Germany’s Auto1 FT will use Ethereum (ETH) for its services to streamline. The company provides financial solutions for car dealers. Auto1 FT is the first car financier in Europe to use blockchain for this purpose.
Smart contracts on Ethereum should ensure that there is virtually no paperwork needed to conclude agreements with dealers. Everything will be arranged via the blockchain, which brings several advantages. Each car financed by Auto1 FT will have its own smart contract.
This ensures that data about the agreement is always stored securely on the blockchain. This data cannot be modified by the technology, which provides extra security. In addition, it makes the entire financing process for a car a lot more efficient. Managing director Taimur André Rashid of Auto1 FI says of the move:
“Our digital solution brings huge efficiencies to car dealers and sets new standards in the mobility industry. By using smart contracts, the total expenditure and documentation for financing a car is kept to a minimum. The increased data security alongside faster and cheaper applications ensures high efficiency. Errors or confusion are virtually impossible thanks to the blockchain.”
The use of smart contracts by Auto1 FT is another example of how smart contracts on the blockchain can make all kinds of processes safer, faster and cheaper.
Meanwhile, more and more major investors are taking an interest in ethereum as an investment. For example, a recently published report by CryptoCompare showed that the wealth in ethereum managed by large asset managers has increased. This while that of bitcoin (BTC) has actually fallen. Grayscale’s Grayscale Ethereum Trust in particular would arouse a lot of interest in this regard.
However, Ethereum still suffers from high transaction costs. The network is therefore busy with the switch to Ethereum 2.0, which should solve the problems. Recently, the first update of this new network was performed.