Decentralized Energy is Essential to a Future for DeFi

Decentralized Energy (DeEn) leverages Ethereum’s DApps and Smart Contracts for transactions and trading of energy properties. In a paper published on July 31, Lition, a Berlin-based sustainable tech startup that introduced a blockchain-based marketplace enabling customers to choose between various energy suppliers, DeEn has the same “structure, advantages, and logic” as DeFi or Decentralized Finance.

DeFi should include DeEn

Compared to DeFi, where digital asset transactions are peer to peer, DeEn lets customers know exactly where their energy comes from, said Lition. It empowers customers to choose where their energy comes from, quickly, and securely adjust it. As an example, the company used its decentralized marketplace to state:

“Lition’s very own Energy Exchange — a peer to peer (P2P) energy trading platform that is open and direct to consumers. Using smart contracts and blockchain technology, unnecessary middlemen are eliminated; this allows for affordable green energy, producers earning higher yields, and the promotion of sustainable energy.”

Lition believes that energy sharing has long been overly centralized so that consumers are often unable to opt-out of the current energy market. Though DeFi has been changing how people share assets in the financial market. It should also be part of achieving a true decentralized vision and decentralized energy. Lition added:

“As the DeFi “machine” continues to grow, the system itself requires more and more energy to run and maintain. The source of that energy is currently unclear. The DeFi space requires DeEn to detach itself from state/corporate-owned energy dependencies and become truly decentralized.”

The future is a new, sustainable global according to the post. The EU set a carbon-neutral target for 2050 and placed the technologies of solar. And the wind at the forefront of the transition.

Blockchain is underpinning several green energy projects, as previously reported, with Germany shutting down both nuclear and coal-based power generation.