockchain-enabled platform to trade energy. While these
projects are all still working on establishing the platform and/or starting in smaller markets, the Lition Energy Exchange is a) active,
not only with a pilot but fully fledged and b) running in a 41 million household mass-market. And all this has happened in Germany,
the largest and most regulated market in Europe.
Table 1: Comparison of product characteristics

Source: Whitepapers and website updates of projects as of May 2018
Considering ICO economics Lition foresees a strong demand for startups dealing with decentralized energy exchanges and tokenized
energy, despite the early stages of development outlined above.
Table 2: Comparison of ICO details and performance (source: Coinmarketcap.com)

THE LITION
BLOCKCHAIN
APPLICATION
CURRENT IMPLEMENTATION OF BLOCKCHAIN-APPLICATION
As of May 2018, the distributed Lition Blockchain application is running initially on the Ethereum public blockchain, to ensure
deployment on a trusted, well-working infrastructure. Given several well-known performance drawbacks of Ethereum, Lition is
currently migrating the Ethereum main net architecture to Hyperledger Fabric. Moreover, as part of an exclusive partnership with
a well-known leader in development of advanced technologies and with advisory of SAP, Lition is utilizing its experiences from its
up and running decentralized application to co-develop its own, proprietary blockchain infrastructure. This cutting-edge blockchain
infrastructure addresses a number of highly relevant issues of today’s chains, especially enabling both private and public sidechains
on an open blockchain while being able to delete data (see next chapter). The section below describes the current blockchain
application serving today’s energy customers, which will be extended once migrated to the new infrastructure. First insights on the
infrastructure are provided on the following chapter of this whitepaper. In-depth technical details are described in a separate
technical research paper.
Technically, every customer and every producer can run an individual node in the current Lition Blockchain network. Participation
is at their own discretion. As such, each of them confirms blockchain transactions and contribute to the succession of the blockchain.
Lition utilizes adapted blockchain clients based on market-leader Parity in combination with a specific, custom-developed API
interface that customers can access by choice, e.g. in case they want to optimize their energy algorithms themselves. Energy customers
just wanting to benefit from the producer of their choice and low energy prices can delegate blockchain engagement and trading
to their local Lition energy supplier (currently Lition Energie in Germany) similar to cryptocurrency exchanges holding hot wallets
for their customers. The latter does not hold the private keys. Hence, the local Lition Energy supplier runs a node acting on behalf
of all customers, but still signs every transaction with the individual private key of the customer to ensure every transaction can be
reconstructed on the block, while giving non-technical customers a convenient and less tech-related energy supply. These
customers therefore benefit from the blockchain in a “fire and forget” mode after their initial signup and don’t need to deal with
the blockchain, unless they actively choose to do so.
While the majority of energy customers fall into the category of low involvement customers, Lition strongly believes in providing
customers the freedom of choice to receive direct node and trading access to the energy exchange while using their own nodes. As
another layer of trust, Lition provides the source code to the client and the blockchain smart contracts as open source to the
developer community. This allows every user to verify for themselves that energy transactions are carried out as intended. This
applies to the producer as well, who uses the same blockchain node client, however as sell (as opposed to buy) smart contracts and
functions.
The local Lition energy suppliers also run their own blockchain nodes to scan the stored blockchain transactions for settled
contracts, as this information is needed for settlement of the energy trades.
Figure 4: Current Lition Blockchain system architecture
Prior to participating in transactions, the nodes need to register with their public key at their preferred local Lition Energy supplier
for physical settlement of energy and funds. Only producers that can in fact physically deliver power in the selected region are
added to ensure market deals can be executed and that market participants are protected. The requirements are country-specific,
in Germany this requires e.g. a recognition as a green producer as part of the Renewables Energy Act (EEG) and a physical ability to
deliver power into the high voltage grid with a balancing operator area (Bilanzkreis) registered at one of the 4 transmission system
operators. Customers that wish to consume energy need an active energy delivery contract with the local Lition energy supplier.
After registration the market participant receives an 11-digit pre-shared-key that is used once for registration of their public key at
the local exchange. Since this transaction is written in the public blockchain, all market participants can verify the registration of a
consumer or a producer with their provided public key. These are the registerProducer() and registerConsumer()
functions, that additionally pass an optional consumerData / producerData object describing the nature of the market
participant to its peers.
Figure 5: Technical flow of Lition energy transactions
KEY COMPONENTS IN CURRENT BLOCKCHAIN-APPLICATION

Offering Energy
Producers and consumers selling energy, “prosumers”, can offer their energy using the offer_energy() function. They specify
the amount of energy in kWh up for sale per interval, the period for which the energy can be bought and the interval. The interval
is the time-period for which an individual trade is carried out and is country and device specific. In Germany it is limited to 1 day for
customers without a Smart Meter, as this is the smallest measurement unit that can be legally billed. For smart-meter customers,
this interval increases to 15 minutes. A fixed interval that can be specified via parameter ensures consistency with the local legislation
and allows the energy provider to actually settle the smart contract.
Buying energy
Prior to buying energy, consumers need to retrieve a list of available offers and their offerIDs. As every node holds a full
replica of the blockchain, they can extract this information by reconstructing the individual trades and verifying them by comparing
the provided block-hashes with the expected outcome as originally proposed in Satoshi Nakamoto’s Bitcoin-Whitepaper back in
2008. This ensures the buying decisions are made on tamper- proof information and a trustless environment is guaranteed. If
customers are willing to trust offblock-resources, then every local Lition energy supplier offers an API service returning the list of
all currently open energy offers, their time-intervals up for sale and the kWh that are still available as-a-service. This approach
ensures a small amount of load is induced into the blockchain platform, as not every discovery request requires blockchain data
retrieval and thus transactions costs. It’s also a highly scalable solution, as the API service can be used for day-to-day usage, but the
actual on-block data retrieval is still available as a fallback and in case of consistency questions.
After identifying the desired offer through the offerIDs, then the customer places buy_energy() calls into the smart
contract holding the offer. A typical statement for a consumer desiring to get the contract Contractday representing the lowest
daily price would for example request his node to work as follows:
∀days = 1, … n: {
𝑘𝑊ℎ = 𝐸 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛
𝐶𝑜𝑛𝑡𝑟𝑎𝑐𝑡 = min 𝑝𝑟𝑖𝑐𝑒(𝑖) ∀ offers i = 1, … m

𝑠. 𝑡. : 𝑠𝑢𝑝𝑝𝑙𝑦(𝑖) ≥ 𝑘𝑊ℎ
}
Settling energy trades for the consumer
After market partners have come to an agreement and have closed their energy deals, the settlement is ensured through the local
Lition energy supplier. Using a block-scanner technology, it crawls through every settled buy_energy() transaction in both the
Ethereum blockchain and, once available, the Hyperledger blockchain. It then verifies every transaction, should it satisfy the
following requirements:
1. Seller’s public key has been verified through successful registerProducer() call
2. Buyer’s public key has been verified through successful registerConsumer() call
3. Both buyer and seller have signed the smart contract using their respective private keys
4. , i.e. no overselling
5. , i.e. no out-of-period transactions
All verified transactions are then aggregated at the end of every individual billing period, which is typically monthly for a consumer,
but can also be reduced e.g. if the customer is moving out of his apartment and needs to settle his energy bill. When comparing the
total energy purchased through the blockchain and the actual consumption read or estimated through the meter, the following two
situations can occur:
• Energy traded = energy needed: In this standard case the charges to the consumer are calculated as charges =
price * (kWh ordered – free kWh used). These charges are, together with mainly legally required elements that
have to be paid in fiat, invoiced to the consumer using his regular energy bill.
• Energy traded ≠ energy needed: If the customer has bought too little or too much compared to his actual demand,
the local Lition energy supplier prices the missing kWh using the standard market price for traditional, non-
blockchain-based energy supply. In this case the customer does not benefit from Lition’s direct connection between
producers and consumers and receives a price as if Lition would be like any other energy supplier. In practice, this
will likely rarely happen as we expect most consumers to activate an automated buying strategy that buys the needed
amount every day automatically using the Lition website.
All of the above processes are fully automated through an integration of the blockchain-application with our main backend and the
energy billing system using customized APIs. Further, scalability is ensured as the infrastructure layer of the main backend and
billing system are fully cloud-based with event-driven batch-processing.
Settling energy trades for the producer
In addition to the settlement process just outlined, the same aggregated verified transaction data generated for consumer
settlement is used for producer settlement. The total energy bought from a producer as sum of all valid buy_energy() calls is
then bought directly from the power plant or, if the power plant wants to, the power plant’s reseller using a PPA (power purchase
agreement). These PPAs are direct OTC (over-the-counter) transactions between Lition as a representative of the customer and the
power plant. This ensures all legal requirements are followed and the consumer really receives the energy he bought. Payment is
wired directly from Lition to the Power plant’s appointed bank account without any intermediaries. This ensures the money ends
up where it should and not with any unnecessary intermediary.
THE LITION
BLOCKCHAIN
INFRASTRUCTURE
THE STARTING POINT - SHORTCOMINGS OF ALREADY EXISTING BLOCKCHAINS FOR OUR CURRENT
INFRASTRUCTURE
With Lition’s hands-on experience gained as one of the world’s few mass-market blockchain applications in commercial production,
Lition is able to gather unique insights on the requirements of a blockchain in a commercial implementation setup.
While the current Ethereum-based architecture described in the previous section “gets the job done moderately”, i.e. allows P2P
trading, there are several infrastructural issues that do not position it as the best infrastructure for a trustworthy, truly well-
functioning and global energy ecosystem. Some of these, especially throughput, scalability and block-confirmation times are solved
by Hyperledger fabric, but the private nature limits easy adoption and thus, rapid growth of permission-less chains. Based on
comprehensive and stringent research as well as in-depth talks with the world’s leading blockchain projects, no suitable and working
solution to these problems could be detected.
In practice, Lition could clearly identify 6 core infrastructural issues with the current Ethereum-based implementation which are
only partially addressed by existing projects at different implementation stages:
Figure 6: Shortcomings of Ethereum in current blockchain application

