California’s Department of Motor Vehicles (DMV) has digitised 42 million car titles using blockchain technology.

Oxhead Alpha, which is collaborating with DMV for the project, announced the large-scale implementation on Avalanche blockchain, created by Ava Labs.

These digital titles, which will tackle 'lien fraud', will soon be claimable by vehicle owners through the DMV’s secure mobile wallet app using a verifiable credential. 

A title lien for a car is a safeguard for the lender or another party with interest in a driver’s vehicle. It is usually filed with the DMV to create a public record. If a driver defaults on a loan or fails to make timely payments, the lender has the right to repossess a car.

Andrew Smith, President of Oxhead Alpha, said: “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.”

John Wu, President of Ava Labs, said: “Blockchains are the most advanced tool any organisation can leverage to maximise efficiency, maintain compliance and protect consumer data – vital components for a government serving its constituents.”

Blockchain tech creates an ‘unalterable’ record of ownership, acting as an immutable ledger that bad actors cannot manipulate, making fraudulent activity easier to detect.

In January this year, Oxhead Alpha said it had successfully completed a proof-of-concept blockchain based vehicle titling solution in partnership with California DMV, using Tezos blockchain.