The California Department of Motor Vehicles (DMV) is running a project to digitize all of their titles and put them on a blockchain. The project, which will use the Tezos blockchain and is assisted by Oxhead Alpha, a cryptocurrency development company, aims to allow users to transfer titles like NFTs in the future.
Innovation comes to the DMV in California
The California Department of Motor Vehicles (DMV) is working to bring innovation to work by decentralizing its functions. The institution is currently in the process of moving all of its registered titles to the blockchain, according to Ajay Gupta, digital director for the DMV in the state.
The project, which began in 2020 and was halted due to the pandemic, will produce a “shadow ledger” of all vehicle titles in the state, to streamline its registration and operations. The new system will be based on the Tezos blockchain and will be built in partnership with Oxhead Alpha, a cryptocurrency development company.
The system will be managed by the DMV on a privately managed instance of the Tezos blockchain, which is already running with node validation operations, Fortune Crypto reports.
Transfers of titles in Blockchain
The California DMV expects to finish configuring the system in the next three months and start building apps that offer various functionality to customers.
One of the touted benefits of having a digitized persistent registration is that vehicles sold as lemons, meaning they were sold with significant defects, will remain registered as such, protecting future buyers. This was not possible with the current system, which allows cars registered in other states without this designation to be sold.
Another application of this system would be to link it with similar systems in other states to build a global car registry in the country, but this would depend on how interested other areas might be in implementing a blockchain system.
One of the most important applications envisioned is allowing customers to transfer titles as non-fungible tokens (NFTs) using a DMV-managed consumer application, given that users meet all the requirements to do so. This type of functionality is on the horizon, according to Gupta’s statements. However, he did not give a time frame for the release of this feature.
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