• The California Department of Motor Vehicles (DMV) is planning to use blockchain technology for record keeping, including the issuance of car ownership and simplifying transfers of such ownership.
• The DMV has partnered with Tezos, an open-source blockchain, and blockchain software firm Oxhead Alpha to develop a proof-of-concept blockchain-based vehicle titling solution.
• The agency also aims to build consumer-facing applications, such as digital wallets that hold car title NFTs.

The California Department of Motor Vehicles (DMV) is embracing the digital age by leveraging the power of blockchain technology for record keeping. This move to use blockchain for the issuance of car ownership and simplifying transfers of such ownership is a reflection of the agency’s commitment to modernizing its processes.

The DMV has tapped a private fork of the Tezos blockchain, an open-source blockchain that can execute peer-to-peer transactions and serve as a platform for deploying smart contracts. This collaboration between the California DMV, Tezos and blockchain software firm Oxhead Alpha, has resulted in the successful completion of a proof-of-concept blockchain-based vehicle titling solution on January 25.

Ajay Gupta, the chief digital officer at the California DMV, stated that he hopes the plans to materialize the title database on blockchain come to fruition in the next three months. Following that, the agency also aims to build consumer-facing applications, such as digital wallets that hold car title NFTs. He expressed enthusiasm for the upcoming changes and believes the agency’s perception of lagging behind should definitely change.

Blockchains have numerous applications, and car titles are one of the options. A startup out of Cleveland raised $5 million in 2020 to digitize car titles, and the state of California published a report the same year identifying possible pilots for blockchain, with the DMV included as one of the options.

It is clear that the California DMV is taking strides to modernize its operations and is leading the way in the adoption of blockchain technology. With the completion of the proof-of-concept and the intent to build consumer-facing applications, the agency is on track to revolutionize the car ownership process.