CryptoMedics’ AMA with Lition
CryptoMedics have always researched the market for new gems. Perhaps we have just found one. Lition conducted a very successful ICO and were kind enough to visit us in our free discussion channel to answer all questions from the community. What you’re about to read is the transcript of it.
What is Lition about?
Lition is developing the scalable public-private blockchain with deletable data features, made for commercial products.
Here a short intro video of Lition:
What about the token?
The token sale for $2m was held in the end of March and closed within minutes. Tokens have been distributed and will list April 17, read more here: https://medium.com/lition-blog/token-generation-event-and-exchange-listing-update-69acb0e84ee
Milestones:
▪️P2P energy trading dApp commercially launched in April 2018
▪️technology partnership with SAP (Blockchain — Co-innovation)
▪️$5m hard cap reached (TGE & blockchain development secured)
▪️testnet launched for public private blockchain with private data
▪️advisor to the German government for legal framework for STOs
▪️2nd dApp — finance use case in mvp stage (syndicated bank loan)
CryptoMedics: Welcome Richard (CEO) and Alex (Business Dev) from Lition — they will be happy to answer all your questions regarding Lition.
Richard and Alex, you might want to quickly introduce yourself and Lition.
Lition Team: (Alex): I’m Alex and responsible for BD matters and some other things.
(Richard): Together with the co-founder Kyung I founded Lition about a year ago. Before, I was working in traditional energy companies (good salary, 2 executive assistants, company car, low stress, low workload — but also no fun). Prior to that I did consulting at McKinsey for 6 years, and founded 2 start-ups before.
Question: Do you think the 2 million dollars which you raised will be sufficient to run Lition?
Answer: Not for our plans, not even close. But it’s for sure enough to ignite the fire.
Q: Also when you can plan an IEO on exchanges like okex and raise a couple of millions more so that it will be feasible for long term cash supply for the development.
A: Also, Lition is well positioned to generate long-term revenues from corporates, so we have a healthy organic supply of funds. I think this is very different from some blockchain projects that just rely on selling their own tokens to survive, which is not sustainable. Also, our energy use case has now customers from over 100 cities, which is a very sustainable revenue source.
Q: Why got for tier 2 exchanges first than going for tier 1 which would have got us more visibility?
A: We were in contact with almost all Tier 1 exchanges, so we carefully thought about this option. However, exchange listing is also a relevant cost factor, and we want to make sure we choose our spending wisely. In the end, we weren’t convinced that an investment into a TIer 1 exchange is the right decision for our investors, and also not for us as a project. Also, once we demonstrate traction and volume, our position will improve a lot towards Tier 1 exchanges. That’s our plan. We’re in very good terms with the Tier1 exchanges, we just said it doesn’t make sense right now to make this step.
Q: Hello Richard and Alex. Thanks for doing the AMA. Would you say that the energy use case you got is the one that will finance many of the other activities Lition plan to do in the future in regards to blockchain? Also, what is the goal in regards to user retention for the energy use case. Is it 1% market share in Germany or more, how do you see it? Also how involved is SAP in building their part of Lition chain? Is that work ongoing or will start here leading up to the main net?
A: I think there’s a good chance, yes. Right now the profits from the energy business are not sufficient to sustain the blockchain infrastructure and the other use cases, but as our customer numbers are growing so do our chances. So far, we’ve had many discussions on architecture. Actually, the core idea of the sidechain technology came from SAP. Their CTO is also one of the co-authors of our technical white paper. More to come!
Q: Regarding your choice of exchange: in my opinion (and in that of many others) exchange does not have to matter as long you have liquidity and a good market maker. So I’m more than happy with a decent tier 2 exchange for Lition, but I would like to know how you plan to provide liquidity and market making? As the project has received quite some criticism on this topic in the past.
A: We’ve engaged with a proper liquidity provider so that we can ensure healthy order books on our first exchanges.
Q: How is the nature of the relationship with SAP?
A: It means we’ve signed a contract to work together on bringing blockchains to mass market use. This is a common goal, based on our joint observations that today’s blockchain architectures do not support requirements of typical business use cases like managing both private and public data, legal compliance for data protection, transaction speeds, etc. Lition made this experience through their energy use case, and SAP through various MVP projects they did together with their clients. In practice, it means our developers regularly meet to discuss how to bring this into technical reality. The work distribution is that Lition develops the public consensus system, while SAP is responsible for private storage.
Q: In what ways will the LIT token be used in your project, in order to create an incentive for long term holders?
A: It is mainly used to pay for gas costs, sidechain spawning and in order to stake for network security.
