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The State Department’s Motor Vehicles Division is not known for its efficiency. However, a new pilot project from the state of California DMV could change that. The state is now starting a pilot program, which will operate at Tezos, to manage state records around auto ownership.
Let’s dive into what this program means, what it’s all about, and why it could serve as a focal point for institutional-grade crypto adoption in the future.
Automatic Titles On Chains: Why They Make Sense
State-regulated listings, such as auto titles and registrations, are verticals that NFT and crypto proponents cite as one of the key areas that blockchain technology can add enormous value to. Done right, this data-linked digital record can strengthen immutability, reduce and optimize the labor required in recording changes and updating records, and ideally reduce the potential for errors around record changes.
It seems that California is willing to take the plunge, and is teaming up with crypto software company Oxhead Alpha to achieve that vision. Oxhead Alpha will use a specific set of smart contracts on the Tezos blockchain (but not visible on the publicly available unlicensed Tezos chain) to build this product.
In a statement quoted in the Oxhead Alpha press release, the state’s Chief Digital Transformation Officer Ajay Gupta stated that this solution “will avoid repeated verification steps for State/public service entities and customers, thereby reducing workload, economic benefits and auditability.”
Tezos (XTZ) will be the utilized blockchain for an upcoming California DMV pilot project. | Source: XTZ-USD on TradingView.com
Crypto California Road Map
California holds a record of more than 30 million registered vehicles statewide, testing the capabilities and capacities of the Tezos suite of smart contracts it is working on. However, the size and scale of this project, and the state’s reputation for moving at a ‘snail pace’ on execution items like this doesn’t seem to slow output as much as one might expect.
The initiative is rooted in the state’s 2020 ‘Blockchain Working Group’ roadmap which seeks to pave the way for blockchain-based engagement across multiple verticals, such as property, utilities, finance & banking, and more. Roughly 8 months ago, California governor Gavin Newsom signed an executive order on blockchain-based assets to address regulation and innovation.
Now, we are finally seeing a pilot program come to life with true utility and a clear added value proposition. The program is expected to start paying off in early/mid Q2 2023, and we could see the car title as an NFT later in the year. A similar pilot project with the state Department of Food and Agriculture is also expected to materialize in the next few months, with a view to better tracking food-borne contamination, effectively moving data around growers and transporters on-chain.
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