California DMV Partners with Tezos for Digital Car Titles

A silver truck driving through a rainy night.
  • The DMV is building a private version of the Tezos blockchain to manage vehicle titles. 
  • The department wants to combat the perception that it’s lagging in tech. 
  • Blockchain technology has many potential use cases in government.

Long lines at the DMV may soon be a thing of the past, at least in California. The agency is partnering with Tezos to streamline the process of transferring vehicle titles. 

California’s Department of Motor Vehicles (DMV) partnered with Tezos blockchain and crypto software firm Oxhead Alpha to create its private blockchain. 

The DMV’s distributed ledger would be a private version of the Tezos blockchain. The agency thinks a private blockchain would be more secure than a public one. 

The ledger would contain all data from the state’s database, which would help the agency combat title fraud. It would also enable owners to transfer ownership of vehicles through the blockchain. 

Ajay Gupta, the chief digital officer at the California DMV, revealed the collaboration in an interview with Fortune

Gupta said the agency hopes to create its own “shadow ledger” in the next three months. After that, the DMV would be ready to build customer-facing applications. 

“The DMV’s perception of lagging behind should definitely change,” said Gupta.

Blockchain Use Cases in Government 

While cryptocurrency is still far from mainstream acceptance, blockchain tech may have already reached it. Both private and public institutions are embracing the benefits of distributed ledger tech. 

The DMV blockchain network is just one example that highlights the potential use cases for blockchain tech in government. 

For instance, blockchain software firm ConsenSys details several DLT use cases in government. For instance, blockchain tech could help power all the technical units in future smart cities without overwhelming current infrastructure.

Moreover, many central banks are already looking into blockchain-based Central Bank Digital Currencies (CBDCs).  

Blockchain can also help track educational credentials, land deeds, and tax receipts. The technology may track student loans, social security payments, or vaccination status.

On the Flipside

  • Not everyone is enthusiastic about the use of this tech in government. Some believe blockchain technology could lead to less privacy and autonomy for citizens. 

Why You Should Care

Aside from spending less time waiting in lines at the DMV, crypto traders have other reasons to care about this development. If governments use blockchain tech more, this could remove some objections critics have about crypto. 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

David Marsanic

David Marsanic is a business journalist specializing in tech and crypto. He focuses on institutional investors, venture capital and the intersection between DeFi and tradFi. He wants to help retail investors understand how major financial institutions impact the crypto space. He has been active in blockchain and crypto since 2020 and believes that there is huge potential in decentralized tech and finance.