By decentralizing its functions, the Department of Motor Vehicles (DMV) in California hopes to innovate its job. Ajay Gupta, the state's chief digital officer of the DMV, stated that the organization is currently in the process of transferring all of its registered titles on the blockchain.

In order to modernize the state's vehicle registry and operations, the project, which was originally intended to begin in 2020 but was put on hold due to the epidemic, will create a "shadow ledger" of all of the state's vehicle titles. In collaboration with the cryptocurrency development firm Oxhead Alpha, the new system will be constructed on top of the Tezos blockchain.

According to Fortune Crypto, the DMV will oversee the system under a privately controlled Tezos blockchain instance that is already operational with nodes validating transactions.

The California DMV expects to complete the system's configuration within the next three months and begin developing apps that provide a range of customer-facing features.

One of the proclaimed advantages of a digital, persistent registration is that automobiles sold as lemons, which means they were sold with serious flaws, will continue to be documented as such, protecting potential buyers. Due to the current system, which permits the sale of vehicles with other state registrations without this identification, this was not possible.

A global register of cars in the nation may be created using this system in conjunction with comparable systems from other states, but this would rely on how interested other regions might be in creating a blockchain system.

The ability for customers to transfer titles as non-fungible tokens (NFTs) through a consumer app run by the DMV, provided that users meet all eligibility requirements, is one of the most important applications anticipated. According to Gupta, this kind of functionality is forthcoming. He did not, however, specify when this functionality will be released.