Should the infrastructure gain high traction, the stakers will receive higher proportional rewards since we are basing those on the transaction fees happening. That way you basically buy your right in to have staking capability in order to receive rewards which are lower/higher based on the success of our blockchain.
Q: Hey guys, which project do you consider as the main competitor of Lition?
A: It is hard to precisely call on our competitors as we are having quite a broad scope that is addressed by a few projects more narrowly. However, here are a few projects that enter our scope:
· LTO (waves fork, same GDPR compliance but smaller scope than we’re having)
· LOOM (layer 2 solution but focused on games and plasma)
· RAIDEN (layer 2 solution but focused on payments)
· CELER (layer 2 solution but focused on off-chain transactions & smart contracts)
· POA (layer 2 solution but focused on interoperability)
Q: Are there other crypto projects that you are cooperating with and find productive synergy with?
A: Actually quite some, yes. We’re will bring some exciting stuff. There should actually still come something today.
Q: Also, how does data deletion work? Is it on-chain or off-chain? And does it go in line with the idea of blockchain?
A: We delete the data by splitting the data from the hashes. When we delete, we just delete the data, but keep the hashes intact. The best source for a detailed explanation, incl. a live demo when we actually delete the data is our testnet launch video from the SAP data space (https://www.youtube.com/watch?v=-IgHbf-T_jw&t=998s)
Q: What are good reasons to chose Litions chain over another solution? In your opinion.
A: By observing the tech from a business perspective, what makes Lition’s chain unique is that every enterprise can use our chain in a fully compliant way. The feature to keep data private and also to delete them without losing blockchains core benefits is a big USP for Lition — In Europe for instance, when an enterprise manages third party’s data it has to be GDPR (privacy law) compliant, hence the only way to integrate blockchain into businesses are precisely those features that Lition is developing.
In practice, when talking to enterprises evaluating blockchain infrastructure solutions, good technology is however only one part of the story. What now is even more important is that the technology is commercially proven, with real customers and real revenue. This is still quite rare. And additionally, large brand names tend to trust large brand names a lot more than startups. Here our strong partnerships help a lot and give credibility.
The downside of the Lition blockchain comes when you have use cases that are purely public or purely private. In both cases, there are more efficient solutions available, such as Hyperledger or R3/Corda (purely private chains) or EOS (purely public).
Q: do you guys have any plans to attract blockchain devs to build on Lition?
A: We believe that developers always try to find the best technical solution. Our own observation from our Energy dApp was that there is currently no good solution out there for the requirements of commercial, real-life use cases. That’s why we did the Lition blockchain — and we believe others will also see this, and choose Lition as their technology of choice.
Additionally, we are through active business development pushing more and more companies to use our infrastructure and have allocated a dedicated segment of our tokens to incentivize use.
Q: In the bear market (we are still in it despite what some might be saying) most of the tokens are dying. What will you do to bring liquidity to the token?
A: As already shortly mentioned, we have contracted a party that will ensure liquidity in our trading pairs. Moreover, many projects are dead in this market because they promised things and never delivered. We are quite the opposite and are more fan of underpromising and overdelivering. Lition is here to stay sir! :)
Q: Does Lition have a burning program like other projects? If not, can you guys explain the reason?
A: Burning programs are designed to artificially increase the value of a token. That’s the characteristic of a token designed for speculators. Lition was explicitly designed with a different mindset, to be a corporate solution for long-term, mass-market adoption. That’s why a buyback program wouldn’t fit Lition.
Q: Which means you guys can somewhat suppress price manipulation?
A: Well, we are a freely traded token, like any other token. But we designed the token primarily for utility use at corporates.
Q: Where do you envision Lition being in 10 years? Like ultimately when you dream about Lition in an ideal world what does that entail?
A: I dream that Blockchain is not something that tech-purists and speculators use. I dream that Blockchain technology powers many areas of everyday life. But that’s a long journey until we’re there. Baby steps! One dApp at a time.
Q: Is it possible to tokenize securities on Lition? Also, will Lition introduce staking in a later stage?
A: Lition can provide the infrastructure for Security Tokens. The actual legal supporting work will be done by a provider, currently our partner Tokeny. But there might be more to come!
CM: Thank you @richloh and @alexb007 for your time and devotion. Your answers were extensive and comprehensive. We all wish you all good luck and only progress with your great project!
Lition: Thanks a lot for your time guys! Much appreciated!
Guys, I’d like to say thank you so much for hosting this AMA!!
And also for the community for the many questions. In total, an AMA that goes well over an hour is a really good sign.
Contact with Lition:
▪️Website: www.lition.io
▪️Twitter: https://twitter.com/lition_block
▪️Medium: https://medium.com/lition-blog
▪️Announcement Channel: https://t.me/OfficialLitionANN
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