Lition Review: Hate it or Moon it. Money Burner or a #Buidler?

Crypto community in 2017: “2016 was a year of ICO projects’ promises, so now it is time for them to show their progress!”

Crypto community in 2018: “2017 was a year of ICO projects’ promises, so now it is time for them to show their progress!”

ICO projects in 2018: Only 36 out of the top 100 projects have working products

Crypto community in 2019: “…Can we get an MVP at least?”

This is the dialogue between investors, crypto-enthusiasts and ICO projects we’ve been witnessing for years.

Believing in a better tomorrow plays a cruel joke on those who prefer supporting projects to the bitter end. Sometimes, this bitter end comes sooner than later, and sometimes, the project doesn’t even start.

| According to ICORating, only 136 projects managed to collect more than $100 thousand in Q4 2018, and only 9 of them were listed on an exchange.

It’s impossible to find anyone who could remain indifferent toward the bear market and “Very High” ICO failures. Now, the community sets the bar high for new projects. In short, the bar is:

We need #BUIDL, not #HODL! We expect real products with real value and real companies who know their target market.

Is the situation getting better? It seems so. 20% of all ICO projects already had an active business in Q4 2018. That’s 15% more than in Q3 of the same year.

In March, our attention was drawn by another European infrastructure project — Lition.

Here’s what took our attention:

  • Experienced team members
  • The solution complies with GDPR (General Data Protection Regulation)
  • Dual architecture (public-private blockchain)
  • Focused on B2B and developers
  • Partnership with the industry giants
  • The team collected $2 mln during the seed round
  • Registered company

Again adoption, B2B, commercial partners? Well, there’s something that spoiled our first impression. From love to hate or vice versa? Let’s find out.

You’ll learn from this review:

  • What we hate about Lition
  • Which pilot MVP they are proud of
  • Technology (in details, as usual)
  • What we love about Lition
  • Conclusion

What we hate about Lition

Technical paper

Most likely, we’ve got spoiled by some projects whose technical whitepapers were comprehensible. Yes, they can be rather complicated sometimes, but Lition’s paper just doesn’t make the product’s architecture clear. There are tons of vague and general phrases describing technologies they plan to use, whereas the specific context of the whole system is avoided. Imagine if the instructions on building a LEGO airplane provided just the description of the details without any explanation on which of these parts and in what order you should connect to get an airplane as a result. It would be a bit strange, right?

| It’s here ? click me

Main paper

It’s enormous. There are 30 pages containing essential information, tops. Now, we know it is possible to turn this into all 70. The extra long intro deserves a separate Medium post. There are too many repetitions, too: SAP is constantly mentioned here and there, as well as the “Energy Use-Case” pilot project for P2P green energy trade between users and producers (though it’s not that bad itself). In the Other Use Cases section, the same combinations of words were repeated to describe “various” ways to use Lition. Considering that this is a solution which enables the confidential data owner to delete his or her data from the blockchain upon request, it is not difficult to guess that people can store their personal data anywhere, and these mechanisms will be identical in almost all cases, be it the healthcare industry, banks, markets, etc.

| Check it here ? Link

Everything in one basket

Having all the non-technical information about the project in one paper does not seem to be a good idea. Analyzing other projects, we repeatedly drew the same conclusion — there should be a separate paper on tokenomics, another one on the technical details, and one more (in a perfect world, yeah) paper on the consensus algorithm and rewards distribution within the system (this is really crucial). This can make the life of both the team and the community a lot easier. Of course, it must have its limits — right, Fetch AI?

Social media activity

When it comes to numbers, these guys did not fail. But how many of those users are really active people? It is still a good question (Twitter has 18k followers). The project’s blog is on Medium which seems the only right way to publish announcements at the moment, and it is also not in its best condition. There are some articles there, but within days until the ICO’s start, readers want to get better educational content and more audience involvement. Who the hell will support the project otherwise?

However, Lition has a fairly active Telegram chat where all questions get answered quickly.

Mainnet in Q3

In 2019, the projects with the mainnet completely finished or being at the testing stage have set an example for us. In such ICOs’ cases, the fundraising goal is clearer than the sky — the project needs to gather miners-stackers to bring the infrastructure to life. Lition plans to launch the mainnet in Q3 2019, so we’ll have to wait a lot. It’s a pity. However, the project has already launched the testnet successfully, but we’ll talk about it a bit later.

