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The California Division of Motor Automobiles (DMV) is testing out the digitization of automotive titles and title transfers through a non-public Tezos blockchain.
The transfer is a part of a collaboration between the California DMV, Tezos and blockchain software program agency Oxhead Alpha, with the latter announcing a profitable proof-of-concept on Jan. 25.
The California DMV has tapped Oxhead Alpha to construct on a non-public Tezos testnet that it has dubbed a “shadow ledger.” It’s primarily designed to grow to be a blockchain-based replication of the company’s present database.
The California DMV’s chief digital officer Ajay Gupta told Fortune on Jan. 26 that the company desires to have the shadow ledger ironed out throughout the subsequent three months.
Following on from that, it’s seeking to roll out functions equivalent to digital wallets to carry and switch nonfungible token automotive titles, with the DMV appearing as a intermediary to supervise such operations.
“The DMV’s notion of lagging behind ought to undoubtedly change,” Gupta advised Forbes.
Oxhead Alpha’s president, Andrew Smith, outlined that the California DMV’s blockchain initiative will serve a variety of use circumstances for the company, notably regarding the modernization of its present paper-based methods.
Smith highlighted examples of transaction fraud, through which automotive sellers cover key details about the car’s situation to dump a dud or “lemon” onto unsuspecting patrons.
Whereas defective autos have a particular designation on their titles in California, Smith famous that sellers can transfer the automotive over to a different state and conceal the defective designations with relative ease.
Nonetheless, with blockchain-based document protecting and different DMVs doubtlessly adopting the tech, Smith urged it will be a lot simpler to trace the precise historical past of autos digitally.
“So far as the profit for having a persistent digital title, it is a very apparent use case,” he stated.
Commenting on why Tezos was a great match for the DMV, Smith outlined within the agency’s Jan. 25 announcement that the blockchain “solves among the actually arduous issues in blockchain in a sublime means.”
“The mixture of accountable consensus, on-chain governance and institutional grade safety makes Tezos a fantastic platform for delivering production-ready options,” he stated.
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The transfer from the California DMV is prone to be adopted by others within the state transferring ahead. In Might 2022, California Governor Gavin Newsom signed an government order to direct and discover alternatives for blockchain tech integrations with state authorities businesses.
“California is a worldwide hub of innovation, and we’re organising the state for achievement with this rising know-how — spurring accountable innovation, defending customers and leveraging this know-how for the general public good,” stated the governor.
