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September 20, 2020
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Decentralized energy is a key element of DeFi’s future |

Decentralized Energy (DeEn) uses DApps and Ethereum smart contracts to carry out transactions and trade in energy assets. In a document released on July 31, Lition, a startup in Berlin that launched a blockchain market that allows consumers to choose between multiple energy suppliers, stated that DeEn has the same “structure, advantages and logic” as DeFi, or decentralized finance.

DeFi should include DeEn

Like DeFi, where digital transactions take place on a peer-to-peer model, DeEn allows consumers to know exactly where their energy is coming from, Lition said. This allows consumers to choose where their electricity is coming from and to switch supplier quickly and safely. The company used its decentralized market as an example:

“The Lition Power Exchange itself – a peer to peer (P2P) energy trading platform that is open and direct to consumers. By using smart contracts and blockchain technology, unnecessary middlemen are eliminated, allowing for affordable green energy, allowing producers to earn more and promote renewable energy. “

Lition believes that energy sharing has long been too centralized, so consumers often cannot decide to leave the current energy market. While DeFi is changing the way people trade assets in the financial market, achieving a truly decentralized vision and decentralized energy should also be part of the process. Lition added that:

“As the DeFi“ machine ”continues to evolve, the system itself requires more and more energy to operate and maintain. The source of this energy is currently unclear. The DeFi space requires DeEn to break away from state / corporate energy dependencies and become truly decentralized. “

According to this postulate, the new ecological world is the future. The EU has set itself a 2050 carbon reduction target and has put solar and wind technology at the forefront of the transformation process.

With Germany shutting down all nuclear and coal production, blockchain has become the backbone of many renewable energy platforms.

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