California uses blockchain to reduce fraud and

Everyone hates going to the DMV, and they hate being a victim of fraud even more. California thinks it can reduce fraud and trips to the DMV, and blockchain is the answer. No, this isn’t some crazy new NFT or digital currency, but an immutable online record of property ownership.

The blockchain can be thought of as a public database where everyone can see everything that happens. Once a record is created, it cannot be changed, and it contains important data such as when it was created, which records came before it, etc. Technically, changes are possible, but this would also require changing every subsequent record.

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California hopes to use Ava Labs’ Avalanche blockchain, a product of Oxhead Alpha, to achieve this immutable record. “So the first step is to create 42 million token-related titles on the Avalanche blockchain, which the California DMV has already done, and now what they are doing is creating a wallet that can be downloaded on a mobile phone,” Ava Labs President John Wu told Reuters.

According to the report, residents will be given access to their personal records early next year. From now on, the DMV will work to fully build the application environment and implement the public access process. Notably, the report does not mention how the state will ensure the privacy of citizens.

While some data on the blockchain can be anonymized, the point is that it is transparent and accessible to everyone. Perhaps the state doesn’t intend to put any personal information into the system beyond the relevant vehicle identifiers. It also doesn’t say how it will manage cars that enter or leave the state over time. Regardless, this strategy does seem to reduce title and lien fraud.

Image source: California Department of Motor Vehicles