ChromaWay will partner with Daimler to optimize their internal leasing processes with relational blockchain
Esplix will allow a simple and more secure way to process these leasings
Daimler Grund Services GmbH (DGS), a subsidiary of the international vehicle manufacturer, and ChromaWay AB, blockchain pioneer company from Sweden, have partnered to optimize Daimler Group’s internal leasing process using blockchain. Daimler Grund Service, is a group-owned real estate company that owns the group’s properties in Germany and is responsible for internal lease agreements. The properties consist of office space, storage, special use facilities, etc. and are leased internally to other companies in the group.
The Daimler internal leasing process, reinvented.
The market price for each lease is recalculated several times per year, with the updated price being communicated and approved by several stakeholders within the group. Although functional, the high volume of properties being managed, and the use of several non-integrated IT systems, introduces delays and a lack of immediate transparency in the process.The lack of transparency and automation, as well as the potential for errors, are some of the problems that Esplix, ChromaWay’s product for smart contracts, was able to solve.
Esplix for internal leases
ChromaWay was able to implement the Esplix contract very quickly thanks to a rapid prototyping toolset and the extensive work done by DGS to simplify and map the workflow of the leasing system. Esplix contracts define a sequence of actions and the different actors who can perform them. In the case of DGS, the essence of the contract was the following sequence of actions:
Daimler Grund Services: set price
Daimler accountancy: approve price
Tenant: approve price
Daimler accountancy: confirm payment
The contract runs throughout the year, with each updated rent value being committed by DGS as and when it becomes available. This means that all of the other actors in the network have immediate and reliable access to information about the rent that they will ultimately pay.
The smart contract is published to a blockchain with permissioned members. In theory, these members could include the Daimler finance, legal, auditing and/or accounting divisions at Daimler, and/or the property owner, the property owner, and any other third party service providers party to the leasing process. In this pilot version, ChromaWay controls the blockchain nodes. Ultimately it is hoped that this process can be extended to optimise more processes within Daimler group, and to integrate external parties into Daimler group processes.
“The collaboration with ChromaWay helped us to get quickly started with a blockchain project. With their expertise and working software we could right away focus on how to utilize the advantages of blockchain for our processes. This is only the first step of using this exciting technology in our real estate department and I am looking forward to how this develops further!”-- Achim Jedelsky, Head of Processes / IT, Daimler Real Estate GmbH (project lead for DGS)
Henrik Hjelte, CEO and Founder of ChromaWay, stated:
“We are extremely excited to collaborate with DGS to bring relational blockchain technology to their internal leasings. We believe that the solution, built with Postchain and Esplix, will solve a current problem for the company. We are looking forward to collaborating further with Daimler DGS and to explore new possibilities for our technology to solve existing problems”.
The blockchain solution allows contract participants to review and sign every step of the leasing agreement as it is executed. All actions are signed by contract participants and notarized by the Postchain network. The blockchain stores the contract code, and each instance of that contract consists of a sequence of “commitments” which are interpreted by the Esplix client software. DGS can instantiate as many contracts as desired, and can simulate any role in the contract, as well as inviting others to participate in the contract in any role.
ChromaWay’s Esplix and Postchain (also used in the solution) are open-source.
Daimler Grund Services GmbH (DGS) is a 100% subsidiary of Daimler AG and owns the German property of the group. As a real estate specialist, it is taking on all ownership responsibilities for their portfolio including subleasing buildings to Daimler AG and other group owned entities.