Issue 1 – No light client that can run on Smart Meters
While Lition employs an innovative Smart Meter device (see the appropriate section in the use cases), today’s blockchain clients
that are needed to participate in the network as a node always require significant storage and processing capacity. Lition’s current
Ethereum client from Parity (parity.io), the most popular client in use, needs over 300 GB of storage. Even special clients like GETH6
need 80 GB of storage in their fast mode, going as low as 40 GB for pruned (trimmed) clients if only the most recent blocks are
stored. Pure light clients that only store block headers go down to 40 MB, but just like remote clients that don’t need any storage,
light clients do not have access to the data of previous blockchain executions. The latter, however is needed to execute smart
contracts and to verify the correct execution of network nodes.
A blockchain built for the energy sector clearly needs clients that can run on the thin hardware of Smart Meters or the control units
of the distribution grid’s voltage regulators while still calling and verifying the smart contracts they deploy. Other industries face
the same barriers with existing blockchains, for example banking with lightweight Point-of-Sales (PoS) devices or the automotive
sector with connected cars, increasing the relevance for such a feature beyond the energy space.
A promising solution could be Slock.it, which is piloting a similar light client, but so far is only limited to the Ethereum network with
its corresponding shortfalls.
Issue 2 – Transaction costs
High transaction costs caused by low energy inefficiency is a common drawback of typical blockchain implementations, with Bitcoin
as the most prominent example. Today, a smart contract execution for an energy trade on the Lition Energy Exchange costs approx.
USD 0.60. The reason is the number of hash computations that are required by the Proof-of-Work (PoW) consensus algorithms,
and thus the underlying energy costs to calculate them.
Bitcoin currently needs 60 TWh7 annually for its blockchain to operate, an amount of energy equivalent to the country of Columbia’s
annual energy consumption. At Lition, a sustainable energy environment is our driving force, and it is therefore of pivotal importance
to us that it operates on the most energy-efficient platform available. Lition operates initially on the Ethereum blockchain, which
uses significantly less energy than Bitcoin. In comparison, the Ethereum blockchain consumes 78 kWh/transaction7, thus making it
12.2 times more energy efficient than the Bitcoin solution, which uses 957 kWh/transaction7. These numbers will further improve
once Ethereum developers switch from their current PoW solution into a Proof-of-Stake (PoS) algorithm and Vitalik Buterin’s work on
off-chain smart contracts with Plasma8 is released into production state. This and also Lition’s upcoming shift to the Hyperledger
Fabric solution would significantly improve the energy efficiency of the Lition Energy Exchange. To operate sustainably, Lition needs
to reduce the energy consumption and thus, costs per transaction, to less than USD 0.01.
Almost any modern infrastructure chain like NEM, Cardano, ZipChain, or Hashgraph has developed solutions to solve this issue with
many open-source reference implementations available. Therefore, this issue does not pose a significant challenge. However, none
of these chains is additionally able to solve the other drawbacks which have to be solved in regulated markets.
Issue 3 – Slow Block confirmation
Currently, customers need to wait well over a minute until their energy trades are successfully executed on the Ethereum
blockchain. The underlying reason is high block confirmation times of currently 10-20 seconds along with a block height of several
6
See https://github.com/ethereum/go-ethereum/releases
7
digiconomist.net/bitcoin-energy-consumption
8
plasma.io
blocks needed for certainty. As no paying customer is willing to wait more than 1-3 seconds, Lition needs a solution to massively
improve the feedback times for smart contract executions.
Similarly to the second issue of high transaction costs, most modern chains have found solutions to this problem while staying
permission-less. But as is the case with the transaction cost issue, they have not been able to do so in combination with solving the
other shortcomings.
Issue 4 – No private sidechains for private data
As the public keys of the energy exchange participants are publicly registered on the blockchain, criminals could potentially misapply
this information, e.g. low energy trading volumes are an indicator that residents are on vacation. Lition’s Smart Meter data, e.g.
availability of electrical appliances, can provide an indication of household income: A customer possessing 3 TVs, an energy-efficient
dishwasher, a dryer and an electric floor heating is obviously wealthier than an average household. All this is data that Lition can
already detect today with its Smart Meter integration (see the use case section later in this white paper for details), but no customer
would want this information to be publicly known.
This aspect applies to many industries, such as (a) banking with personal loans, transaction data of bank accounts, (b) construction
with historic property data, (c) healthcare with medical patient data, (d) supply chain management with product, contract and
origin data or (e) social media with identity or personal (meta)data.
Typical solutions propose to reach privacy by putting private data on a public chain and encrypting it, as suggested e.g. for the
energy sector by researchers Karla Kvaternik et. al.9, or used for location-data by the blockchain Project Fysical10. Lition is aware
that these solutions have fundamental limitations as the encrypted data is still publicly available and therefore, prone to hacking if
vulnerabilities in the encryption are found or sufficient processing power is available to brute-force encryption algorithms, e.g.
through Quantum Computers. This has happened many times so far, e.g. for the widely-used WEP encryption, which due to faulty
design does not give a reliable protection against hackers.
Instead, Lition knows private data needs to reside on private sidechains available only to trusted nodes. Further, public sidechains
are still needed for public data, such as the offered energy price of powerplants that need to be publicly available. Both the private
and the public sidechains need to be embedded in a greater public and permission-less network so that new participants can easily
join to ensure a developer-friendly and easy adoption of the chain. A public chain is also needed to maintain the trust coming with
the zero-knowledge principle of blockchains, as any pure private-chain use case can be solved more efficiently with traditional
databases.
Issue 5 – No API interface for chain ↔ backend communication
During the development of the Lition Blockchain application, Lition developers had to spend intense time and resources to develop
an API interface to communicate between the blockchain and the Lition backend application. In fact, blockchain nodes need a
simple API interface to allow an easy integration into non-blockchain applications. This is basically required by any business
blockchain application in every industry that needs integration into offchain systems.
This issue needs to be addressed in order to allow a quick and easy roll-out of the Lition Blockchain solution into other markets and
additional use cases. Typical adopters, such as energy retailers or grid companies, typically have a complex legacy IT landscape,
making an easy and seamless integration even more important. These findings are not new, as corporate-targeted projects like
9
See Privacy-Preserving Platform for Transactive Energy Systems, Middleware’17, Las Vegas, Nevada USA, arxiv.org/pdf/1709.09597.pdf
10
See fysical.org
NEM or SAP’s blockchain-as-a-service solutions have also identified this pain point, which now needs to be addressed. However
neither NEM nor SAP’s current solution is able to also solve the other issues which remain in regulated markets.
Issue 6 – Data cannot be deleted from blockchain
Currently, all energy trades on the Lition Blockchain are permanently and irreversibly stored on the blockchain. While this is a
precondition of any public chain, it is not necessarily in the customer's best interest. Energy data is highly sensitive, especially when
enriched with Smart Meter readings and the resulting electric appliances and their usage as outlined in Issue 4. Once a customer
however terminates his contract, there currently is no way to delete this sensitive data – blockchains are not designed for this.
In addition to customer issues, there are also legal requirements coming from the GDPR (General Data Protection Rules) effective
throughout the EU, which enforces deletion of private data once it is not needed anymore. Violations of this law can lead to fines
up to 4% of a company’s global annual revenue, which can be hundreds of millions of dollars for large energy corporations. This
was also the focus of several press articles11.
The latter doesn’t solely apply to the energy sector, but to any regulated industry, making it a highly relevant barrier of existing
blockchains and thus, a large use case. Therefore, any blockchain that serves as an infrastructure of a regulated industry needs to
support data deletion. Most solutions today that support deletion of data only store the references in the blockchain, with the real
data itself stored off-block. When private data needs to be deleted, the on-block reference is kept unchanged, but the off-block
data is deleted. The problem with this approach is that any smart-contract execution needing private data requires access to the
off-block resource, defeating the purpose of a blockchain.
11
See e.g. https://iapp.org/news/a/blockchain-technology-is-on-a-collision-course-with-eu-privacy-law/
COMPARISON WITH EXISTING CHAINS

Lition conducted intensive discussion with leading experts to overcome the issues outlined in the previous section. After researching
dozens of different chains, Lition found many solutions to almost every individual issue, but no integrated, coherent solution:
Hyper-
Lition Ethereum EOS NEM Cardano NEO ICON EWF Polkadot
ledger
Functionality
Provides VM to execute
   -      n/a
smart contracts
Public       - - - 
Private  - -  - -    
Possibility to delete data  - - - - - - - - n/a
RBFT/Akq/
Consensus mechanism PoS PoW dPoS PoI PoS dBFT LFT PoA PoC
PoET
Productive 2019    tbd    Q2-2019 Q3-2019
Efficiency
Average Block time <3sec 10-20 sec 0.5 sec 60 sec - 15 sec - - - n/a
Cost/transaction
<0.01 34 - - - - 0.12 - - n/a
(average),USDct
Max tx/sec 25 100k 3k ND 10k 9k 3.5k - n/a
Figure 7: Comparison of blockchain infrastructure solutions
To provide a background to the outcome, one can segment the underlying 6 issues into the following groups:
 Light-client (#1), Costs (#2), Speed (#3), Accessibility (#5): As described in the previous section, there are many chains or
workarounds to address these issues. Already with the currently ongoing Hyperledger-implementation, Lition addresses
many of them. As many open-source implementations exist with a license allowing code re-use for commercial
applications, these are less-critical concerns.
 No private sidechain for private data (#4). Here many purely public (e.g. Ethereum) and purely private (e.g. Hyperledger)
chains exist. When both private and public data need to be stored, three potentially relevant options exist for a
commercial implementation. However, they all exhibit other concerns (see below), and none of them provide a solution
to delete data:
o ICON, a chain to connect public and private blockchains, was the prime candidate as a foundation for the Lition
energy ecosystem, but in intense discussions with numerous blockchain specialist including a joint discussion
that the founders had with ICON’s Lead Blockchain Architect in Seoul (see Lition’s twitter account for pictures
and more information), we could not apply the finance-oriented nature of the blockchain to the smart-contract
oriented nature needed by the decentralized applications of the Energy space.
o Polkadot is technically not a “blockchain” but rather a method to connect blockchains. The concept is very close
to the requirements by Lition, as they plan to connect private/consortium chains and public/permission-less
networks. However, due to a faulty implementation by their developer Parity Technologies, Ether valued at USD
150m is frozen forever12. This is the majority of their funding, making it unclear if they have sufficient funds to
ever make it to production as planned for Q3 2019. Also, reputational risks make it difficult to recommend a
solution with this track record to the risk-averse companies in regulated markets like the Energy sector.
o Energy Web Foundation is an open-source blockchain which is designed for the energy sector with support for
light clients and confidential messages. It is driven by large corporations such as E.On, PG&E or Shell and caters
to the needs of these large conglomerates, therefore prolonging the shortfalls of these inefficient markets
which caused the excess profits of these conglomerates dominating the markets. EWF relies on a Proof-of-
Authority consensus mechanism (with authority given to the conglomerates) which defeats the open nature of
a blockchain. As it is a fork of the Ethereum mainnet, it has many of the Ethereum-related shortcomings
including no ability to have both public and private sidechains or to delete data. Also, unlike Lition, it has no use
cases that have been brought to commercial production, let alone in mass markets.
THE PROPRIETARY LITION BLOCKCHAIN – CO-DEVELOPED WITH LEADING TECH COMPANY

Given the lack of existing solutions to satisfy the requirements experienced in a real, commercially productive blockchain
application, Lition has designed a proprietary blockchain solution. Working together with a globally renowned leader in
development of advanced technology and exclusive advisory of the Chief Innovation Officer of SAP, this new blockchain is now
being implemented to solve the shortcoming described in this document.
Lition presents the design for a blockchain network and minimum requirements for a governing agreement among a privileged
subset of the nodes’ operators to ensure that sensitive and private data can be handled and securely deleted on demand and 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. Lition also proposes a novel approach to solve the security issue of private data (and private
transactions) in a blockchain technology by providing a technique to publicly prove the correctness of a transaction involving private
data without revealing the private data. This proof is not fully trustless but is of a probabilistic nature and similar to non-interactive
zero knowledge proofs (NIZKPs).
12
https://www.trustnodes.com/2017/11/07/ethereums-parity-hacked-half-million-eth-frozen
0x000…
Pub lic n od es (an y n od e)
Public Nodes (as m iner) Store blinded data Blockchain Integrity

