California DMV to use blockchain technology for record keeping
The California Department of Motor Vehicles plans to use blockchain technology for record keeping, including the issuance of vehicle ownership and streamlining transfers of such ownership.
The DMV has tapped a private fork of the Tezos blockchain, an open-source blockchain that can perform peer-to-peer transactions and serve as a platform for distributing smart contracts, according to a recent report from Fortune.
The move is part of a collaboration between the California DMV, Tezos and blockchain software firm Oxhead Alpha, which announced the successful completion of a proof-of-concept blockchain-based vehicle title solution on January 25.
Ajay Gupta, Chief Digital Officer at the California DMV, said he hopes plans to implement the title database on the blockchain will come to fruition within the next three months. After that, the agency also aims to build consumer-facing applications, including digital wallets that hold car-name NFTs.
“DMV’s perception of lagging should definitely change,” Gupta said.
While there are many applications for blockchains, which maintain a decentralized and secure record of data, car titles are a possible alternative. A Cleveland startup raised $5 million in 2020 to digitize car titles, and the state of California published a report that same year identifying possible blockchain pilots, with the DMV included as one of the options.
Gupta mentioned that they originally started working on the project back in 2020, but had to suspend work due to the pandemic. However, he said plans to use digital ledgers to generate and transfer car titles are an opportunity for the agency to modernize its processes.
Andrew Smith, the president of Oxhead Alpha, also mentioned that the use of blockchain technology can help solve problems such as transaction fraud and tracking the car’s movement.
Blockchain is a shared, immutable ledger that simplifies the process of recording transactions and tracking assets in a business network. One of the biggest advantages of blockchain is that it can guarantee the fidelity and security of data records.
As reported, US Congressman French Hill said he plans to advance a progressive digital asset regulatory framework to ensure “America is the place for innovation in fintech and blockchain.”
In a report earlier this month, the World Economic Forum (WEF) said it believes blockchain technology will continue to be an “integral” part of the modern economy. The organization highlighted the widespread applications of cryptography and blockchain technologies, adding that their use in the financial sector is already remarkable.
“Indeed, as a test of the staying power of digital assets and blockchains at the core of financial services (and other areas of the global economy), look at what the big banks and mature financial services companies are doing, not what they are saying.”
