California’s Department of Motor Vehicles intends to use blockchain technology for record keeping, including the issuance of automobile titles and facilitating transfers of such titles.
According to a recent story published by Fortune, the Department of Motor Vehicles (DMV) has adopted a private fork of the Tesos blockchain. Tezos is an open source blockchain that can carry out peer-to-peer payments and serves as a framework for deploying smart contracts.
The move is due to an agreement between the California Department of Motor Vehicles (DMV), blockchain software company Oxhead Alpha, and Tesos. On January 25, they revealed (1) successful implementation of a proof-of-concept blockchain-based car titling system.
Ajay Gupta, chief digital officer of the California Department of Motor Vehicles (DMV), has expressed hope that plans to implement blockchain title data will come to fruition within the next three months. Thereafter, the government plans to develop applications aimed at the general public, such as digital wallets capable of holding automobile title NFTs.
According to the report, Gupta said, “The attitude of the backward DMK must definitely change.”
Potential Uses and Benefits of Blockchain in Registry
Car titles are a potential use case for blockchains, which are capable of holding distributed and secure data, although blockchains have many other applications.
In 2020, a startup in Cleveland raised $5 million to computerize car titles. That same year, the state of California released a report identifying potential pilots for blockchain, with the motor vehicle industry as one of the options. Both of these events took place in California.
Gupta said they started working on the project in 2020, but due to the pandemic, they were forced to stop work on the project. However, he said the agency is likely to update its procedures to use digital ledgers to create vehicle titles and transfer car titles.
In addition, Andrew Smith, president of Oxhead Alpha, said that using blockchain technology could help solve problems such as transaction fraud and tracking the location of automobiles.
In a corporate network, documenting transactions and tracking assets can be facilitated by using blockchain, a distributed and immutable ledger. Blockchain’s ability to guarantee the accuracy and security of data records is one of the most important advantages offered by this technology.
According to the report, French Hill, a member of the U.S. House of Representatives, said he wants to promote a forward-thinking regulatory framework for digital assets, saying, “America is the place for progress in fintech and blockchain.”
The World Economic Forum (WEF) expressed its hope, in a study published earlier this month, that blockchain technology will be an “integral” part of the modern economy. The organization underscored the many applications of cryptography and blockchain technology, and their use in the financial services industry is already significant.