What could the benefits be to the automotive Industry with blockchain.

A new initaitive originated from the team at Sarthe Special Vehicles is set to revolutionise how a low volume ultra-sports car builder can create cars with the adoption of crypto currency and blockchain technology.

We met up with Ian Howe the founder of Sarthe to explore what on earth this is all about and here are some of what we learnt:

EN: So what is blockchain and is this something to do with Bitcoins?

IH: Back in 2008 just after the banking crisis, a technical  whitepaper was created by Satoshi Nakamoto that discussed the potenial of decentralising the way money can flow from one person to another without the need for a bank. The Bitcoin was born, a digital currency, which most people have heard of, but more importantly was the proposed technology behind how this digital asset could be exchanged across a network. This is the blockchain and at its core is a network of ‘nodes’, and can be many thousands that confirm the details of each person to person transaction made therefore eliminating any intermediary service, like a bank. So in essence if I want to send you some crypto currency to you my encrypted transaction would only work if it is verified by the blockchain. This ultimatley creates a trust network and crucially eliminates the potential fees from a traditional transaction. This is especially important for international transactions.

EN: So in reality its cheaper and faster?

IH: Yes, infact, although information moves around the world instantly, a single payment from one country to another using traditional systems, is slow, expensive and unreliable and a typical international payment, takes 3-5 days to settle, has an error rate of at least 5% and an average cost of $42. Worldwide, there are $180 trillion worth of cross-border payments made every year, with a combined cost of more than $1.7 trillion a year.

EN: How is this being used in industry?

IH: The idea of digital assets and blockchain have come a long way from the almost libetarian vision of the originators and major organisationas are looking at blockchain to streamline thier supply chains. Businesses such as Amazon, Santander Bank and Walmart can see the potential savings of using this technology.

EN: How will Sarthe use this?

IH: Our goal is to create encourage the use of crypto transations over blockchain for products and services for the creation of our cars. We believe that this is the future, and we plan to be at the forefront of this adoption, this is a very exciting oppotunity for our supply chain to be built on blockchain technology. This will naturally create cost efficiencies in our operations.

EN: So what stage are you at with this adoption?

IH: The development of a blockchain supply chain will be one element of wider web based app that we will be an integral part of the build of the Sarthe suite of products and to help this succeed we will be launching a Token Sale Event to help raise funds and profile to the project in the October timeframe.

EN: Great, we look forward to hearing more about this in the forthcoming weeks.