California DMV to digitize car title management system via Tezos

The California Division of Motor Autos (DMV) is testing out the digitization of automobile titles and title transfers through a non-public Tezos blockchain.

The transfer is a part of a collaboration between the California DMV, Tezos and blockchain software program agency Oxhead Alpha, with the latter announcing t profitable proof-of-concept on Jan. 25.

The California DMV has tapped Oxhead Alpha to construct on a non-public Tezos testnet that it has dubbed a “shadow ledger.” It’s primarily designed to change into a blockchain-based replication of the company’s present database.

The California DMV’s chief digital officer Ajay Gupta told Fortune on Jan. 26 that the company is trying to have the shadow ledger ironed out inside the subsequent three months.

Following on from that, it’s trying to roll out purposes corresponding to digital wallets to carry and switch NFT automobile titles, with the DMV appearing as a intermediary to supervise such operations.

“The DMV’s notion of lagging behind ought to undoubtedly change,” Gupta advised Forbes.

Oxhead Alpha’s president Andrew Smith outlined that the California DMV’s blockchain initiative will serve a variety of use instances for the company, significantly in regards to the modernization of its present paper-based methods.

Smith highlighted examples corresponding to transaction fraud, through which automobile sellers cover key details about the automobile’s situation to dump a dud or “lemon” onto unsuspecting patrons.

Whereas defective automobiles have a particular designation on their titles in California, Smith famous that sellers can transfer the automobile over to a different state and conceal the defective designations with relative ease.

With the usage of blockchain-based document protecting, nonetheless, and with different DMVs probably adopting the tech additionally, it could be a lot simpler to digital observe the precise historical past of automobiles, Smith urged.

“So far as the profit for having a persistent digital title, this can be a very apparent use case,” he stated.

Commenting on why Tezos was a good fit for the DMV, Smith outlined within the agency’s Jan. 25 announcement that the blockchain “solves a few of the actually arduous issues in blockchain in a sublime method.”

“The mix of accountable consensus, on-chain governance, and institutional grade safety makes Tezos an incredible platform for delivering production-ready options,” he stated.

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The transfer from the California DMV is prone to be adopted by others within the state shifting ahead. In Could 2022, California Governor Gavin Newsom signed an executive order to direct and discover alternatives for blockchain tech integrations with state authorities businesses.

“California is a worldwide hub of innovation, and we’re establishing the state for fulfillment with this rising know-how — spurring accountable innovation, defending shoppers and leveraging this know-how for the general public good,” stated the governor.