California’s Department of Motor Vehicles (DMV) has digitized 42 million car titles on a blockchain, according to the developer Oxhead Alpha and Ava Labs. The digitization is not on a permissionless blockchain. Instead, it is on a DMV-run blockchain, which we assume is an Avalanche subnet.
Avalanche subnets are permissioned blockchains which have separate validators from the layer 1 permissionless blockchain. The rationale is a subnet can support financial applications where all participants have to be regulated. For an institution like the DMV, it means they keep control and they can fix things should something go wrong.
However, if the DMV still has control, why do you need a blockchain? Arguably, blockchain is not essential for the current step. However, it could be powerful for future use cases, which we’ll come back to once we’ve explored the current functionality.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