• Min e t h e m ain ch ain an d (hashes) in side- or Nod es can verify t h e in t egrit y
User 0-n sid e ch ain s m ain-blockchain of sid ech ain w it h out kn ow in g
• Use Proof-of-St ake p rivat e d at a, an d t h us can
Met ad at a con sen sus Typ ical d at a (m ain -ch ain ):
t rust out com e:
• Calls sm art cont ract s • Execut e Sm art Con t ract s • In t egrit y of in d ivid ual TX is
• Token b alan ces
via REST on (p ub lic) sid e-ch ain an d verified t h rough
• Sid ech ain list
receive t oken s as rew ard en d orsem en t s b y
• Pays for gas of SC • St aked t oken s
• Op en for an yon e p rivileged n od es
from a w allet • In t egrit y of p rivat e
Sam p le d at a (P2P t rad in g):
b lockch ain is verified
• Prices for grid & p rod ucers
t h rough h ash ch ain or 2n d
• P2P t rad es (w it h out
level en d orsem en t s
usage)
Act or
Tran sact ion
• Creat es and ow n s 0-
n sid ech ain grou p s 0xABC…
(p ossib ly for p rivat e
d at a) Privileged n od es (as n am ed in in vocat ion of sm art con t ract )
• Sp en d s t oken s
d ep end in g on
Privileged Nodes
sid echain size Store data content
• Min e an d execut e 1-n in a distributed key- Store tx hashes and
• Pu sh es p rivat e sid e ch ain s
n ew /u p d at ed sm art value store endorse-m ents in side-
• Need p erm ission b y ow n er ("unhasher") chain
con t ract s t o h is of each sid e-ch ain • Allow s verificat ion of in t egrit y b ack
kn ow led ge grou p • Have access t o p rivat e d at a Sam p le d at a (P2P t rad in g): t o Gen esys b lock of sid ech ain
• Can b e ap p • Sign up t o Term s of Service • Billin g d et ails • En d orsem en t s (h ash an d
d evelop er or u se- an d can d elet e d at a • En ergy con sum p t ion
Dat a con t en t • En d orse t ran sact ion s an d • En ergy ap p lian ces in
en d orser‘s sign at ure) are m ad e
case sp ecific, e.g. p ub lic
vouch w it h st aked t oken s h ouseh old
p ow er p lan t , grid
• Vouch for law ful • …
op erat or, ret ailer, et c. b eh avior w it h st aked t oken s Hash es of d elet ed d at a rem ain
Delet ed d at a is rem oved
1
Figure 8: Lition Blockchain infrastructure concept

The fundamental concept is based on a Proof-of-Stake consensus mechanism with two types of nodes: Public nodes and privileged
nodes. The public nodes are permission-less and have access to the mainchain any public sidechain. They don’t have access to the
data of private sidechains, but they have access to the transaction hashes and endorsements provided by privileged node. This
allows public nodes to probabilistically verify the integrity of private data without knowing it. Public sidechains can be subscribed
by any node, but nodes willing to mine private sidechains and thus see private data need a special permission by the owner of the
sidechain (actor), making them to privileged nodes. To ensure data is truly deleted, such nodes operating private sidechains will
also need to agree to terms of service. They require the nodes to carry out data deletion requests needed by legal requirements on
data privacy rules, for example.
While the functional requirements addressed by this blockchain are derived by the shortcomings described earlier in this chapter,
Lition provides the technical description in a separate, technical whitepaper. It is confidential, caters for the technically interested
reader and also provides the fundamentals from current research.
The technical white paper is in the final stage of completion and will be available at www.lition.io/technical-whitepaper.
TOKEN USE IN THE BLOCKCHAIN

To ensure that the Lition Blockchain infrastructure stays open and efficient, we have introduced a token-based concept. Its prime
uses are to pay for transactions, staking for correct network behavior and the creation of private sidechains that distributed
blockchain applications (DApps) can use.
Figure 9: Token usage

The details on the three usages are:
Transaction execution
This can be mostly compared to “Gas”, meaning any transaction or smart contract execution requires a specific amount of
tokens. The amount of tokens needed is deterministic, similar to Ethereum’s Ether-Gas function13. Due to the Proof-of-Stake
(PoS) consensus mechanism, the overall costs of transactions and smart contract executions are more than 60 times lower
than in Ethereum with USD 0.01 instead of the current USD 0.60 experienced by Lition.
The transaction costs are distributed upon mining of a block, similar to Ethereum. However, no new tokens are spawned
upon mining, leading to a constant and limited total amount of tokens.
Staking consensus
Based on the PoS consensus mechanism, tokens are needed for nodes to guarantee the right node behavior in every private
and public sidechain the mainchain. In a PoS consensus mechanism the right to create the next block is chosen based on the
number of tokens held and their age. This eliminates the high transaction costs by traditional PoW approaches like Bitcoin or
Ethereum. As PoS has been widely researched and described in great detail, we refer to authors such as King and Nadal14 for
further details.
Private Sidechains
The blockchain is designed so that any developer can quickly launch its application on the network and create its own
sidechain(s) to store any public or private data a developer may need. The only thing a developer needs to do is spend a small
amount of tokens to initially create a sidechain, that is given as an incentive. By that, nodes subscribe and therefore mine it.
Once a sidechain is created, the transaction fees will provide an incentive for nodes to keep mining it. Additionally, every
sidechain needs to pay a “rent” in tokens that increases with storage size of the sidechain. This is given as extra incentive to
the nodes mining it and ensures that even in low-transactions the chain will still continue to operate. Otherwise, these low-
transaction sidechains would eventually starve due to too few incentives.
13
https://ethereum.gitbooks.io/frontier-guide/content/costs.html
14
https://peercoin.net/assets/paper/peercoin-paper.pdf
Besides these described use cases, a developer can also use the token for many other applications, as it can be freely traded and
moved between accounts. Additional use cases include for example discount or reward-mechanisms.
Due to the widespread use of tokens, we anticipate a relevant value growth. Already in today’s P2P trading application, the token
value increases with every customer, every powerplant and every daily energy transaction. With the further use cases described in
this whitepaper, this will further grow with every use case adopted by an industry partner (with multiple already signed and in the
pipeline as described in the growth section), every new use case, and every new developer using the Lition Blockchain for his
distributed application.
THE LITION
ENERGY ECOSYSTEM
THE CONCEPT
The Energy industry is a well suited application to benefit from the characteristics brought by blockchains, such as immutability and
direct connection between peers. Many articles have stated that Blockchain has the potential to disrupt the energy sector, e.g.
PwC15 describes multiple use cases in their papers. The opportunities are widely recognized, but so far there has only been progress
on a pilot scale, e.g. by the Brooklyn Microgrid16 which tests how blockchain technology can be used to effect direct neighbor-to-
neighbor sales of solar energy. Other P2P-energy projects in MVP or pilot-scale include WePower, Powerledger, RestartEnergy,
Verv or Enosi. Other applications, like blockchain-based billing of electric vehicle charging stations with Motionwerk, or certificate
of origin trading like SolarCoin for Electrify.Asia – are all in the MVP/Pilot stage.
This has changed, with Lition pushing the frontier to commercial readiness with a proven Peer-to-Peer energy trading application
with real customers and powerplants. Lition is therefore uniquely positioned to expand into additional use cases and create “The
Energy Ecosystem”.
Figure 10: The Lition Energy Ecosystem

Lition will develop the Energy Ecosystem together with partners such as energy retailers, electric vehicle charging station providers,
Smart Meter manufacturers and grid companies. Each of them will be connected to the worldwide energy ecosystem enabled by
15
https://www.pwc.com/gx/en/industries/assets/pwc-blockchain-opportunity-for-energy-producers-and-consumers.pdf
16
www.brooklynmicrogrid.com
the Lition energy blockchain. Lition has already signed and lined up multiple international partners for this, with details in the
growth chapter later in the whitepaper.
USE CASE FOR SMART METERING AND ENERGY-DATA DRIVEN RECOMMENDATIONS

End-to-end transparency is Lition’s guiding theme of the core P2P-trading use case. By using the blockchain-based Lition Energy
Exchange platform, consumers can now choose their preferred renewable energy producers. While this novel transparency on the
production side is great, we want to take it one step further and also bring this transparency to households and businesses. This
enables any energy retailers and Smart Meter providers using the technology to offer additional services to their customer base.
THE SMART READER MAKES A SMART METER OUT OF … SO YOU KNOW WHEN AND WHICH DEVICE CONSUMES
OUR FUSE BOX HOW MUCH
The SmartReader makes the household smart Energy supplier using the Lition Energy Ecosystem
• The depicted SmartReader Box is installed next to your • Bundles the product with its blockchain-based energy tariff,
home’s fuse box and connects to the internet offering:
• Through current clamps the device measures energy flow • An itemized energy bill by device
several thousand times per second to detect appliances • Time-Sensitive tariffs
• No more down payments – only pay what is used
• All smart home benefits provided by the stand-alone box
Figure 11: Illustration of the Lition Smart Reader App

This is achieved by installing a smart reader, a small device connected to the internet via Wi-Fi or cable connection, next to the
customer’s fuse box. A smart reader is a Smart Meter at a significantly lower cost. The smart reader measures energy consumption
and sends the data privately to the blockchain, effectively providing the same functionality as a Smart Meter at a fraction of its cost.
Using a mobile app, customers are able to observe a detailed real-time visualization on the energy usage of all their household’s
electric devices by utilizing energy disaggregation. A customer can detect which appliances are currently active, e.g. washing
machine, TV, fridge, etc. and review statistics on the overall energy consumption in kWh. The app further provides various smart
home features, like a safety alert when you’ve kept your oven on for too long or a security alert if a device is switched on, e.g. a light
even though you’re not at home.
While these features are useful, bundling them with blockchain-based energy supply contracts offers additional benefits. By using
a Smart Reader (equivalent to a Smart Meter but installed in the fuse box) functionality to identify energy consumption of individual
devices of a household, a supplier using this Lition Blockchain based technology can offer an itemized monthly energy bill. What
this means in practice is that instead of an estimated monthly down-payment based on annual traditional meter readings,
customers are charged the exact amount as measured, and they benefit from a further break down on the bill for each detected
device. This will provide full transparency to consumers that want to know their exact monthly cost per device. Furthermore,
consumers will be able to replace high energy-consuming devices with more energy-efficient appliances by using our data-driven
approach. Such analysis and smart recommendations are additional services to provide in the future.
There is another major benefit of having a smart reader. By accumulating the data received from thousands of smart readers in
Lition’s customer households, energy retailers will be able to offer time-sensitive tariffs to customers. With these tariffs, customers
can save costs during off-peak hours e.g. in the very early morning hours. These tariffs will also enable demand-shaping, as
customers will have an incentive to relieve the grid in peak times and shift their load to off-peak hours. In Germany, for example,
only high-consumption customers over 100.000 kWh annual consumption can benefit from lower off-peak prices as of now.
Moreover, reasonable product recommendations (e.g. new fridge or AAA LED-Bulbs due to high costs) based on various partnerships
are further potential revenue streams while at the same time providing customers with helpful information and recommendations
for saving energy and money. This global marketplace for energy-data-driven, AI-generated product recommendations gives customers
unique insights for the right appliance decisions.
In summary, the benefits are:
Smart Affordable Easy
• Identifies your appliances • Benefit from low market prices • Pay only energy that has
and their energy during off-peak hours actually been consumed
consumption
• Save up to 20% on house hold • Innovative App
• Receive product energy consumption - additional • No more meter reading
recommendations based on to the 20% cost saving of the • Optional: Measurement of solar
your energy-data Lition tariff production
• Full energy cost control • Device and its installation