Tokens for the public and private investors

It won’t take long to see that something is not right on this picture:

And yes, these locks leave far to be desired. We could agree with something like at least 2 years vesting period for seed round investors, but hey, 6 months? Wut?

Lack of educational content for the community

We found users’ comments on YoutubeTelegram, and even on Twitter, and it became obvious to us — very few people understand what Lition is and how it works. It’s a no-brainer why.

The team makes few attempts to explain to investors how the architecture actually works in simple terms. This isn’t cool at all considering the number of days left before ICO.

A blockchain with the data deletion feature (which is what blockchain wasn’t supposed to have at all) — is it possible and how safe it is? We can wring the car’s wheels and make it a boat, can’t we?

It is actually possible — although with some reservations, but without any compromises on security. How does Lition do that and for what purpose? Keep reading the review and hopefully, we will make it simple for you.

What the heck is Energy Use Case?

So, how did it all start? The project founders, being the energy sector pioneers, wanted to launch an innovative product. They saw the problem and realized that it can be solved with blockchain.

They developed a DApp using the Ethereum network, rolled it out, and managed to attract users. Now, their product is used in more than 30 cities in Germany (the number of users, however, is unknown). Lition has a state license to sell energy. Take it and use it.

Here’s how it looks.

DApp interface is quite nice, approved even by my granny. If you’re curious, you can try the demo and check out their website in German. The team published the source code for the application itself and Ethereum smart contracts on GitHub.

account: demo
password: demo1234

Lition opens source code — and focuses on 3 new areas
Lition releases the source code for the energy use case publicly on Github, including our front-end and smart…

Unfortunately, after you buy electricity via the platform, your wires do not start turning green due to the eco-friendliness of the current flowing inside of them. There is only one electricity flow in the general electricity network, and neither you nor the flow knows where it came from. Instead, you can measure the electricity consumption by the meters installed in your house. Based on these measurements, you’ll be able to pay for the energy produced at a particular station.

Imagine a water source with several streams flowing into. Eventually, you consume the water from the common pond, but you pay only for the water from an eco-friendly stream. Nevermind…

This problem really exists though. For the reasons mentioned above, unscrupulous suppliers often sell the energy that is not green at all, hiding its origins using fake “green certificates”. Moreover, they raise charges as the product is extremely “eco-friendly”.

The platform’s point is that both the supplier and you can transparently log your exchanges on the Ethereum blockchain. At the end of a certain period, the energy supplier bills Lition, and the company pays it with your fiat money or BTC if you wish. So you actually don’t buy energy for Ether on the platform itself.

Weird? It seems as if they wanted to get rid of centralization, and now they’re stuck in the middle of the process themselves. Yes, you got that right. But it’s not possible to make it more elegant. However, all the guarantees remain in force, and you really buy green energy directly from the supplier. Besides, the costs of involving third parties are reduced. The blockchain platform and Lition, serving as the transaction co-operator, just ensure the transparency of the entire acquisition process.

They knew they can do it better

After a while, Lition began to realize that the existing solution has too many shortcomings, but an infrastructure for a decent replacement can’t be found.

Ethereum is not perfect as well:

  • It’s a bit weird to sell the green energy using PoW blockchain which consumes a huge amount of energy for its operations — and that energy is often far from being “green”.
  • Transactions are rather slow (10–20 sec) and expensive. Despite having thousands of users, the company spends a lot of money on transaction fees.
  • Ethereum blockchain is not compliant with GDPR, the European regulation on user data protection. All Ethereum data is publicly available.

Blockchain projects that would have combined speed, low commission fees and the ability to delete user data were not available. Therefore, Lition decided to make their own one. A true success story, isn’t it?

Do you remember how excited we were about the projects that ran the gamut from a challenge to the technology and the product instead of coming up with a product and trying to push it to the customers? It’s a great way to start.

They know, what they do. They know why. They know who else may need it!


A P2P trade application is just one example of using the main (within the ICO) Lition product. Searching for the perfect technical solution resulted in the creation of a scalable public-private blockchain infrastructure (based on sidechains) with the possibility to delete data upon the owner’s request. It’s a sort of Hyperledger on GDPR steroids. In original:

Lition is a second-layer blockchain infrastructure on top of Ethereum that enables commercial usage of dApps.

