Blockchain Marketplace for O-Rings In Development By Sterling

Announcements, Blockchain, Innovation | December 28, 2017 By:

Hydraulic and pneumatic seals supplier Sterling Consolidated Corp. has partnered with blockchain tech agency Blockchain Driven to build DiMo, a blockchain-based international marketplace for O-rings.

Sterling operates through O-rings and rubber products segment. The company conducts its operations through four subsidiaries: Sterling Seal, ADDR Properties, Q5 Ventures and Integrity Cargo Freight Corporation. Its subsidiary, Sterling Seal, engages primarily in the distribution and sale of O-rings, rubber seals, oil seals, etc. O-rings and the other products that Sterling Seal sells are used in a range of industries, including automotive, pump, transmissions, oil and energy, machinery and packaging. Sterling Seal sells directly to smaller distributors and original equipment manufacturers in need of seals. It has warehouse in Neptune, New Jersey, as well as other facilities in the United States.

Blockchain Driven is a team of blockchain experts, comprised of founders, researchers, and subject matter experts. It helps companies achieve many goals with respect to blockchain implementation, innovation, ideation, strategy development, prototyping, and product development.

The goal of establishing DiMo is to solve the cash flow burdens from upfront inventory payments and high carrying costs problems for O-ring distributors, as well as to speed the tire distribution process. The company said the plans for the marketplace are in early and preliminary stages, and total funding and planning requirements have not been established.

Darren DeRosa, CEO of Sterling, said they believe that, based on its highly fragmented structure with thousands of distributors and very few suppliers in Asia, the O-ring industry lends itself perfectly to utilization of the blockchain and smart contract technology.

“Our goal is to solve a problem for the entire O-ring industry and bring a new technology to a mature industry,” said DeRosa. “Currently, there are very high inventory carrying costs, and international suppliers require up-front payments on purchases, which take months to deliver. Both of these factors put great stress on the cash flow of the average O-ring distributor. With DiMO, we believe we can reduce financing costs and inventory carrying costs for the distributor and create better and faster service for O-ring customers.”

He added that Blockchain Driven will lead their integration efforts. The Blockchain Driven team will help take their strategic goals and integrate them on the blockchain, utilizing the latest industry research and technology.