California DMV to Digitize Vehicle Title Management System Through Tezos

California DMV’s Chief Digital Officer Ajay Gupta Emphasized that the Agency is looking to modernize its current systems and carry Greater Transparency to vehicle title Transfers.

The California Department of Motor Vehicles (DMV) is trying out the Digitization of Vehicle titles and title Transfers by means of a private Tezos Blockchain.

The move is part of a collaboration between the California DMV, Tezos and blockchain software firm Oxhead Alpha, with the latter reporting t fruitful proof-of-concept on Jan. 25.

The California DMV has tapped Oxhead Alpha to build on a private Tezos testnet that it has named a “shadow ledger.” It is basically intended to become a blockchain-based replication of the agency’s current database.

The chief digital officer of the California Department of Motor Vehicles told Fortune.The shadow ledger is supposed to be figured out within the next three months.

Following on from that, it is looking to carry out applications, for example, digital wallets to hold and transfer NFT vehicle titles, with the DMV acting as a middleman to regulate such operations.

“The DMV’s impression of falling behind should change,” Gupta told Forbes.

Oxhead Alpha’s president Andrew Smith outlined that the California DMV’s blockchain initiative will serve an extensive variety of use cases for the agency, particularly concerning the modernization of its current paper-based systems.

Smith highlighted examples, for example, transaction fraud, in which vehicle sellers conceal key information about the vehicle’s condition to offload a flop or “lemon” onto clueless buyers.

While faulty vehicles have a special designation on their titles in California, Smith noted that sellers can move the vehicle over to one more state and conceal the faulty designations effortlessly.

With the use of blockchain-based record keeping, however, and with other DMVs potentially taking on the tech also, it would be a lot easier to digital track the actual history of vehicles, Smith proposed.

“As far as the advantage for having an industrious digital title, this is a plain to see use case,” he said.

Commenting on why Tezos was ideal for the DMV, Smith outlined in the firm’s Jan. 25 announcement that the blockchain “solves some of the really difficult issues in blockchain in a rich way.”

The combination of responsible consensus, On-Chain Governance, and institutional grade security makes Tezos a great platform for Conveying production ready solutions.

The move from the California Department of Motor Vehicles is likely to be followed by others in the state. In May 2022, California Governor Gavin Newsom marked an executive request to direct and explore opportunities for blockchain tech integrations with state Government Agencies.

“California is a global hub of innovation, and we’re setting up the state for progress with this emerging technology — prodding responsible innovation, safeguarding consumers and leveraging this technology for the public good,” said the Governor.