To wrap your head around the project, we offer you to understand each term one by one, and then move on to DApps themselves and their commercial usage.

If you are an advanced blockchain-savvy, you can skip the next couple of sections.

What is the second layer and where was the first one?

The public blockchain is considered to be the first layer. It scales poorly because of its size and technical restrictions (Bitcoin or Ethereum can be an example). It means that as the network load increases, transaction speed does not stay at the acceptable performance level, becoming slower and more expensive. As you know, this significantly hinders the possibility of using these blockchains on a corporate level.

The first-layer solutions are solutions on the level of the architecture itself; in other words, it’s on the program-code level (Casper, eWASM, sharding, etc.). So, we change “a couple of lines in the code” and our blockchain is flying like a jet, right? Well, it doesn’t work this way. Huge networks like Ethereum plan such changes of “a couple of lines in the code” for months (or even years), as there is a high probability to screw up and fail the entire network or generate new errors which are not easy to get rid of.

The second layer is the protocol level where protocols work upon the basic network (of the first layer). The general idea of such protocols is:

A public network with thousands of miners is aimed at confirming significant events. At the same time, most typical operations are performed within another network with a lower number of validators. This decreases the commission fees and increases the transaction speed.

There are many implementations of such protocols: condition channels, side chains, sharding, cross or multichains, and others. But we won’t dive into them in this review 🙂

Lition solution is based on sidechains, so let’s describe what they are first.

What are sidechains?

Sidechain is a separate unique chain that is attached to the main blockchain for additional validation. E.g., Ethereum sidechains use specific sets of smart contracts for such binding. Ethereum network tokens can be moved to a sidechain using smart contracts where they become a part of the local economic system. Of course, tokens can also be easily “removed” from a sidechain.

It is important to emphasize that sidechains are blockchains that are fully independent. They are responsible for internal security. Therefore, they have their own consensus algorithm. For example, Lition has chosen the Proof of Stake (PoS) for their sidechains.

Lition architecture

I know that you want to get to the point faster, but there are a couple of important terms more — permissionless and permissioned.

These words are used to define how access to transaction processing within the network is granted.

In permissioned blockchains, transactions are processed by a strictly defined set of nodes. Depending on the network configuration, these nodes can be defined by the network itself based on some rules or by the privileged participant(s) (e.g., EOS). Usually, these are private commercial blockchains for corporate use (e.g., Hyperledger Fabric).

In permissionless blockchains, all users take part in transaction processing — if you have a digital wallet or a hot shiny mining rig, you can go on mining blocks with everybody else. Usually, these are public blockchains, such as Waves, Bitcoin, Ethereum.

Well, now the Lition’s architecture will be easy-to-understand. It consists of three layers:

  1. Application layer (all DApps are here, Energy Use Case for instance). DApps developers are supposed to run their applications upon the Lition intermediate layer in order to store their user data privately and to be able to delete it.
  2. Layer 2 scaling solution (the so-called “permissioned sidechain”) — that’s where the DApps and customers’ data is stored and can be deleted. Transactions are confirmed only by the trusted nodes.
  3. Public mainnet (validation), which is currently the Ethereum network. Actually, Lition intends to become blockchain-agnostic in the future. This means it won’t matter which public network to connect to.

Once per every N time period (N is determined by the sidechain owner), the sidechain gives the transaction history to public nodes via the API for confirmation. Public miners confirm the integrity of the sidechain, and if all transactions are valid, they confirm the next block. It’s enough to place only the hash of the last block from the sidechain to a public blockchain. After all, if the entire transaction history check was successful, then the last block is also valid.

This is an example of the typical anchoring technique. It is as easy as 1,2,3 and effective at the same time.

Anchoring — a private sidechain technique for registering data (or the fact of its existence) on the public blockchain.

Let’s see how it works altogether:
Imagine you have a DApp where users can sell and buy something for their good mood 🙂 Let it be chocolate…

This is John. He’s a very optimistic guy, who loves chocolate…

To store your customers’ confidential data, you agree with the supplier to launch the Lition network nodes for chocolate transaction processing. A local private (or public, to your wish) blockchain is created between the previously selected trusted nodes. There, the selected nodes process transactions and save the following transaction data:

  • Customer data
  • Supplier data
  • Purchased chocolate amount
  • Timestamp
  • And a hash of all these.

