On January 26, the California Department of Motor Vehicles (DMV) announced that it would begin digitizing vehicle titles and title transfers in a pilot on the open-source blockchain Tezos. Shortly after the announcement, DMV and Oxhead Alpha announced that the proof-of-concept phase had been successfully launched.

How does the blockchain bring change to the Title Management System?

According to Andrew Smith, the president of Oxhead Alpha, the DMV’s blockchain project can accomplish a number of objectives, including upgrading the division’s current paper-based processes. Smith highlighted a major problem that blockchain-based record keeping may help solve is fraudulent car industry transactions, such as those that concealed information about a vehicle’s condition. He also emphasized how much easier it would be to track down a car’s true history and suggested that other DMVs might follow the same lead.

Tezos is the ideal platform for offering production-ready solutions due to its combination of responsible consensus, on-chain governance, and institutional-grade security. Governance on Tezos occurs directly on the blockchain.

Is California turning into a blockchain state?

California’s governor Gavin Newsom signed an executive order in May 2022 to direct the investigation of potential opportunities for integrating blockchain technology with governmental agencies. Other governmental organizations in the state are likely to follow the same suit with the decision announced by the California Department of Motor Vehicles in the near future.

The current project with DMV and its partners is anticipated to launch later this year. This may make it possible for Californians to display more than 30 million registered vehicle titles on NFTs.

A pilot initiative with a similar value offer to the DMV will be launched by the state’s Department of Food and Agriculture in a few months.