TL;DR Breakdown
- Auto1 FT has put an end to all manual processes related to car financing.
- All the documents and files will now be stored using smart contracts.
A major use case of blockchain is in smart contracts. The popularity and efficiency of these digital contracts led to Auto1 FT announcing its plan to put an end to all the manual processing of documents related to car financing. Auto1 FT’s major business revolves around providing financial solutions for car dealers.
The financial giant is mainly known for car financing. It was reported that the data related to each and every financed car would be stored on blockchain-based smart contracts.
Smart contracts are digital contracts that get executed at a specified time, i.e., the contract will be triggered whenever a condition is met. The condition, in this case, will be related to the financed cars and their life details.
Auto1 FT the first car financer in Europe to switch to blockchain
Auto1 FT is the first car financer firm in the history of Europe to adopt blockchain technology by switching their entire ecosystem. This poses a great challenge to the competitors of the financer, who also need to move ahead from the manual paper-based file system.
Taimur André Rashid is the current MD for the automobile financer. In a statement, the Managing Director stated that the inclusion of smart contracts would provide better security to the entire ecosystem. The efficiency will also increase as the manual process will be replaced by an automated system.
He further states that due to the adoption of blockchain technology in the ecosystem, it will be a lot easier to process paperwork without any errors. The smart contract will act as the brain of the entire ecosystem, storing everything, from fees to the credit score.
For Auto1 FT, these smart contracts will be based on the Ethereum blockchain on which “tamper-proof, unalterable, and transparent” smart contracts will be built. The entire process of paperwork will be reduced to a single agreement on the contract.
