California DMV to Test Blockchain Tech in Partnership with Tezos
- The Department of Motor Vehicles (DMV) of California is developing a system that will be based on blockchain technology.
- The government agency has partnered with Tezos blockchain and Oxhead Alpha, a software development firm.
- The major goal of this partnership is to digitalize the ownership of cars and make the transfer of ownership easy.
- The DMV has been working on the blockchain system since 2020 but halted it due to the pandemic.
Government agencies have recently become more positive towards blockchain technology and have started testing various systems based on it. These agencies not only include traditional financial institutions like central banks but also regulatory authorities and technological departments. It is crucial to note that the Department of Motor Vehicles (DMV) of California is developing a system that will be based on blockchain technology.
In order to test this new technology and integrate it into its current system, the California DMV is collaborating with Tezos (XTZ), a blockchain network that’s based on smart contracts and is quite similar to Ethereum (ETH), and also with Oxhead Alpha, an “expert in cryptography, distributed systems, software development, systems integration, and enterprise infrastructure.”
The government agency of the most populous US state also plans to use the Tezos blockchain to store some of its records, like issuance of car ownership, so that simplification of transfers of ownership can be achieved. It can be said that the major goal of this partnership is to digitalize the ownership of cars and make the transfer of ownership easy.
“DMV sought to explore blockchain technology in order to improve its current processes as documented in the California Blockchain Working Group Roadmap; and incorporate the values detailed by Governor Newsom in his recent blockchain executive order. To that end, DMV selected Oxhead Alpha to build a platform based on responsible innovation, protecting consumers, and leveraging technology for the public good,” said Oxhead Alpha in a statement.
As per a report from Fortune, the chief digital officer at the California DMV, Ajay Gupta, stated that within three months, the agency plans to finalize its “shadow ledger,” i.e., a full replication of the state’s title database on the blockchain. After this, the agency plans to develop consumer-facing applications, including a digital wallet that will allow users to store their ownership details and car title NFTs.
Gupta stated that “the DMV’s perception of lagging behind should definitely change” in an interview with Fortune. He also confirmed that the California agency has been working on this project since 2020, but due to the pandemic, it halted operations.
“DMV is exploring innovative blockchain solutions to help increase efficiency, boost transparency and reduce economic costs. This would avoid repeated verification steps for customer and State/public service entities, resulting in reduced workload, economic benefits and auditability,” Gupta added.
On the other hand, the president of Oxhead Alpha, Andrew Smith, stated that he was surprised at Gupta’s quickness and acceptance of the initiative at a time when the blockchain and crypto industries are facing multiple bankruptcies and frauds. Smith described the current system used by the California DMV as using 18th-century paper-based technology to solve 21st-century transaction fraud.
As earlier reported by Bitnation, the Department of Financial Protection and Innovation (DFPI) of California warned the state’s citizens of 17 crypto website and platforms, stating that these are associated with fraudulent activities. Some of these platforms included the Tahoe Digital Exchange, TeleTrade Options, Tony Alin Trading Firm, Trade 1960, VoyanX.com, and ZC Exchange. The regulator also initiated strict actions against fraudulent crypto companies.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