Public nodes just check the abstract details (metadata) of the transaction. As they don’t possess knowledge of the transaction data as such, they have to rely upon the trusted nodes during confirmation. To be exact, at least ⅔ of privileged nodes MUST behave fairly to maintain the sidechain safety at the appropriate level. In order to ensure such behavior, all nodes are not only rewarded for mining new blocks but also stake all their Lition tokens with a risk to lose them all in case of malicious behavior.

In case John decides for any reason that data stored in your blockchain is potentially harmful even if it’s private (for instance, his wife will suspect him to be a sweet tooth), he has a right to require the data to be deleted. He activates the “delete my data” smart contract using his digital signature and the data hash mark for the data that should be deleted.

Upon receiving such a request from a smart contract, nodes are required to delete the data. Due to the preventive measures against a refusal of data deletion, each privileged node connected to the sidechain has to accept the “Terms of Service” (ToS). Any node’s improper behavior is considered a violation of this agreement and leads to legal proceedings.

Nodes delete only the data while leaving its hashes to still have an ability to check the chain integrity. We want to remind you:

Hash is a one-way function. It is impossible to recover the data from its hash.

During the input, the function receives some data, converts it based on a certain algorithm, and as a result, we get a line of letters and numbers, e.g.: 06e41eeeb793787ae588…

It is important to note that different inputs result in unique hashes, but when the data sets are exactly the same, the hashes will always be the same as well.

This is the reason why nodes can confirm data integrity as the blockchain includes the hash of the previous block into the current hash.

And here we come to an obvious question:

Well, how can data be deleted afterward then?

Of course, you might ask: shouldn’t the hash lead to a conflict of inconsistencies after the data is deleted? As the hash must have changed following the data changes? Yes, it should, but

In Lition the logic separates the data from its hashes

In this case, hashes are needed only to confirm the initial transaction data which is known only to the trusted nodes (permissioned nodes). All public nodes just confirm the hashes correctness.

| You can find more details on confirming hashes’ authenticity without the initial data in Lition’s Technical Paper (p.4)

This is possible due to … you won’t believe this … the database. Data is stored in the so-called ‘Unhasher’ distributed storage. This is typical key-value storage available only to trusted nodes. It can show data, report that data is not stored and, of course, delete data. Formally speaking, it does not delete data, but transforms it into an empty string, and is programmed in such a way to perform it only once. Not bad!

Using a blockchain and a distributed database at the same time?

As a result, we get a kind of “double engine”, one part of which is a storage for trusted nodes, and the other one is a public blockchain for nodes-validators.

This is the reason why Lition team mentions co-innovation in partnership with SAP.

SAP develops a permission-storage system, and Lition deals with the permissionless consensus based on Proof of Stake (PoS). And everyone benefits!

Technology key points:

  • Private sidechains for private data storage and public blockchain-validator for security
  • Option to delete data, GDPR compliance
  • High transaction processing speed stated (1–3 sec.)(as to whitepaper)
  • Low commission fees for smart contracts’ execution within the network — $0.6, with a hypothetical minimum of $0.01 in the future
  • API interface for developers’ convenience
  • A lightweight client that can be connected with IoT devices, such as the “smart electricity meter” for example (e.g. Whitepaper, p. 39)
  • PoS-consensus with rewards and Gas fees in Lition tokens (the possibility to switch to Algorand consensus is considered in the technical paper)

What we love about Lition

Tokens sale

As usual, we won’t provide any screenshots with metrics and distributions. You can easily find them in the WhitePaper (p. 52) or on the Lition website.

UPDATE: Initially this section was above the “what we love” part. Since the token metrics and sale details have been updated drastically we decided to put it as a positive aspect of the project.

Let’s go over the basic things and then move on to the more pleasant ones.

Two rounds of sales are planned:

Round 1–48 hours (March 18–20), for all participants on the WhiteList. 7% bonus for the first 24 hours, then — 6%. The round goal is $500,000
UPD 18/03: successfully completed

Round 2–120 hours (March 21–26), available for all. 4% bonus with a gradual decrease of 1% per day. Goal: $1.5 mln.

