California DMV Plans to Use Blockchain Tech to Maintain Records

California’s Department of Motor Vehicles (DMV) has plans underway to apply blockchain technology to help in its recordkeeping, including car ownership transfers as well as licensing and registration of new cars and drivers.  The DMV has collaborated with an open-source company, Tezos blockchain, to execute peer-to-peer business undertakings and be a platform used to deploy smart contracts. These sentiments were mentioned by Fortune magazine.

The DMV in California, plus a blockchain software enterprise called the Oxhead Alpha and Tezos, announced a proof-of-concept program that will enable the California DMV to title vehicles as of Jan. 25, 2023, this year.

Ajay Gupta, one of the senior digital officials at the Department of Motor Vehicles, hoped that the plans to create the blockchain title data base would mature within three months. “After that, the DMV aims to work on consumer facing applications like digital wallets which hold the title of the car via an NFT,” said Gupta.

With the many blockchain applications that maintain a decentralized, secure data record, car titles pose a possible use case for this technology. A Cleveland startup mobilized $5 million to digitize the title of cars, and California reported in 2020 that it was conducting some possible blockchain trial projects, with the California DMV included as one of these options.

Gupta said the DMV had started on the project but had to suspend it due to the COVID-19 pandemic. “We plan to utilize the opportunity to use digital ledgers to generate and transfer car titles, in a bid to digitize our DMV processes,” said Gupta. Andrew Smith, Oxhead Alpha’s president said, “Leveraging the blockchain tech would address transaction fraud and car tracking issues.”

Blockchain is a mutual and well-established ledger facilitating processes of transaction recording and tracking of assets in a professional business network. A great blockchain advantage is data record fidelity and security. Congressman French Hill was quoted saying he will promote a digital asset regulatory framework that promotes America as a place of innovation in financial technology and other blockchain technologies.

In a report this month, the World Economic Forum (WEF) said it trusts that the blockchain technology will be a fundamental part of today’s economy. WEF called attention to the extensive cryptography and blockchain tech applications, saying they have an impact in the financial services sector.

Such actions by the DMV in California create positive energy around the blockchain industry. Other actors such as Coinbase Global Inc. (NASDAQ: COIN) may see an uptick in the demand for their services as more people gain confidence in these new technologies.

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