California DMV digitizes 42 million car titles on the blockchain

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The California Department of Motor Vehicles (DMV) is putting over 40 million car titles on the blockchain in a digital push.

The DMV has partnered with blockchain startup Oxhead Alpha on the initiative, which aims to modernize one of America’s most notorious government services. According to an oft-cited study, queueing at the DMV is the wait that Americans hate the most, topping waiting at hospitals, retail outlets, and fast-food restaurants.

According to sources at Oxhead, the first step was creating digital tokens for the 42 million car titles on the blockchain, which the DMV has already completed. It’s currently building a mobile app that Californians can use to access their records and initiate title transfers from the comfort of their homes, a first in the U.S. The app is expected to go live in the first half of 2025.

“As consumers continue to demand more automation and expect the ability to transact life online, widespread adoption of secure systems is possible with blockchain infrastructure,” commented Oxhead President Andrew Smith.

“We believe that ultimately, value transfer will be embedded within the system itself, proving the technology works at scale and enables other jurisdictions to implement similar approaches.”

With blockchain’s decentralization and immutability, car owners will likely detect any lien fraud quickly. According to vehicle data firm Carfax, there are over 800,000 cases of title washing alone, which is the fraudulent concealment of pertinent car information from a buyer.

The DMV’s shiny blockchain pledge comes with a significant caveat: it’s not really a decentralized system. The department will build the platform on a subnet of the Avalanche blockchain, allowing one central authority to make protocol changes, and even restrict access at will.

The blockchain implementation aligns with California Governor Gavin Newsom’s continued advocacy for blockchain adoption. Newsom signed an executive order mandating the state to support the sector in May.

“It shall be the goal of the State to create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks to consumers, and incorporates California values, such as equity, inclusivity, and environmental protection,” part of the order reads.

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