through a certified electrician
included in rate
Figure 12: Lition Smart Reader Benefits
Just like with Peer-to-Peer energy trading, Lition Energie in Germany is a frontrunner in adopting this use case and has already
successfully integrated a Smart Reader that provides the daily energy quantity for blockchain-based energy trading. The additional
benefits such as device disaggregation are currently being implemented and will be available to the consumer in the near future.
Lition has realized this together with a Smart Reader pioneer (company to be announced). The supplier of the Smart Reader device
and developer of the AI-based algorithms for device detection is currently the market leader in disaggregation technology.
ELECTRIC VEHICLES
Worldwide Solution for E-mobility
Lition aims to change the worldwide energy supply and billing for e-mobility. The blockchain technology and the underlying Lition
Token will become a standard for charging electric vehicles and will highly impact worldwide desirability and usage of e-mobility.
Background and Challenges of E-mobility
Due to environmental problems and changes in global outlook on e-mobility the market is rapidly growing. Based on manufacturers’
launch plans and expected penetration rates, the market potential for electric vehicles is projected to reach approximately USD 340
billion by 202017, which is equivalent to 10 to 15 percent of the global automotive market in that year. Global plug-in vehicle
deliveries have reached 1.25 Million units in 2017 already, resulting in a sales volume 57% higher than in 201618. The growing units
of electric vehicles require an increasing number of charging stations and they also increase the demand for electricity; the average
electric vehicle consumes nearly as much electricity as a four-person household a year. In other words, electricity consumption per
household doubles whenever an electric vehicle is bought.
With respect to the currently existing e-mobility infrastructure, drivers of electric vehicles face three major issues when charging
their vehicles:
• Different payment systems for e-mobility solutions often make charging and payment for electric vehicles
unnecessarily complicated for customers.
• Pricing is expensive and non-transparent. Prices of electricity vary by more than 100% dependent on the individual
charging station.
17
www.atkearney.de/documents/10192/245028/eMobility-The_Long_Road_to_a_Billion-Dollar_Business.pdf/5f3b8f4d-1c68-41c2-8b92-8453d5561b05
18
www.peakresources.com.au/news/global-plug-in-sales-for-2017-q4-and-the-full-year-prelim/
• As previously mentioned, buying electricity at charging stations exhibits the same drawbacks as it involves high-
priced intermediaries and lacks transparency. Again, large energy suppliers are hoarding the profits.
Contrary to many customers’ beliefs, green energy charging stations don’t necessarily use green energy but often rely on traditional
local and nuclear energy sources. Suppliers can free themselves of their dirty image by utilizing easy-to-access and cheap green
certificates, which is not a sustainable solution. Thus, an electric vehicle can be as pollutive as driving a dirty combustion engine.
Lition’s Worldwide Strategy for E-Mobility
The Lition Energy Ecosystem will solve these problems with its unique and globally adaptable blockchain approach. Lition is already
partnering with a leading charging operator with whom the use case will be developed and then deployed to their 1.500 charging
stations.
The underlying blockchain infrastructure will be the basis for this, which will result in the following benefits for the consumer:
Convenience Cost Smart
• Can charge their electric • Use existing record-low tariff • Use their individual smart
vehicles at any charging for charging and thus will be contracts within our end- to-
station able to save money when end energy exchange
charging platform to charge their
• Use their producer of choice
electric vehicles
for charging their EV. This • One bill for e-mobility and
may be the same producer electricity • Can drive with genuine green
they already selected for energy instead of coal or nuclear
their electricity at home or a • Customer also earns money energy
completely new one. if car is used as live
electricity storage
Table 3: Benefits for Consumers
SMART GRIDS
So far, Lition has commercialized one use case (P2P energy trading) and is actively developing three other use cases (e-mobility,
Smart Metering and data recommendations) as described above. On top of this, there are multiple additional applications from
within the energy sector, with smart grids being one of the most relevant.
With the direct connection between customers and producers achieved through the P2P trading use case, transmission and
distribution grid companies already get additional insights into their power flows. On top of this, the blockchain can support in
various areas:
 Time-of-use pricing: To reduce demand during the high cost peak usage periods, communications and metering
technologies inform smart devices in the home and business when energy demand is high and track how much electricity
is used and when it is used. It also gives utility companies the ability to reduce consumption by communicating to devices
directly in order to prevent system overloads. For example, a utility could reduce the usage of a group of electric vehicle
charging stations or shift temperature set points of air conditioners in a city. To motivate them to cut back use and
perform what is called peak curtailment or peak leveling, prices of electricity are increased during high demand periods,
and decreased during low demand periods. It is assumed consumers and businesses will tend to consume less during high
demand periods if it is possible for consumers and consumer devices to be aware of the high price premium for using
electricity at peak periods. This could mean making trade-offs such as cycling on/off air conditioners or running
dishwashers at 9 pm instead of 5 pm. When businesses and consumers observe a direct economic benefit of using energy
at off-peak times, chances are high they will include energy cost of operation into their consumer device and building
construction decisions. Hence, they become more energy efficient. As the pricing is already defined by the blockchain-
based P2P-trading, time-based pricing is a logical and easy extension.
 Distance-pricing: Applying the same principles as for time-of-use pricing, distance between the power plant and the
consumer can be factored into the customer pricing offered through the blockchain solution. If a customer chooses a
power plant close by, he can save by paying a lower price compared with a powerplant further away.
 Reliability: The smart grid makes use of technologies such as state estimation19, that improve fault detection and allow
self-healing of the network without the intervention of technicians. This will ensure a more reliable supply of electricity
and a reduced vulnerability to natural disasters. A blockchain provides the necessary infrastructure for this, including a
reliable source of underlying data and verifiable transactions to resolve issues.
 Security: Grids using the Lition Blockchain will mitigate the vulnerability to terrorist or cyberattacks because the data and
transactions are highly secured due to the robust and tamper-proof nature of the blockchains. With worldwide growing
cyberattacks, experts rate these features as very important in the future.
 Bi-directional energy flows: Next-generation transmission and distribution infrastructure will be better able to handle
possible bi-directional energy flows, allowing for not only distributed generation such as from photovoltaic panels on
building roofs, but also the use of fuel cells, charging to/from the batteries of electric cars, wind turbines, pumped
hydroelectric power, and other sources. Classic grids were designed for one-way flow of electricity, but if a local sub-
network generates more power than it is consuming, the reverse flow can raise safety and reliability issues. A smart grid
aims to manage these situations that are facilitated by the P2P-trading solution on the blockchain. As the underlying
energy flows are already contracted on the blockchain, managing also the physical flows on the blockchain is a logical
next step to avoid data duplicity with a single source of truth.
CERTIFICATES OF ORIGIN
The Certificate of Origin (also Guarantee of Origin) is an instrument that labels electricity from a specific source, e.g. a specific power
plant or a certain type of renewable energy generation. With this label, the customer can be certain on the origin of his electricity.
These certificates are currently defined e.g. in Europe through legal means (Directive 2009/28/EC20) which precisely define the
instruments evidencing the origin of electricity generated from renewable energy sources. In operation, a GO is a "green label" or
"tracker" guaranteeing that one MWh of electricity has been produced from renewable energy sources. GOs are traded. When a
company buys GO, as documentation for the electricity delivered or consumed, the GO are cancelled in the electronic certificate
19
Yih-Fang Huang; Werner, S.; Jing Huang; Kashyap, N.; Gupta, V., "State Estimation in Electric Power Grids: Meeting New Challenges Presented by the Requirements of the Future Grid," Signal Processing
Magazine, IEEE , vol.29, no.5, pp.33,43, Sept. 2012
20
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0095
registry. This single standardized instrument makes it possible to track ownership, verify claims and ensure that GO are only sold
once and that there is no double counting.
While this works in practice, it is a highly inefficient process with many intermediaries such as the energy producer, its energy
reseller with market access, the exchanges on which certificate of origins can be traded, the distribution grid operator obtaining
the certificate from the producer, and the transmission system operator invoicing it to the energy retailer, who eventually bills it
to the customer. They all need to trust each other, and they all need to communicate.
This is a conventional use case on which the trustless, open nature of blockchains, together with asynchronous encryption at the
point of origin (the power plant) can simplify a process by taking out the many middle men. As customers are already trading energy
with producers with the Lition P2P energy exchange, it is an easy extension that can also scale globally and the certificate of origin
does not have to be linked to the physical energy delivery.
GROWTH
OVERALL MARKET GROWTH

The electrical energy sector has potentially not been one of the most innovative so far, but it’s sheer size is astonishing: with a
market capitalization of USD 2 trillion just for electricity alone it is twice the size of the car sector. The reason is simple: Everyone
in the developed world needs electricity, and considering global population growth and countries' development, along with electric
vehicle deployment in highly-industrialized countries, the market is poised to grow further.
According to forecasts by the International Energy Agency, the world population is expected to grow from around 7.5bn in 2016 to
9bn in 2040. These growth rates affect our global energy systems as demand for energy will rise. This goes along with an expanding
appetite for energy in many ways, especially since more and more electrified appliances are being installed in the average household
and business. According to the 2017 edition of BP’s Energy Outlook, global annual energy demand will increase by about 30% until
2035, mostly driven by increasing prosperity in developing countries, already taking into account the gains in energy efficiency over
the next decades.
The increasing demand on the one hand and global initiatives to reduce the carbon emissions on the other create an enormous
need for an innovative Peer-to-Peer (P2P) energy transaction platform and other use cases provided by the Lition Energy Ecosystem.
Among non-fossil fuel energy sources, renewables are gaining market share rapidly, from around 3% today to a projected 8% by
2035, even overtaking nuclear energy in the early 2020s.
Along with world population growth and development, the growth in vehicle demand for both commercial and passenger cars will
double from around 1.2bn today to 2.4bn by 203521, according to the BP Energy Outlook. Electric Vehicle (EV) owners i.e. non-
stationary electricity users are further driving up electricity demand across the globe. EVs are forecasted to reach price parity with
regular cars powered by combustion engines by 2025, largely due to a rapid decline in battery prices. This drop will trigger rapid
market growth, assuming that infrastructure bottlenecks are solved simultaneously. Studies of the deployment of EVs range
between 15 to 100 million by 203022.
HOW THE ENERGY ECOSYSTEM EXPANDS

