California partners Avalanche blockchain for car title registration
Introduction
It is great to see more institutions adoption blockchain technology and increase the number of use-cases there are. Another State in the US has shown its confidence in blockchain technology by moving its vehicle ownership registration to Avalanche. The state is California. This move will likely kick-off great things to come for blockchain adoption in that state and US as a whole.
42 million vehicles titles on Avalanche
The California’s Department of Motor Vehicles (DMV) is successfully completed a migration of its car titles services to the Avalanche blockchain. So far, 42 million car titles have been moved to Avalanche, in preparation for digital ownership claims of the titles by car owners.
For many years now, the DMV offers its services using traditional software which requires vehicle owners to visit the office and spend a lot of time registering their vehicles or updating owners data. But with this digital transformation, most aspects of car registration could now be completed online with Avalanche providing the smart contract for transactions.
Once the system is fully set up, a smart phone mobile wallet would be made available for car owners. Through the wallet, car owners would be able to claim titles by signing a transaction on the wallet using a government-issued identity instrument. The wallet which is on the Avalanche blockchain would serve as trustless third-party to validate the documents and confirm the transaction. In essence, car owners in the state could complete Title claims in less time and would need to always be physically available at a DMV processing center.
The president of Avalanche labs announced this innovative adoption of blockchain technology and recalled the benefits that would come to the DMV and car owners in California from this digitization exercise. Here are his official comments:
Blockchains are the most advanced tool any organization can leverage to maximize efficiency, maintain compliance and protect consumer data – vital components for a government serving its constituents. Today’s landmark announcement is a clear-cut example of how blockchain technology simultaneously benefits enterprises and consumers and Ava Labs is proud to partner with the California DMV as it transforms essential services to create a more transparent, accessible and secure user experience for citizens. source
Why Digitization is good for the DMV
This project would be a great way to service the more than 39 million residents of California. To begin, a lot of complains have been made by car users in the state over how slow the DMV services are. This is entirely a problem created by traditional systems that rely so much on brick-and-wall services.
Car owners often need to be present at DMV offices to do car registrations and claim their title. There are X users like this one that have highlighted how slow the DMV services are. With long queues of people waiting to claim their car titles, it could be a frustratingly long wait. Besides, there are also complains that the department is short-staffed which makes it take longer than necessary for citizens to be attended to.
With this transition to digital titles, it would be much faster to complete the entire process. Besides, there would little or no need for users to always be at the DMV offices since the blockchain-powered digital platform would be accessible from any devices on the internet. But going beyond just a digital platform, the use of Avalanche blockchain brings all the benefits of blockchain technology to this service.
Validating ownership and fighting fraud
One of the key objectives of this project is to use the blockchain to create an authentic record of the car owner which is stored on the blockchain and can be verified. Blockchain data is immutable. Thus, the project would build an absolute record of trust on the blockchain which cannot be altered. This would solve one major problem in car ownership which is fake lien.
Fraudsters often use fake data about a person to create and place a lien on the car, making it impossible for it to be sold or its title transferred to another party. The scammer might then demand that the victim pay some money or ransom in order to remove the lien. This is a popular type of scam even within the DMV. But here is where the Avalanche blockchain would be useful in identifying such fraud.
The blockchain would prove to be a store of original data of car owners. Hence, even if a scammer prepares a fraudulent lien against a vehicle using false data, the blockchain would be used to verify the data and revealed as fake. Thus, but fake lien and any other form of scam would be very difficult because the blockchain used in this project would always remain an absolute source of truth for data verification.
Finally
This project is amazing for many reasons and its hoped that by the time it fully becomes available to California citizens sometime in 2025, they benefits would be worth it. Right now the DMV and Avalanche are working together to build all the resources needed to make it work and stay functional such as the wallet mobile app. The wait would be worth it. Sooner or later, car owners would stay at the comfort of their homes and complete car title transactions powered by Avalanche blockchain.
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note: thumbnail edited from pixabay
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