The project has reduced its cap a couple of times, and by now it seems as the team has found the reasonably fair spot. As to their latest update:

Public sale cap from $3M USD to $2M USD

  • Token amount: 145 mln LIT (total)
  • Individual cap: $25k (reduced from $100k)
  • Token price: $0.1 for 1 LIT
  • Overall cap: $5 mln (reduced from 8, and 15 initially)

As it was mentioned before, the project has already closed the seed round for $2 mln out of $5 mln total (40% bonus). Now, the private round has succeeded with the $0.9 mln. The private round had no additional bonuses in comparison with the public one except the exclusive access to the test system and development. This definitely hasn’t attracted venture speculators but rather integrators instead. A solid plus.

In total, Lition will burn ? 31M tokens, reducing the overall token supply to 145M tokens and the overall valuation from $17.5M to $14.5M.

| More details regarding past and upcoming sales are here

Round 1 sold out: A BIG Success!

Update: Lition’s Token Sale. Summarized.
Reduction in Public Sale

Token refunds, HODL and staking reward systems

We should mention how much attention the team pays to various kinds of rewards. The reward mechanisms are developed for both ordinary investors and Lition sidechain miners.

For miners (stakers):
Miners earn tokens by processing new blocks in sidechains (thanks, Cap!). In addition to transaction fees, every Lition sidechain miner will receive a regular bonus for their “loyalty”. There is an additional reward fund for this purpose, and each sidechain owner must have one. Tokens are distributed between miners in proportion to the sidechain size. This should motivate participants to stay in sidechains even when the activity of the network is low, for example, during the project’s initial stages.

Moreover, the “Genesis Stage” is mentioned in WhitePaper. It is a period of the first two years when Lition stakers will be paid bonuses in tokens out of the Lition Fund regardless of the network’s liquidity.

The calculation given in this paper is a bit strange as the changes in the token price with time are not taken into account. As to the team: “The calculations assume a stable token price. Should the token price change by X%, it would obviously offset the earnings by X%”. Well… ¯\_( ͡° ͜ʖ ͡°)_/¯

For investors
The two programs can be divided into the following types: 1. for those who believe in the project and its growth, 2. for those who want to minimize their risks.

1. “HODL highway”. It encourages holding tokens in the wallet which an investor uses to participate in the ICO.

To avoid FUD among impatient ones, the interest will be calculated for each day of hodling. It will be transferred into your account as soon as you decide to quit the program and withdraw money from your wallet.

According to the schedule, you will get an additional 25% max of the sum being held for three months. Not to mention that you can quit the program partially! In this case, you’ll get the interest on the leftovers on your balance. It’s a fair play.

| More details are here

Fundraising update & Investment cornerstones… and what is the HODL Highway?
Lition has successfully reached their softcap, despite difficult market situations. What’s next?

2. Guaranteed Refund Parachute. The team is going to freeze a part of the funds raised during the ICO and transfer it to a specific fund aimed at risk diversification.

In case the token price drops significantly six months after Lition hits the exchange, Lition will buyback your tokens for half the ICO price, regardless of the current market value. I.e. if the token price is $0.025, you will be able to sell your tokens to Lition for $0.05 to minimize your potential losses. Reacquisition will be done with DAI, a stablecoin pegged to $1.

Lition Guaranteed Refund Parachute
The current crypto market is difficult climate for investors and at Lition, we are fully aware of this. Many…

Each investor can choose one of two proposed reward mechanisms before tokens get listed on an exchange.

Being underrated can still be profitable

After considering all the pitfalls, it became clear that Lition has things in common with LTO and more than just GDPR compliance:

  • From the problem to the technology. Both projects faced issues in practice, at the moment of product launch, and invented a technology capable of resolving them. No hypothetical future challenges, everything developed is needed right now.
  • Attracting other independent investors. Both projects closed softcap long before the ICO. $2 mln were invested in Lition during the seed investment round.
  • Cooperation with the industry giants. We are talking about SAP, first and foremost, — the biggest international software development company founded in Germany. Besides the SAP team’s direct involvement in the product development and the co-innovation agreement (the nature of which we cannot really prove), it should be mentioned that the company intends to add the co-developing to its portfolio. The potential project customer base can be increased up to 400 000+ clients all over the world.