Lition is a technology provider that offers its solution to end-users and energy companies. Since its founding in 2017, Lition has
however experienced first-hand that solutions are only accepted if they are proven. Earlier on, when Lition developed the MVP in
Late 2017 and was talking to energy retailers to adopt the blockchain-based Peer-to-Peer energy trading solution, the willingness
to seriously cooperate was very low. The energy sector is very conservative, as for decades their prime concern was stable delivery
of power without outages. But today, the world has progressed, and Lition realized energy companies are only willing to seriously
consider new technologies once a demonstrated, proven solution with real customer benefits is presented.
That’s what Lition did, by bringing the Peer-to-Peer trading use case to life through Lition Energie in Germany as the first local
energy provider to use the technology. Germany is an ideal market for this proof of concept, given its particularly complex
jurisdiction and regulations. Having successfully launched in Germany, expansion to other markets should be more straightforward.
With this commercial readiness, the desire of the conservative energy companies to cooperate has highly increased. It is now about
integrating a tested, working product into their existing customer base.
Next to a proven solution, a successful fast and sustainable rollout into regulated industries also requires trust. This is a major
advantage of the new innovative blockchain infrastructure as - in contradiction to nearly all existing blockchains – it is backed not
only by a start-up or by a conglomerate of old industry players with hidden agendas, but under exclusive advisory of SAP’s Chief
Innovation Officer.
21
www.bp.com/content/dam/bp/pdf/energy-economics/energy-outlook-2017/bp-energy-outlook-2017.pdf
22
www.iea.org/publications/freepublications/publication/GlobalEVOutlook2017.pdf
Figure 13: Expansion approach for Lition

This is the growth path of Lition, which offers the Lition Energy ecosystem – i.e. a collection of blockchain applications running on
Lition’s proprietary blockchain – to energy companies and users.
Depending on the use case, these are:
 Energy retailers, that can offer their customers USPs and lower prices through P2P trading
 Consumers, that next to the existing 20% cost reduction of P2P trading also experience further reductions with a grid
integration, better product-recommendations through an AI-based recommendation utilizing their appliances identified
by their Smart Meter and know the source of their energy with certificates of origin.
 Prosumers, i.e. consumers that also generate energy for example through a rooftop solar panel. They can now sell their
excess energy directly to fellow consumers through P2P trading.
 Power plants for Peer-to-Peer and certificate of origin trading, leading to higher returns for their energy and an ability to
differentiate themselves
 Grid operators, that can lower costs and reduce congestion with intelligent, blockchain-based grid planning and control
HOW THE BLOCKCHAIN CHANGES OTHER INDUSTRIES BEYOND THE ENERGY SECTOR
The features of the proprietary Lition Blockchain do not only apply to the energy market. While a faster transaction speed is needed
by almost any modern use case, especially the unique features such as the deletion of data or truly private data are required by
regulated businesses. As no other current blockchain can fulfill these requirements as outlined in the previous chapter, the Lition
Blockchain is the solution of choice for disruption of many additional use cases.
Together, these sectors aggregate to a market size not limited to the Energy sector (USD 2 trillion), but to any regulated market.
A selection of some of the potential applications is detailed in the section below.
The public/private deletable Lition Blockchain offers the solution for many mass market
applications
Healthcare
Currently, medical patient data such as diseases, illnesses, insurance details are all filed in different places. When a patient has to
settle insurance claims, he has to collect and file all of this data. With a blockchain solution, this highly sensitive information can be
stored on a private sidechain with access to doctor and insurance only and used for the claim process. After the claim is settled, the
patient can – with the Lition Blockchain – delete the data on the blockchain. Thus, patients’ privacy will be kept secure at all times
while a today complex process can be managed highly efficient.
Pharmaceuticals
In pharmaceutical data security in research, development, clinical tests and official approval by public institutions of new drugs is
crucial, as private patient data concerning illnesses, medication, or personal details such as age, gender, medical family history
needs to be kept absolutely confidential. However, the ability of accessing this information must be given at the same time.
Regulatory authorities like the FDA (Food and Drug Administration) require comprehensive and seamless patient information which
cannot be tampered.
With the Lition Blockchain confidential data will be stored on the private sidechain, giving access to involved parties to anonymously
accessing all necessary data over the blockchain. Private patient data will be deleted when no longer required. This would
significantly streamline and further secure the entire approval process of new drugs.
Enterprise Data Management

Research recently predicted that the rapid digitization of consumers’ lives and enterprise records will increase the cost of data
breaches to USD 2.1 trillion globally by 201923. As data exchange between enterprises is indispensable, privacy and security is more
than crucial. The Lition Blockchain is the first available technology that offers exactly the features needed to ensure privacy and
23
https://www.forbes.com/sites/stevemorgan/2016/01/17/cyber-crime-costs-projected-to-reach-2-trillion-by-2019/#6db226a73a91
security in this context. Confidential data is stored on private sidechains only accessible with private keys and deleted as soon as
the data is no longer required. The functionalities of decentralized data storage, limited availability of private data and highly
restricted access prevents data theft and sabotage.
Media
The growing usage and distribution of digital media, such as music, movies, books, etc. requires a transparent and secure system
concerning copyright protection and compensation on the originator’s side.
With the Lition Blockchain digital media can be stored on the originator’s sidechain. Originators’ details, specific information on
items (songs on an album, sources in an article, age restriction on movies, etc.) can be displayed in a private sidechain, along with
personal user data such as bank data to compensate the originator directly on the blockchain. Data regarding the compensation
(on purchase or rental) can be deleted on request. Thus, the Lition Blockchain would not only be able to secure copyright protection
in the internet age but also provide privacy and direct pay to originators.
Bond Finance
The multibillion market of corporate bonds requires large amounts of approvals (e.g. credit rating scores, balance sheets) and many
middle men (for settlement, custody, etc.). The Lition Blockchain enables decentralized storage of all prerequisites for a loan, plus
the automated issuance using a smart contract, taking out complexity which speeds up the process. After the bond has been issued,
the beneficiary company can delete (certain parts) of their private data. Bond financing can be fully described within the public/
private logic of the Lition Blockchain, representing a much faster, more reliable and much cheaper way for companies issuing bonds
around the globe.
Purchasing/Logistics
The infrastructure of the Lition Blockchain allows to publicly store material inventory data such as stock items, certificate of origin,
quantities, prices, manufacturers, complaints. Linking this information to a private sidechain with purchaser information can
automate payment procedures, increase efficiency on restocking, optimization of transportation, improvement of material quality
and better response to supply and demand. But, not all data in these processes are meant to be public; e.g. prices and demand can
be very confidential information to purchaser and sellers. Again, the advantage of the Lition Blockchain is the private public logic
of the blockchain.
Automotive
Odometer manipulation is a major issue in second hand car sales. Even in relatively safe countries like Germany, police estimate
odometer manipulation on 30% of all second hand cars sold, resulting in annual damages for insurers between 6 to 7 billion Euros24.
As odometer levels are classified as private data due to the connection to the car holder, they cannot be publicly stored, let alone
on a blockchain. With the Lition Blockchain there will be a solution in the future. Anonymous movement data can be stored on the
private sidechain, ensuring the privacy of the vehicle holder is being kept, while fraud protection on purchase is achieved through
the public availability of the car’s history.
Additional car details regarding accidents, repairs, etc. may also be shifted to a private sidechain and used to settle insurance claims.
Again, on the driver’s request, personal data is deletable when no longer required.
Travel
Common search engines for hotels, flights and rental cars operate as middle men between the customer and partners of the tourist
industry causing unnecessary additional costs on both sides.
24
https://global.handelsblatt.com/companies/protecting-used-car-buyers-651071
With the Lition Blockchain solution all offers can be stored on a public blockchain. The customers’ private information during the
booking process (date of travel, prices, bank data, etc.) is held on a private side chain, where payment procedures and travel details
are kept anonymous and secure. On request data can be deleted when no longer required.
Even if this was only a very brief and condensed description of potential use cases of the Lition Blockchain outside the Energy
Ecosystem it demonstrates the high potential of the Lition Blockchain as nearly unlimited in commercial and industry
applications.
INDUSTRY PARTNERS
Lition is backed by major industry players in the utility sector and specialized technology partners on a global level. These were
needed to achieve the milestones already met, but are also inevitable for the further growth and the many more use cases that are
feasible.
The current lead partners are the following:
Technology partner
SAP is a multinational market leader in enterprise application software, managing business

operations and customer relations with over 400.000 customers in over 180 countries and EUR
23.8bn in revenues at operating profits of EUR 6.9bn in 2017.
Energy partner Germany
GASAG is a leading utility with over USD 1bn in revenue and across the group over 1m customers.
Lition Energie has connected power plants of GASAG to Lition’s blockchain energy exchange, and
their operations are providing customer service to its customers.
We further benefit from the following additional technology, blockchain and token sale partners:
Table 4: Current technology, blockchain and token sale partners

EXPANSION PLAN WITH FUTURE INDUSTRY PARTNERS

Lition is actively in discussion with several energy companies to roll out the technology to them and thereby expand the Energy
Ecosystem.
Currently, these are:
Figure 14: Status of Energy Ecosystem deployment (as of July 2018)
MAJOR MILESTONES
Energy Ecosystem and App Blockchain Infrastructure
Q4 2017 - Forming

 Alpha version of P2P energy trading app
 Lition starts
 Initial fundraising
Q1 2018 – Building P2P Use Case
 Energy trading platform beta-test

 License as electricity supplier in Germany obtained
 First green power plants connected to Lition Energy Exchange
 First employees on board (4 internal and 6 external)
Q2 2018 – Commercial launch P2P Use Case
 Lition tariffs are available to mass-market (>41 million households)  Business requirements for blockchain infrastructure specified
 First customers connected (households and SMEs)  Design of technical blockchain architecture initiated
 Scaling up connected green power plants to 18 GWh in Germany  Technical advisory with SAP starts
 Integration of Smart reader use case
 Lition staff grows to 25 (internal and external)

 Lition representative office opened in China
Q3 2018 – Designing Blockchain & Ecosystem initialization
 Use case for electric vehicles piloted (with Chinese partner)  Technical whitepaper released
 Use case for P2P applied for energy retailing piloted (with Asian  Blockchain prototype
partner)
 Development with leading tech partner starts
 Leading energy partners onboarded
Q4 2018 – Testnet MVP
 Commercial readiness for electric vehicle charging use case (with  Testnet MVP ready
Chinese partner)
 Testnet Blockchain API
 Launch of time-sensitive tariffs for customers with smart readers
 Testnet Dev. Toolkit, Dev&Admin release
 Expansion to Asian partners with P2P use case
Q2 2019 – Testnet Release & Ecosystem growth
 Expansion of P2P trading use case also for large industrial clients  Testnet 1.0 Public release
 Launch of smart grid use case  First use cases migrated
 Launch of energy-data driven recommendation use case  DApp Partners onboarded
 Team Scale-Up
Q4 2019 – Mainnet Release & Ecosystem growth
 Growth of partner network within Energy sector  Mainnet 1.0 Public release
 First pilots of regulated industries outside Energy sector that deal  Testnet Update
with private data
 Large-scale use case migration
2020 – Mainnet Evolution & Cross-Industry expansion
 Large-scale marketing for ecosystem  Mainnet 2.0 Public release with full set of features
 Worldwide commercial, large-scale use cases of industries outside
of Energy (mainly Healthcare, Finance)
OUR TEAM
The leadership team of Lition and Lition Energie consists of top managers and entrepreneurs with a combined 100 years of relevant
experience. Not only have parts of the team been working together for more than 25 years, Lition Energie’s CEO and its board
member for technology are siblings; the CEO and the COO have been working together for more than 5 years.
LEADERSHIP TEAM
Dr. Richard Lohwasser

