California’s Department of Motor Vehicle (DMV) is using the Avalanche blockchain to combat fraud and streamline the vehicle title transfer process.
In cooperation with the Avalanche blockchain company and the Oxhead Alpha cryptocurrency infrastructure, the California DMV has successfully digitized 42 million vehicle titles. The initiative aims to “modernize” the registration transfer process for California drivers and DMV officials, a joint statement read.
Avalanche released a video showing a scene from the movie “The Fast and the Furious,” explaining that what traditionally takes 2 weeks can now be done in minutes. Trusted title transfers have been one of the main challenges for any e-title solution to succeed, the post reads.
“The introduction of registration to Avalanche L1 provides full transparency and additional security, and will allow vehicle owners to track and manage their pink receipt titles digitally.”
The effort is a result of continued customer demand for more automation, said Andrew Smith, president of Oxhead Alpha.
“These systems have historically been available to large financial institutions, but have done little for ordinary citizens. We believe that eventually value transfer will be embedded in the system itself, demonstrating that the technology works at scale and enabling other jurisdictions to implement similar approaches.”
Digital vehicle titles to be picked up via mobile wallet
John Wu, CEO of Ava Labs, told Reuters that after a successful first step of creating 42 million vehicle titles in Avalanche, “they are now creating a wallet that can be downloaded to your phone.”
Through the DMV’s mobile wallet app, vehicle owners will soon be able to pick up digital registrations of their vehicles. In addition, the blockchain will enable 39 million California residents to track their vehicles digitally.
By digitizing vehicle numbers, blockchain would act as a deterrent against lien fraud. It would provide an early warning signal, increasing consumer security.
Billionaire entrepreneur Mark Cuban called the initiative “an incredible step forward for cryptocurrencies.” He criticized SEC Chairman Gary Gensler, saying the initiative would succeed if he did not sue the state for it.
“Unless Gary Gensler sues the state, because the value of the token representing each car number rises or falls depending on the state’s efforts to promote it,” he said.