It’s also worth mentioning, that there is another solid project having a partnership with SAP — Modum. They also have a B2B product, and a partnership with the software giant seems to work well since we can clearly see the exposure they get with the help of SAP. Big meetups, presentations and all that should make it easier to attract new clients. Not to shill doe, just analyzing the past examples.

SAP’s aim is to enlarge its product portfolio which is why they do such partnerships. So to us, it seems like an obvious win/win for Lition and SAP, isn’t it?

GASAG — it is a giant in the energy industry, a company that supplies electricity and heat and has a billion-dollar-a-year turnover, founded back in 1847 (it is not a joke). It’s their stations that are connected to MVP Lition and trade energy with real users using the blockchain.

The Volks- und Raiffeisenbank (VR-Bank) — it is a large group of German partner banks with a total of 11,000 branches, total assets of € 891 billion and a customer base of 18.5 million people (as of 2017).

While we were preparing this review, Lition and VR-Bank signed a contract on developing the second MVP — a segregated loan platform (i.e. when a loan is issued as a single one, but from several banks at once). The pilot product will be used for the first transaction in the amount of €20 million. Basically, for now they have a demo, which is currently being moved onto their testnet.

| More details can be found in this Medium article

Lition and Volks- and Raiffeisenbank (VR-Bank) cooperate to process a €20 million syndicated loan…
Lition, the company behind the scalable public-private enterprise blockchain with deletable data features, is working…

  • Little support at the start. Both projects faced similar issues in the community while preparing for ICO. Most people are skeptical about the product, the technology, the team as well as mass adoption. People blamed reviewers to be corrupt and tried to dig up some drawbacks in the project. Nothing really new here.

2018 have already whooped our asses when “Very High” ICO failed, and now we tear down each project we can find fault with. But nobody knows exactly what would happen afterall

God bless the reviewers and influencers like us. But how Lition can perform in the current environment?

Why Lition have some potential

We thought “OK”. Let’s find out whether Lition has any chances in the present-day market. There are cool experts on the team: a former PayPal and eBay CMO as an adviser (Kelly Ford), a current SAP Chief Technology Officer (Dr. Jürgen Müller), Sophia TX, a core blockchain developer ($6.7 mln.capitalization) (Josef Sevcik). The founders, Dr. Richard Lohwasser and Dr. Kyung-Hun Ha, have been working in the energy industry for more than five years, and both are highly experienced. Seems to be a ground for hype and adoption, right?

We had a lot of questions. Why are DApps the only ones represented? Where is their ambitious infrastructure product? Why are most of their developers outsourced teams? (Instinctools) What is the extent of SAP involvement in the project? Lition representatives have clarified all the tough questions to us, being as laconic as only Germans can be. And in some time, it became clear that the team has been focusing more on business development, rather than sitting and waiting for the better times.

Unlike ICO projects focused on the trappings of success, Lition engages in networking with real thought leaders and makes no attempts to hide its immaturity behind colorful images on Medium.

Though you may have noticed we go crazy over images…

At least, that’s what they say about it:

A Legal Framework for Blockchain — Made in Germany — with the Help of Startups like Lition
Blockchain is primed to disrupt the future of business as we know it, and German lawmakers are all for it. The CDU/CSU…

Summing up some information we could find

  • The test network was successfully launched on February 21. According to the team, it already supports the LITION tokens staking. The video of the event:
  • Lition Testnet Block Explorer for Energy Case can be found here, as well as its sources on GitHub.
  • Partnership with the state government within the blockchain law preparation (which is impossible to prove anyway). According to the team, Lition was greenlit by regulators to perform STO using its own blockchain. According to Richard, Lition CEO, (Ivan on Tech interview), the company is going to cooperate with Tokeny (with an assets tokenization platform being their third use-case) and blockchain state regulators. In particular, Thomas Heilmann is mentioned in the interview (he is a businessman, politician, senator on justice matters and consumer rights protection at the Berlin government in 2012–2016).
  • The company is developing two pilot projects with true industry giants — GASAG and VR Bank.

Within one year, Lition ran a gamut from a simple DApp to building a blockchain infrastructure ready for GDPR, partnered up with large organizations, was licensed to engage in energy trade and enlisted the support of the state.