Co-Founder & CEO
Richard was born in 1983 and is an internationally-awarded blockchain and IT specialist. Richard started programming when he was
13 years old. At 15, he was fluent in 7 different programming languages. At 17, he developed and founded the start-up Clanintern,
with over 1 million page impressions per day and a Top-10 website in Germany. Later he completed a 5-year university program in 3
years, graduating as the top student in his class, after which he completed a 3-year PhD program in 1 year.
He has been a managing director at ExtraEnergie, one of Germany’s top 3 independent electricity supplier with about 700.000
customers in B2C & B2B, USD 850 million in revenues and USD 100 million in operating profit. At ExtraEnergie, Richard was head of
seven departments, making him responsible for about 350 employees out of the company’s 400 total staff. As the company’s
managing director he has created efficient processes, achieved milestones and reached sales targets that he now plans to
implement at Lition.
Before working at ExtraEnergie, Richard served as the youngest director in the history of Vattenfall, a company with USD 10bn in
sales and one of the four energy conglomerates dominating the German energy market. As the head of customer processes and IT
he was responsible for all of Vattenfall’s 3 million German customers.
Prior to his employment at Vattenfall, he was the engagement manager in the technology practice of McKinsey (McKinsey Digital),
a globally acclaimed strategy consulting firm where he helped clients in the utility and high-tech industry to grow, restructure and
be overall more profitable.
As of now, Richard has also founded 2 start-ups, one in collaboration with his brother Reinhard Lohwasser and Manfred Gabriel.
Richard lives in Hamburg and Berlin and holds his Ph.D. in economics/energy from the Technical University of Aachen, one of the
top 10 universities in Germany. Before pursuing his Ph.D. Richard was a graduate student in Computer Science at the University of
California, San Diego, USA and holds a graduate degree in Information Systems from the University of Göttingen, Germany. During
his academic career, Richard has been frequently awarded internationally based on academic merits and IT achievements. He has
been the recipient of a full-tuition scholarship at the University of California. Richard has also received scholarships from the
German state of Lower Saxony and e-Fellows. As a licensed pilot (PPL-A), Richard enjoys flying in his free time.
Dr. Kyung-Hun Ha
Co-Founder & COO
Kyung is a senior IT expert and programmer. In addition, he has been the founder of five start-ups in the tech and e-commerce
sector.
Kyung is a senior director at GASAG, a USD 1.4bn leading energy supplier in Germany with responsibility for online customer service
and systems as well as sales for existing customers. He was further responsible for all reporting, analysis and predictive projects for
the GASAG Group.
Prior to his engagement at GASAG, Kyung served as the director Online Capabilities at Vattenfall. Before working at Vattenfall, he
was the managing director of the Open Idea and Innovation Program for the European Union, and in this position directly reported
to the EU Commission in Brussels.
As a product manager for the Mercedes-Benz Bank he was responsible for their vans’ product management strategy development
and worked as a project manager for Daimler AG in the quality department for their M-, R- and GL-Class.
Kyung, who was born in 1981, lives in Berlin and holds a Ph.D. in IT (Summa cum Laude) of the ESCP Europe Business School, a top 5
Business School in Europe and also graduated with distinction in Business Administration and Systems Engineering at the Technical
University of Berlin, a top-ranking university in Germany. He also holds a Master of Business Administration (with distinction) of the
University of Maryland, a top 10 university in the United States. Kyung was frequently granted scholarships and awards throughout
his academic career.
Dr. Manfred Gabriel

Board Member Business Development
Manfred is one of the founding partners of ADVISUM, a Berlin-based investment firm founded in 2001. He developed, raised,
invested, and managed own investment funds for institutional investors with a volume of more than USD 700m. Manfred has
invested in more than 100 companies with a combined revenue of more than USD 7bn and more than 35.000 employees. He has
been responsible for an investment volume of more than USD 1bn until today. In addition, Manfred has launched five start-ups,
one in collaboration with Reinhard and Richard Lohwasser in 1998.
Before founding ADVISUM, he was a managing partner of GCI in Switzerland, a now stock-listed investment firm. Before that,
Manfred served as an account manager at Cap Gemini, where his responsibilities were focused on growing and restructuring
companies in the technology, automotive and financial industry, with clients including Deutsche Bank, Daimler-Benz, BMW AG and
Citigroup.
Manfred, born in 1965, lives in Germany and holds a Ph.D. in Business. He graduated in Business Administration from the University
of St. Gallen in Switzerland, one of the top 3 business schools in Europe.
Jan Wiedenhaupt
Board Member Legal/Finance
Jan has been a founding partner and managing director at ADVISUM since 2001. He has been developing, investing and managing
own investment funds for institutional investors with a volume of more than USD 700m. He has invested in more than 100
companies with a combined revenue of more than USD 7bn and more than 35.000 employees. He has been responsible for an
investment volume of more than USD 1bn until today. Jan has also been a founder of four start-ups.
Before that, he was a member of the management board of GCI Management Germany, a now stock listed investment firm.
Previously, he also served as an engagement manager at Cap Gemini where he was responsible for clients like Deutsche Bank,
Deutsche Telekom, Daimler-Benz, BMW AG, and other firms in the financial, technology, and automotive sector.
Born in 1968, Jan currently lives in Berlin. He graduated in Business Administration and Engineering at the Technical University of
Berlin, a top 5 German university.
Reinhard Lohwasser
Board Member Technology
Reinhard has been a partner at ADVISUM since 2006. He manages funds worth more than USD 700m and more than 100 companies,
with a combined revenue of more than USD 7bn and more than 35.000 employees. As of this day, Reinhard has been responsible for
an investment volume of more than USD 400m. He has been a founder of three start-ups, one co-founded with his brother Richard.
Previously, Reinhard has also worked for Lucent Technologies where he served in various top management positions. He was closely
involved in Lucent’s activities in Shanghai, China, and led the global product management team holding the international profit and
loss responsibility for the worldwide leader in optical multiplexer. Reinhard also served as an appointed member to the German
national chamber of commerce’s telecommunicationscommittee.
Prior engagements include a consultant position at Cap Gemini, GCI Management, and at Lockheed Martin, USA, where he worked
in the field of atomic physics.
Reinhard, born in 1971, lives in Germany. He completed his Master’s degree in Physics from the Ludwig-Maximilians University in
Munich and holds an MBA degree (full time) from the Pennsylvania State University, a university ranked in the top 10 in the United
States.
ADVISORS
Dr. Jürgen Müller

SAP Chief Innovations Officer
Jürgen holds a Ph.D. in IT Systems Engineering from the Hasso Plattner Institute where he was co-representative of Professor
Plattner’s research chair at the Hasso Plattner Institute (HPI) for Software Systems Engineering, University of Potsdam, Germany.
Besides numerous teaching activities, he contributed to several research projects in the area of In-Memory Data Management. He
had Professor Hasso Plattner as supervisor and spent significant time in China during his business informatics studies.
He is Chief Innovation Officer of SAP, the world’s largest maker of business software. SAP is a German-based multinational software
corporation producing enterprise software to manage business operations and customer relations and has over 400.000 customers
in over 180 countries and EUR 22bn in revenues.
Jürgen has global responsibility for 4.000 employees, leads the innovation across SAP and advises the executive board on all
innovation-related topics. Being responsible for innovation he has a deep understanding and expertise of blockchain technology.
As our chief advisor for innovation and blockchain technology, he assures Lition develops innovative, customer- centric and highly
profitable solutions. Jürgen is working closely with our Co-Founders, CEO Dr. Richard Lohwasser and COO Dr. Kyung-Hun Ha to plan
and implement future business strategies.
Kelly Ford
Business Angel, previously
- N26 CMO
- PayPal CMO for Germany, Austria, Switzerland
Kelly is a serial international entrepreneur with 28 years of international marketing and strategy experience including 2 venture-
funded tech startups (SiteAdvisor and Hunch) with successful exits (to McAfee and eBay). Most recently, Kelly served as Chief
Marketing Officer at leading European mobile bank N26. During his marketing leadership, N26 became one of Europe’s most
successful FinTechs, expanding from 2 countries to 17, growing its customer base 12x to more than 1 million, and raising in excess
of USD 200m in venture capital.
Before N26, Kelly was CMO for PayPal in Germany, Austria and Switzerland and Head of Marketing for eBay New York. His early
career included 8 years in international brand management at the iconic Campbell Soup Company as well as several years in
boutique strategy consulting to Fortune 500 clients. Kelly has an Electrical Engineering/Computer Science degree from Stanford
University and an MBA from INSEAD.
Kelly’s deep experience in brand building, performance marketing and international growth strategy will be an invaluable asset as
Lition builds a trusted consumer brand with global presence.
* More advisors to be announced soon

TECHNOLOGY TEAM
Dr. Marco Borghesi Artur Basak

Lead Backend Developer Lead Frontend Developer
Marco holds a Ph.D. in Energy Engineering and an EMBA Artur holds a B.A. in Computer Science. He is an
from Kellogg-WHU, a top-notch program. He is a senior outstanding specialist with strong skills in front end
venture developer and founder of various start-ups, such as development and deep knowledge of a vast range of
Aldabra and OEEX. Marco has more than twenty years of technologies. Artur started to program from the 5th grade.
experience in product and business development, with Currently Artur is a Fullstack Developer with an impressive
profound expertise in energy markets, cleantech, blockchain number of successfully implemented projects.
and IT. He consultants leading energy suppliers in blockchain Furthermore, Artur is a great programmer and lead
technology. Marco commits part of his free time to support software developer at *Instinctools. Artur doesn’t stop at
young entrepreneurs and is a mentor in accelerator the reached level and keeps mastering his skills day by day.
programs such as the Rockstart Energy accelerator. As a lecturer and trainer he enjoys to share his profound
knowledge.
Nastassia Miatselitsa Aliaksandr Zimakou

IT Project Manager Blockchain & Frontend Developer
Nastassia has an extensive academic background. After her Aliaksandr started his career path with getting practical
studies she started to work on various IT related topics in the experience in Backend development. Thanks to an
sales department. After successful delivery, she moved impressive number of implemented projects on various
quickly into the project management position for domains, Aliaksandr developed a strong skill set in
*Instinctools clients. As a Project Manager her strength lie in Frontend, Fullstack and Blockchain development.
facilitation skills, agile approaches, time and resource Aliaksandr is very enthusiastic about studying new
management, as well as providing technical expertise. technologies, such as Ethereum ERC20 and learning new
Nastassia is very fond of blockchain technology and programming languages. He quickly improves hard and soft
cryptocurrency projects in the renewable energy sector. skills, being able program and lead sophisticated projects.
He is also an early investor in bitcoin.
Vladislav Nickulcha Jan-Patrick Schulz

