California’s DMV Explores Digitizing Car Titles on Tezos Blockchain

Whether an individual may be in support or against the idea of the mainstream adoption of cryptocurrency, they cannot deny that the technology seems to be slowly making headway in a large variety of countries, industries, and organizations. One of the newest organizations to begin dabbling in crypto is one that could probably benefit from a little modern innovation- the Department of Motor Vehicles (DMV).

The California DMV has revealed that they are working with the blockchain software firm Oxhead Alpha to test the digitization of car titles and their transfers on the Tezos blockchain. Oxhead Alpha revealed in a press release from January 25th that they have successfully completed a “proof-of-concept blockchain based vehicle titling solution.”

Smart contracts on the Tezos blockchain help “to solve trusted vehicle transfers.” Oxhead Alpha’s president, Andrew Smith, stated that transaction fraud would be difficult with blockchain-based record keeping. Faulty vehicles have a special designation on their titles in California, but a prospective seller can take the car to another state and hide these designations easily. If the title were on the blockchain, however, it becomes far easier to keep track of the vehicle’s history.

When an individual pictures interacting with the DMV, they most likely imagine the large amount of time they need to spend there. Oxhead Alpha states that the blockchain solutions being explored will cut this down. “The smart contracts enable escrow behavior with DMV administered checkpoints to ensure compliance and reduce processing time,” the press release reads. By digitizing car titles as well as a large amount of other DMV document libraries, the blockchain will “help increase efficiency, boost transparency and reduce economic costs.”

The DMV is reportedly looking into incorporating blockchain technology as part of the plan described in the California Blockchain Working Group Roadmap, a detailed analysis of some of the benefits, potential uses, and risks of blockchain technology in state government and for businesses operating in California. The DMV is listed as the first of three recommended pilot groups for testing, stating the technology “could improve its current processes” by “building a common blockchain platform for tracking a vehicle’s lifecycle.” Other proposed use cases include digital wallets for individual authentication and “creating a fine-grained security structure for sharing driver records across states.”

Governor Gavin Newsom apparently agrees with the idea of fostering the innovation and incorporation of blockchain technology within California’s borders. On May 4th, 2022, Governor Newsom signed an executive order “to spur responsible Web3 innovation, grow jobs, and protect consumers.” Under the executive order, California will explore how to develop blockchain technology in a way that will protect the interests of California consumers. 

Mainstream adoption of cryptocurrency appears to be becoming more of an inevitability as time marches forward. Bitstamp’s Q1 2022 Crypto Pulse survey asked the opinions of over 28,000 retail and institutional investors, with 82% of institutional investors stating they believe crypto will be completely mainstream within 10 years. Perhaps in another nine driver’s will be carrying their car titles in their hardware wallet of choice.

This is a Contributor Post. Opinions expressed here are opinions of the Contributor. Influencive does not endorse or review brands mentioned; does not and cannot investigate relationships with brands, products, and people mentioned and is up to the Contributor to disclose. Contributors, amongst other accounts and articles may be professional fee-based.

Tagged with: