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# What is Lition? GDPR Compliant Sidechains
- URL: https://dexplain.com/what-is-lition-gdpr-compliant-sidechains/
- Published: 2020-08-31T10:32:00.000Z
- Updated: 2021-12-01T10:33:03.000Z
- Description: Discover Lition, the team building scalable sidechains on Ethereum that allow for privacy and GDPR compliant dApps.
- Author: wizardfromspace
- Tags: Lition, Sidechains, Layer 2, Ethereum, Scalability, dApps

[Lition](https://www.lition.io/?ref=dexplain.com) aims to enable the commercial usage of dApps on [Ethereum](https://dexplain.com/how-to-buy-ethereum-with-a-credit-card-on-binance/). To do this the Lition protocol will add on various features such as privacy, scalability and the ability to delete data. Essentially, the team is building a sidechain solution for Ethereum which allows companies to build dApps that follow GDPR compliance.

![](https://dexplain.com/content/images/2021/12/Lition-article-image.webp)

## What is Lition?

Much like [Loopring](https://dexplain.com/loopring-the-solution-to-high-ethereum-gas-fees/), the Lition protocol will leverage zero knowledge proofs to offer teams infinite scalability. Theoretically, block times will confirm and verify within 3 seconds which is fast enough to support real time [payment applications](https://dexplain.com/swipe-network-launches-staking-with-12-apr/). Furthermore, these side chains will secure through [staking](https://dexplain.com/cold-staking-and-privacy-focused-defi-coming-to-qtum/) the native LIT tokens, where node operators can earn rewards.

**I never heard of this team…** Lition is already operating a P2P energy trading platform in Germany, supplying customers with green power and saving them money. As a result, institutions are taking notice: partnerships with Microsoft, N26, SAP, and TomoChain.

- LIT market cap is currently $8M, with big potential to grow given the use case. The risk here is the project does not have a high profile exchange listing, meaning low daily trading volumes. Watch announcements!

**Real use case for enterprises…** The ability for companies to control the data on their [dApp’s sidechain](https://dexplain.com/tag/dapps) is the real selling point here. Data that can be public or private, and features to delete it remove many headaches for companies to embrace [blockchain](https://dexplain.com/tag/blockchain). To summarize, being GDPR compliant is a very big deal for companies, especially those based in Europe.