Blockchain & Frontend Developer UX/UI Expert
Vladislav has many years’ experience in software Jan has a degree in communication psychology. He started
development. He started his career as a Frontend developer his career as a consultant in communication planning for
still being a student in Information Management and is now multinational clients in DACH and Eastern Europe at
mastering his professional level in the blockchain initiative media GmbH. Lately, he solely focuses on user
development. The number of technologies he knows on a insights driven digital product development. He
professional level is constantly increasing. Working for researches, designs and evaluates high end digital user
*Instinctools Vladislav participated in more than 10 major experiences. He is a professional user researcher, product
implementation projects and got the priceless experience of designer and innovation facilitator with 6 years’
communication with people all over the world. experience in UX consulting in the energy sector and
across various other markets at eparo GmbH and
additional freelance engagements.
OPERATIONS TEAM FROM BAS (GASAG GROUP)
Sina Garohn Paul Otto

Energy Billing Lead Manager Controlling
Sina did her dual studies in the telecommunication sector Paul has a Master’s degree in Business, with a special focus
with Deutsche Telekom AG. Soon after she moved to the on controlling and sales. After his studies he worked for
energy sector in which she has been working for the GASAG Vattenfall, a leading multinational energy conglomerate.
Group in various positions for almost a decade. She is an He is now working for the GASAG Group since many years.
expert in the energy market and operational processes. Her In total he has more than ten years of work experience in
main field of expertise are billing, controlling and team the energy sector, covering a wide range of expertise in
leadership. Sina is a well-recognized change, being B2B sales and financial controlling. As a department
responsible for continuous improvement, stakeholder manager for controlling Paul has great leadership skills, but
management, process optimization and quality assurance. also extensive knowledge regarding financial data
Sina is highly motivated applying blockchain smart contract analytics.
billing solutions.
Sven Lewerenz Marco Radtke

Manager Digital Services Energy Billing Specialist
Sven holds a degree in Telecommunications and started his Marco has a B.A. in Economics and a Master in Business
career as a technology consultant for Detecon, with Informatics, with a special focus on ERP Systems, innovation
international projects in Kuwait and Slovakia. He worked and entrepreneurship. He has worked in various start-ups
many years as a project manager, CIO and Operation for the rocket internet group and has therefore a strong
Director for large utility companies such as the GASAG entrepreneurial mindset. In recent years working for the
Group in Berlin. Sven has a strong entrepreneurial mindset GASAG Group he gained substantial knowledge of the energy
and a passion for technology. Throughout his working life, market, applied information technology and billing. During
Sven is an enthusiastic driver of the energy revolution in project work Marco applies best practice process modelling
Germany and has designed projects for energy and agile project management tools.
management solutions, Smart Metering rollouts and
electric mobility.
BUSINESS & RETAIL TEAM
Stephan Vogel Benni Wörpel

Business Development Manager Blockchain Marketing Manager
Stephan has a degree in Economics and a Master in Benni has a B.A. in Science and Technology and has a Master
International Business. He has worked for more than a in Integrated Natural Resource Management. His main
decade as a project and business development manager for focus areas are “Renewable Energy and Climate Change”
T.A. Cook, a leading implementation consulting boutique and “Methodology and Modelling of Sustainability”. He is a
focusing on the asset-intensive industries, such as oil, gas, blockchain pioneer, being certified by the first blockchain
utilities etc. During his tenure he advised companies like BP, university courses in Germany. He has researched for his
Bayer, and many more top-tier companies with billions in master thesis about the implementation of blockchain
sales. Moreover, Stephan founded the Brazilian office and technology in a carbon cap and trade scheme. Benni has
lead sales. Stephan is invested into several real estate marketed and partnered with various start-ups. He is also an
projects and has a strong entrepreneurial mindset. early investor in bitcoin and altcoins.
Stephan Bialek Chris Kilchling

Head of Finance & Brand & Design Manager
Operations Manager
Stephan studied information systems and is a certified Chris holds a diploma in Graphic Design. He is a brand
accountant. He is an expert in the utility business. At consultant and graphic designer, specializing in the
ExtraEnergie, one of Germany’s top 3 independent utilities, development of Corporate Identities for forward- thinking
he ensured correct billing and revenue assurance of companies across a variety of industries. He has been
ExtraEnergie’s 700.000 electricity and gas customers in B2C & instrumental in elevating numerous successful brands
B2B, USD 850m revenue and USD 100m operating profit. As through the implementation of compelling and fully-
a department manager he was responsible for more than 30 integrated design and branding strategies. He has worked
employees in billing and revenue assurance. Prior to this, he on creative projects all over the globe, gaining 15 years of
successfully founded an e-commerce platform for World of multi-disciplinary design experience, such as digital design,
Warcraft. corporate branding and web design.
Susanne Hößler Amy Xiao

Senior Data Analyst Marketing & Community Manager
Susanne’s function as a Data Analyst in the energy sector Amy has been working at multinational companies for more
started almost 10 years ago at eg Factory, service than 9 years. During her previous working experiences, she
provider of the ExtraEnergy. As one of the 3 biggest gained enormous acknowledges in terms of sales and
energy supplier in Germany for private sector acquiring marketing worldwide. Her working environment has always
more than 1 Mio customers, the ExtraEnergy holds a been very international so that she has excellent and
tremendous data pool to analyze and work with. customer-driven communication skills. As her professional
Working closely with both business and operative activity has been in China for years she is perfectly suited for
management, Susanne provided evaluations and marketing measures in the Chinese market. Currently Amy is
statistics fundamentally influencing business procedures in charge of all our social media communication channels
and company decisions. Both Susanne’s excellent and community building in China.
analytic skills and her being an Excel power user will
continuously help to improve our business performance.
DISCLAIMER AND
RISKS
DISCLAIMER AND ASSESSMENT OF VARIOUS RISKS INVOLVED

