Public-private blockchain Lition. CryptoTwins in interview with Richard Lohwasser
As CEO of Lition, Richard Lohwasser hopes to create the standard public-private blockchain solution for business. Most importantly, Lition will be scalable, be one of the first projects to have deletable data features and be tailored to commercial users. As a former McKinsey consultant and entrepreneur he hopes to create a blockchain which will have the potential for mass adoption. The interview was conducted by the CryptoTwins from ValueTokenized.
What the Lition Team Wants to Achieve
According to Lohwasser the Lition team is really excited about its objective of bringing blockchains to the mass market. Specifically, to bring blockchain technology away from the niche utilities and away from single-use cases and into peoples’ lives on a daily basis.
Why They’ve Chosen to Begin Development on Ethereum
When deciding which blockchain to use, they looked at several options; however, Lohwasser felt that Ethereum was the de facto standard for decentralization and he wanted to make sure that it’s very easy to migrate in the future.
Conforming to European Regulations
Speaking about the stringent data regulations in Europe, Lohwasser pointed out that if a company doesn’t apply through GDPR, and follow their data protection rules, it’s possible to be fined millions of Euros. The fine can even be as high as 4% of global revenue.
Lohwasser claims that while a fine of this magnitude may not kill a large company, it could severely damage it and should be avoided at all costs. This is especially the case as Lition is looking at corporate audiences.
The Problem with Storing Data on a Blockchain
Speaking about the problem of storing data on a blockchain, Lohwasser gave the following example. If a citizen gives his data to a company, for a loan or perhaps a contract, but the loan is paid off or the contract ends, the individual is legally allowed to request that the data be deleted from company records. That’s fine for a database, but how can you delete data from an immutable blockchain? Lition has come up with a novel solution.
How Lition Allows Customer Data to be Deleted
To solve the problem, Lohwasser and the Lition team used two separate storage elements. They use a blockchain to store the hashes of the data and then they have a distributed database which actually stores the data. When a transaction is sent it’s split into the hashes which are stored on the blockchain, and the data which is stored on the distributed database. The two are interlinked yet the data from the database can still be deleted, thus allowing Lition to conform to regulations.
Why Lition chose ICO over STO
Lohwasser believes that STOs are the future and they have many advantages over an ICO. For example, putting real estate or equity in a shared enterprise on the blockchain. However, according to Lohwasser, the legal regulations for security tokens at this time are too opaque and subject to change. He didn’t want to risk a security token offering if there was a possibility of not being in compliance with laws that may be written in the future.
STO Regulations in Germany
The German government is actually asking experts for help. In fact the government has even worked with Lition on this and Lohwasser has had the opportunity to give feedback to members of Parliament.
Further, he’s stated that in two weeks he’ll be in the German Bundestag on an expert panel speaking about blockchain technology and security token offerings. Hopefully that panel goes well and the government moves one step closer towards healthy regulation that will allow the cryptocurrency and security token market to flourish.
You can watch the full interview with Dave on YouTube: https://omg.to/vl/yt/richard-lohwasser/frmdpb
Or video-highlights of it on Twitter: https://omg.to/vl/tw/richard-lohwasser/frmdpb
