Blockchain
California DMV Puts 42 Million Auto Titles on Blockchain to Fight Fraud
By Akash Sriram
(Reuters) – The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain technology in an effort to detect fraud and streamline the title transfer process, the agency’s technology partners told Reuters exclusively on Tuesday.
The project, in partnership with technology company Oxhead Alpha on the Avalanche blockchain, will allow California’s more than 39 million residents to apply for vehicle titles via a mobile app, the first of its kind in the United States.
Digitizing car titles will reduce the need for in-person visits to the DMV, and blockchain technology will also serve as a deterrent against tax lien fraud.
Blockchain technology can help detect lien fraud by creating a transparent and unalterable record of real estate ownership, making it difficult for fraudulent activity to go undetected.
“So the first step was to create 42 million associated securities as tokens on the Avalanche blockchain, which is what the California DMV has already done, and now they’re creating a wallet that you can download to your phone,” said John Wu, president of Ava Labs.
California residents will be able to access their car’s digital titles starting early next year as the DMV develops the app and infrastructure for consumer access.
Deloitte has partnered with Ava Labs, the company behind the Avalanche blockchain, to enable a new disaster recovery platform that will help the U.S. government streamline disaster reimbursement claims with the Federal Emergency Management Agency.
Given the rapid advances in technology and the shift towards digitalization, it is likely that more government sectors will explore the benefits of blockchain technology.
(This story has been officially corrected to correct the source of the press release to the California DMV’s technology partner, in paragraph 1.)
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)