Please read this disclaimer notice carefully. Please note that the disclaimer set out below may be altered or updated, at any time in
whole or in part at the sole discretion of Lition. You should read it in full each time you visit the site.
All information is provided without any warranties of any kind. Lition and its advisors make no representations and disclaim all
express and implied warranties and conditions of any kind, including, without limitation, representations, warranties or conditions
regarding accuracy, timeliness, completeness, non-infringement, suitability of the Tokens for any prospective contributor, and Lition
and its employees, officers or professional advisors assume no responsibility to you or any third party for the consequence of errors
or omissions.
REGULATORY RISKS
The regulatory status of cryptographic tokens, digital assets and blockchain technology is unclear or unsettled in many jurisdictions.
It is difficult to predict how or whether governmental authorities will regulate such technologies or what tax implications could arise
for the holders of the tokens. It is likewise difficult to predict how or whether any governmental authority may make changes to
existing laws, regulations and/or rules that will affect cryptographic tokens, digital assets, blockchain technology and its applications.
Such changes could negatively impact tokens in various ways, including, for example, through a determination that tokens are
regulated financial instruments that require registration. Lition may cease the distribution of tokens, the development of the project
or cease operations in a jurisdiction in the event that governmental actions make it unlawful or commercially undesirable to
continue to do so.
The industry in which Lition operates is new, and may be subject to heightened oversight and scrutiny, including investigations or
enforcement actions. There can be no assurance that governmental authorities will not examine the operations of Lition and/or
pursue enforcement actions against Lition. Such governmental activities may or may not be the result of targeting Lition in particular.
All of this may subject Lition to judgments, settlements, fines or penalties, or cause Lition to restructure its operations and activities
or to cease offering certain products or services, all of which could harm Lition’s reputation or lead to higher operational costs,
which may in turn have a material adverse effect on the tokens and/or the development of the project.
All information is provided without any warranties of any kind. Lition and its advisors make no representations and disclaim all
express and implied warranties and conditions of any kind, including, without limitation, representations, warranties or conditions
regarding accuracy, timeliness, completeness, non-infringement, suitability of the Tokens for any prospective contributor, and Lition
and its employees, officers or professional advisors assume no responsibility to you or any third party for the consequence of errors
or omissions.
REGULATORY RISKS
The regulatory status of cryptographic tokens, digital assets and blockchain technology is unclear or unsettled in many jurisdictions.
It is difficult to predict how or whether governmental authorities will regulate such technologies or what tax implications could arise
for the holders of the tokens. It is likewise difficult to predict how or whether any governmental authority may make changes to
existing laws, regulations and/or rules that will affect cryptographic tokens, digital assets, blockchain technology and its applications.
Such changes could negatively impact tokens in various ways, including, for example, through a determination that tokens are
regulated financial instruments that require registration. Lition may cease the distribution of tokens, the development of the project
or cease operations in a jurisdiction in the event that governmental actions make it unlawful or commercially undesirable to
continue to do so.
The industry in which Lition operates is new, and may be subject to heightened oversight and scrutiny, including investigations or
enforcement actions. There can be no assurance that governmental authorities will not examine the operations of Lition and/or
pursue enforcement actions against Lition. Such governmental activities may or may not be the result of targeting Lition in particular.
All of this may subject Lition to judgments, settlements, fines or penalties, or cause Lition to restructure its operations and activities
or to cease offering certain products or services, all of which could harm Lition’s reputation or lead to higher operational costs,
which may in turn have a material adverse effect on the tokens and/or the development of the project.
Restricted territories
Viewing the materials available hereafter may not be lawful in certain jurisdictions. In other jurisdictions, only certain categories of
persons may be allowed to view such materials. Any person who wishes to view these materials must first ensure that they are not
subject to any local requirements that prohibit or restrict them from doing so.
The materials are for information purposes only and do not constitute or form a part of any offer or invitation to sell or issue, or
solicitation of any offer, to purchase or subscribe for the tokens in any jurisdiction or jurisdictions in which such offers or sales are
unlawful prior to registration or qualification under the securities laws of any such jurisdiction (restricted territories).
Accordingly, unless an exemption under the relevant securities law is applicable, the tokens may not be offered, sold, pledged,
taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, in or into a restricted territory where to do
so would constitute a violation of the relevant laws of, or require registration thereof in such jurisdiction.
There will be no public offering of the tokens in the restricted territories. If you are not permitted to view materials on this web
page or are in any doubt as to whether you are permitted to view these materials, please exit this web page.
Lition shall not have any responsibility in respect of access to it from territories whose laws prohibit such access or where any aspect
of the content of the site may be illegal. Those who choose to access this site from other locations do so on their own initiative and
at their own risk, and are responsible for compliance with applicable local laws.
Currency Regulation Risks
Governments are still grappling with public policy on the regulation of cryptocurrencies 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. Countries such as China and Korea have issued regulations or statements
prohibiting token sales, United States allowing only certified investors to participate to the sale while other countries have sought
to bring the sale of tokens within the regulator control of securities offerings. This could result in holders of token being unable to
use their token in the future without further regulatory compliance.
Risks Associated with Crowd Sale
Tokens are not investment products. Rather, token serve a specific function within the Lition ecosystem. For these and other reasons,
we believe the sale of token does not constitute a public offering of securities subject to prospectus registration requirements.
However, public policy towards token sales is changing, and it is conceivable that regulators may in the future seek to broaden the
scope of regulation of token sales. This could make token sales subject to registration requirements in the United States and similar
jurisdictions. If the token sale becomes subject to registration requirements, this would delay or potentially postpone the proposed
token sale indefinitely.
Taxation Risks
The use of token as a form of settlement currency may or may not be subject to local income tax, capital gain taxes, VAT or other
forms of taxes. This uncertainty in tax legislation may expose merchants and customers alike to unforeseen future tax consequences
associated with the use of token as a settlement currency, and/or the trading of tokens or token for capital gains.
Capital Control Risks
Many jurisdictions, such as China impose strict controls on the cross-border flow of capital. Holders of token may be subject to
these regulations and/or arbitrary enforcement of such regulations at any time. This would make the transfer of token out of the
local jurisdiction to overseas exchanges an unlawful activity exposing the user of token to government fines or other regulatory
sanction.
CTF and Anti-Money Laundering Regulations
The United States has issued a series of regulations to combat terrorist financing (CTF) and money-laundering activities. Many other
countries have enacted similar legislation to control the flow of capital for such illicit activities. The use of cryptocurrencies by bad
actors would breach such regulations. Any illicit use of the token could seriously impact the global reputation of the RED token
Network. In such event, it is not inconceivable that this could trigger scrutiny by CTF and anti-money laundering regulators and
potentially cause significant disruption to the distribution and circulation of tokens and Token in the RED token ecosystem.
BUSINESS RISKS
Lition plans to conduct closings of sales of token as funds are received. If insufficient funds received from the sale of token, Lition
may not be able to implement its plans along the timeline as described in this white paper. Lition’s ability to remain competitive
may depend in part upon its ability to develop new and enhanced products or services and to introduce these products or services in
a timely and cost-effective manner. In addition, product and service introductions or enhancements by Lition’s competitors or the
use of other technologies could cause a decline in sales or loss of market acceptance of Lition’s existing products and services. There
can be no assurances that Lition shall be successful in selecting, developing, and marketing new products and services or in
enhancing its existing products or services. Failure to do so successfully may adversely affect Lition’s business, financial condition
and results of operations. Lition’s ability to realize its objectives shall be dependent on its 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. The industry in which Lition operates is new, and
may be subject to heightened oversight and scrutiny, including investigations or enforcement actions. There can be no assurance
that governmental authorities will not examine the operations of Lition and/or pursue enforcement actions against Lition. Such
governmental activities may or may not be the result of targeting Lition in particular. All of this may subject Lition to judgments,
settlements, fines or penalties, or cause Lition to restructure its operations and activities or to cease offering certain products or
services, all of which could harm Lition’s reputation or lead to higher operational costs, which may in turn have a material adverse
effect on the token and/or the development of the project.
Further on, any transaction concluded based on this whitepaper shall be considered as a random agreement meaning that the
length and even the enforceability of the rights provided herein is not known/entirely known at the moment of its signing, given
that the main rights and obligations of this agreement depend on one or several future events and therefore any of the signing party
bear the risk of winning or losing depending on future events.
Forward-looking statements
Lition makes no warranty whatsoever with respect to the tokens, including any: (i) warranty of merchantability; (ii) warranty of
fitness for a particular purpose; (iii) warranty of title, or (iv) warranty against infringement of intellectual property rights of a third
party; whether arising by law, course of dealing, course of performance, usage of trade, or otherwise. Except as expressly set forth
herein, recipient acknowledges that it has not relied upon any representation or warranty made by Lition, or any other person on
Lition`s behalf.
All estimates, projections, forecasts, prospects, expressions of opinion and other subjective judgments contained in this paper are
based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be
construed as a representation that the matters referred to therein will occur. Any plans, projections or forecasts mentioned in this
paper may not be achieved due to multiple risk factors including without limitation defects in technology developments, legal,
economic, or regulatory exposure, market volatility, sector volatility, corporate actions, or the unavailability of complete and
accurate information.
BLOCKCHAIN RISKS
On the Ethereum blockchain, timing of block production is determined by proof of work so block production can occur at random
times. For example, ETH contributed to the token distribution contract in the final seconds of a distribution period may not get
included for that period. Buyer acknowledges and understands that the Ethereum blockchain may not include the buyer’s
transaction at the time buyer expects and buyer may not receive token the same day buyer sends ETH. The Ethereum blockchain is
prone to periodic congestion during which transactions can be delayed or lost. Individuals may also intentionally spam the Ethereum
network in an attempt to gain an advantage in purchasing cryptographic tokens. Buyer acknowledges and understands that
Ethereum block producers may not include buyer’s transaction when buyer wants or buyer’s transaction may not be included at all.
Token may be subject to expropriation and or/theft. Hackers or other malicious groups or organizations may attempt to interfere with
the token distribution contract or the token in a variety of ways, including, but not limited to, malware attacks, denial of service
attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, because the Ethereum platform rests on open
source software and token are based on open source software, there is the risk that Ethereum smart contracts may contain
intentional or unintentional bugs or weaknesses which may negatively affect the token or result in the loss of buyer’s token, the
loss of buyer’s ability to access or control buyer’s token or the loss of ETH in buyer’s account. In the event of such a software bug or
weakness, there may be no remedy and holders of token are not guaranteed any remedy, refund or compensation. Although Lition
and the blockchain are operational at the time of the ICO, it might not function as intended, and any tokens may not have functionality
that is desirable or valuable.
TOKEN CHARACTERIZATION AS A UTILITY

Lition Tokens are a utility token. By design, there is no proximity to financial instruments and no financial instrument is provided to
token holders in return. The token is only used inside the blockchain as described in the respective section in this whitepaper.
Further use cases, such as for charging stations and other additions will include elements that will not turn the token into a security.
BUYER KNOWLEDGE AND NO WITHDRAWAL RIGHT

Buyer has sufficient knowledge and experience in business and financial matters, including a sufficient understanding of blockchain or
cryptographic tokens and other digital assets, smart contracts, storage mechanisms (such as digital or token wallets), blockchain-
based software systems and blockchain technology, to be able to evaluate the risks and merits of buyer’s purchase of tokens, including
but not limited, to the matters set forth in this white paper, and is able to bear the risks thereof, including loss of all amounts paid,
loss of tokens, and liability to Lition Parties and others for its acts and omissions. Buyer has obtained sufficient information in order
to make an informed decision to purchase tokens.
While deciding to enter and entering into any transaction based on this whitepaper the buyer/interested party is hereby informed
and undertakes it will not benefit from a right of withdrawal from the transaction and his decision of entering into such transaction
is final and under no circumstance he shall be given with a withdrawal right.
KNOW YOUR CUSTOMER (KYC) RULES

Considering the anti-money-laundering and anti-terrorism national and international regulations, Lition reserves the right to
develop and apply KYC rules and procedure before the sale of tokens, before the trade of such tokens and before or during the
execution of any transactions; likewise, depending on the findings of such rules and procedure or when there exists a reasonable
doubt that a certain participant/interested party is involved in money-laundering or terrorism, Lition reserves the right to refuse at
its sole discretion a transaction, trade or sale of token to any third party and also has the right to refuse the access to its platform
and/or to suspend such access at any given moment. Our KYC service provider is using machine learning technology, to identity trust
worthy clients, by cross-referencing them against international credit and watch list databases.

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001 Lition White Paper

The blockchain infrastructure for all regulated markets

This document represents a work-in progress

KEY HIGHLIGHTS ...................................................................................................................................................................... 4

LITION – THE WORLD'S FIRST MASS MARKET P2P TRADING PLATFORM

1 BP Statistical Review of World Energy 2017, Page 10

Fully-functional & blockchain-enabled Lition Energy Exchange, accessible to all customers

• ability for any producer to sell energy to consumers

• trustless environment allowing verification of energy producers and consumers

• tamper-proof energy exchange history on a public blockchain

HOW IT WORKS TODAY

4 Lition internal study on price comparison conducted in June 2018

Figure 1: Description of the Lition approach

Figure 2: Lition customer benefits and resulting commercial success

Figure 3: Illustration of the Lition Energy Exchange

COMPARISON WITH OTHER P2P ENERGY TRADING PROJECTS

Table 1: Comparison of product characteristics

Table 2: Comparison of ICO details and performance (source: Coinmarketcap.com)

Figure 4: Current Lition Blockchain system architecture

Figure 5: Technical flow of Lition energy transactions

KEY COMPONENTS IN CURRENT BLOCKCHAIN-APPLICATION

𝐶𝑜𝑛𝑡𝑟𝑎𝑐𝑡 = min 𝑝𝑟𝑖𝑐𝑒(𝑖) ∀ offers i = 1, … m

Settling energy trades for the consumer

Settling energy trades for the producer

Figure 6: Shortcomings of Ethereum in current blockchain application

Issue 1 – No light client that can run on Smart Meters

Issue 2 – Transaction costs

Issue 3 – Slow Block confirmation

Issue 4 – No private sidechains for private data

Issue 5 – No API interface for chain ↔ backend communication

Issue 6 – Data cannot be deleted from blockchain

COMPARISON WITH EXISTING CHAINS

Possibility to delete data  - - - - - - - - n/a

Productive 2019    tbd    Q2-2019 Q3-2019

Max tx/sec 25 100k 3k ND 10k 9k 3.5k - n/a

Figure 7: Comparison of blockchain infrastructure solutions

THE PROPRIETARY LITION BLOCKCHAIN – CO-DEVELOPED WITH LEADING TECH COMPANY

Public Nodes (as m iner) Store blinded data Blockchain Integrity

Figure 8: Lition Blockchain infrastructure concept

TOKEN USE IN THE BLOCKCHAIN

Figure 9: Token usage

Figure 10: The Lition Energy Ecosystem

USE CASE FOR SMART METERING AND ENERGY-DATA DRIVEN RECOMMENDATIONS

Figure 11: Illustration of the Lition Smart Reader App

In summary, the benefits are:

Smart Affordable Easy

• Full energy cost control • Device and its installation

Figure 12: Lition Smart Reader Benefits

Background and Challenges of E-mobility

Lition’s Worldwide Strategy for E-Mobility

Convenience Cost Smart

Table 3: Benefits for Consumers

OVERALL MARKET GROWTH

HOW THE ENERGY ECOSYSTEM EXPANDS

Figure 13: Expansion approach for Lition

Depending on the use case, these are:

A selection of some of the potential applications is detailed in the section below.

Enterprise Data Management

The current lead partners are the following:

SAP is a multinational market leader in enterprise application software, managing business

Energy partner Germany

Table 4: Current technology, blockchain and token sale partners

EXPANSION PLAN WITH FUTURE INDUSTRY PARTNERS

Currently, these are: