California DMV puts 42 million car titles on blockchain to fight fraud

By Akash Sriram

(Reuters) - California's Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain technology in a bid to detect fraud and smoothen the title transfer process, the agency's technology partners exclusively told Reuters on Tuesday.

The project, in collaboration with tech company Oxhead Alpha on Avalanche blockchain, will allow California's more than 39 million residents to claim their vehicle titles through a mobile app, the first such move in the United States.

Digitizing car titles will reduce the need for in-person DMV visits and the blockchain technology will also function as a deterrent against lien fraud.

Blockchain technology can help detect lien fraud by creating a transparent and unalterable record of property ownership, making it difficult for fraudulent activity to go unnoticed.

"So the first step was creating the 42 million titles associated as a token on the Avalanche blockchain, that's what the State of California DMV has already done and now what they're doing is they're creating a wallet where you download on your phone," said John Wu, president of Ava Labs.

California residents will be able to access their digital car titles starting early next year as the DMV builds out the app and infrastructure for consumer access.

Deloitte tied up with Ava Labs, the company behind the Avalanche blockchain, to enable a new disaster recovery platform to help the U.S. government streamline disaster reimbursement applications to the Federal Emergency Management Agency.

Given the rapid advancements in technology and the shift towards digitization, it is likely that more government sectors will explore the benefits of blockchain technology.

(This story has been officially corrected to rectify the source of the press release to the California DMV's technology partner, in paragraph 1)

(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)