Well, not bad at all. Some projects achieve the same level only after $20+ mln raised and post their Quarterly Progress Reports without any shame.

“Well, why haven’t they postponed ICO until the main network launch? They could have shown more partnerships,” — you might say.

Agree. And it does not make us happy too. But the market itself is a playfield, and if Lition team think they are ready to make further moves in this game, why not to? Do they know what they are doing? We guess so.

There are no “good times” in the market. It is a tough jungle, kids. Although luck is more attractive than efforts for many projects, it cannot be chosen. Only those who move their product forward at all times survive.*

*Especially when you need investor’s money, right? You, wild tech-heads, hehe


Lition definitely has things that have to be worked out. In the whitepaper, Lition mentions its competitors as HyperledgerPolkadot neither of which support the deletion of data on their chains. Hence the only project that would be a better suit for such comparison is LTO Network mentioned in this review, making it a tough competition for both.

LTO obviously has more progress with its product. They use more custom and sophisticated tech under the hood — Waves/NXT blockchain fork for a public verification layer, custom-built sidechains layer written in Scala and custom API tooling for developers available in PHP, Java, Javascript, etc. Whereas Lition’s approach is more focused on building fast under EVM (Ethereum Virtual Machine), reusing most architectural components from Ethereum so that it’s mostly compatible with Solidity (Ethereum smart-contract language) DApp developers. Specifically, Geth and Quorum are being used with some customizations in place. That, in theory, should give them a wider scope in terms of DApp usage. These are both respectable choices since every project has its own goal and vision, so let us keep it neutral on criticism.

What really concerns us in Lition is that their consensus algorithm being the most valuable and crucial infrastructural element is yet to be fully developed.

For second layer scaling solutions, there are no more important things as 1. carefully crafted tokenomics 2. even more carefully crafted consensus algorithm.

Without taught-throughout incentive game, there is little reason for passive token holders to hold. To our opinion LIT token seems to be added somewhat artificially. Even though Lition has a lot to offer from the very start (reward systems mentioned earlier) it may not be enough for far-going ambitions. The Lition testnet currently utilizes the RAFT consensus, which does not protect against malicious nodes in public sidechains, which are to be supported in the mainnet. Right now it obviously cannot compete with the LTO’s LPoI consensus. So we need to see further development from Lition to make any certain conclusions about their technology. Though it definitely should be on a better end, considering SAP involved.

Lition is strong on networking and business relations, but besides the DApp they have a long ride ahead to their mainnet. We also don’t quite enjoy the fact, that with the $2 mln seed round, their accomplishments are still far from ideal.

Anyways, from a short-term investment prespective — with low circulation, successfull past sale rounds, advanced bonuses and (ideally) a nice choice of listing exchange Lition can do the trick fairly easy.

Not to shill or state anything 100%, but we expect to see at least BitMax as such an exchange, considering its good MM performance lately. Overall Lition may seem to be a nice opportunity as a side-part investment of this month, taking something like 20–30% of your ICO portfolio. At the very least, we gonna pursue such a strategy.

Even though the project faces a real need to tie up some loose ends, improve the calculations and post worthy content, both common and technical, we rate it as “Medium+ Interest” with a great wish to put it to “High Interest” down the road. We’ll see how it goes. We expect the team to do the following in March:

  1. Cooperating actively with the community, content battles, point-based competitions (please no AirDrops and bounties). Perhaps, increasing the HODL-Highway bonuses for active community members.
  2. Providing a paper with details on staking and the consensus algorithm. Splitting the main paper into 2 or 3 separate ones.
  3. Medium activity. More content on what Lition is, which companies use it and how it helps them. How is their platform going to integrate the STO and why is it a really promising vector?
  4. More actual #BUIDLING
  5. New integrators
  6. Increasing the team’s and advisers’ locks, more transparency for the community
  7. Active work & ММ after the ICO ends
  8. Xs?
  9. ???
  10. Profit!

In case the team doesn’t fail to fix all the points mentioned, it could join the 2019 #BUIDLERS Hall of Fame after the full-featured mainnet release.


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Disclaimer! Buying tokens does not make you a shareholder of the company, and the profit from such investments is not guaranteed by anyone or anything. This material expresses the subjective opinion of the Luntik team. Stay aware, study all the information independently, and keep a cool head.

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