California’s Department of Motor Vehicles plans to use blockchain technology to keep records, including the issuance of car ownership, and simplify the transfer of such ownership.
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. report good by Fortune.
The move is part of a collaboration between the California DMV, Tezos and blockchain software firm Oxhead Alpha, which announced Successful completion of a proof-of-concept blockchain-based vehicle title solution on January 25th.
Ajay Gupta, the chief digital officer of the California DMV, said that he expects the plan to implement the title database on the blockchain in the next three months. After that, the agency aims to build consumer-facing applications, including digital wallets holding car title NFTs.
Gupta reportedly said, “The backwardness perception of the DMV must change.”
While there are many applications for blockchain, which maintains a decentralized and secure record of data, car titles are one potential option. a startup out of cleveland raised $5 million in 2020 to digitize car titles, and the state of California published report good That same year identified potential pilots for blockchain, including the DMV as one option.
Gupta mentioned that he initially started working on the project in 2020, but had to postpone work due to the pandemic. However, he said the plan to use digital ledgers to create and transfer car titles is an opportunity for the agency to modernize its processes.
Andrew Smith, chairman of Oxhead Alpha, also mentioned that leveraging blockchain technology could help solve issues such as transaction fraud and tracing the movement of cars.
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets across business networks. One of the biggest advantages of blockchain is that it can guarantee the reliability and security of data records.
As noted, US Congressman French Hill Told He plans to promote a progressive regulatory framework for digital assets to ensure that “the US is the place to be for innovation in fintech and blockchain.”
In a report by the World Economic Forum (WEF) earlier this month Told It believes that blockchain technology will continue to be an “integral” part of the modern economy. The organization highlighted the wide-ranging applications of cryptography and blockchain technologies, adding that their use in the financial services sector is already notable.
“Indeed, as a test of the staying power of digital assets and blockchain at the core of financial services (and other sectors of the global economy), look at what big banks and established financial services companies do, not what they say.” “
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