California DMV building blockchain on Avalanche for title transfers

California’s Department of Motor Vehicles (DMV) is building a DMV-run blockchain on the Avalanche network to streamline vehicle title transfers for the US state’s 39 million residents, according to an announcement. 

The DMV has already successfully digitized 42 million car titles on layer-1 blockchain network Avalanche, which will soon be claimable on the DMV’s mobile wallet app in minutes using a verifiable credential, according to 0xhead Alpha, the Web3 consultancy that implemented the system.

Title transfers will be mediated by escrow-like Avalanche blockchain smart contracts that enable users to track and manage vehicle titles digitally. This could potentially reduce the need for physical trips to the DMV, according to the announcement.

“As consumers continue to demand more automation and expect the ability to transact life online, widespread adoption of secure systems is possible with blockchain infrastructure,” said Andrew Smith, president of Oxhead Alpha, while adding:

“These systems have historically been accessible by large financial institutions but have done little for regular citizens. We believe that ultimately, value transfer will be embedded within the system itself, proving the technology works at scale and enables other jurisdictions to implement similar approaches.”

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The DMV’s initiative is one of the first implementations of California’s broader plan to integrate blockchain solutions into government operations. The state’s plan also seeks to improve the regulatory environment for Web3 companies.

This initiative is one of the first milestones in California Governor Gavin Newsom’s vision of integrating blockchain solutions into government operations, reaffirming California’s commitment to adopt new technologies and improve efficiency and accessibility within public sectors.

In April, the Avalanche C-Chain network integrated with payment firm Stripe , allowing verified Stripe users to buy Avalanche’s AVAX ( AVAX ). Eight Avalanche Web3 apps have also been integrated with the platform.

“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,” said John Wu, president of Ava Labs.

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