The California Department of Motor Vehicles (DMV) is testing out the digitization of car titles and title transfers by means of a personal Tezos blockchain.

The relocation is part of a collaboration in between the California DMV, Tezos and blockchain software application firm Oxhead Alpha, with the latter announcing t effective proof-of-concept on Jan. 25.

The California DMV has tapped Oxhead Alpha to build on a private Tezos testnet that it has actually called a “shadow ledger.” It is basically designed to end up being a blockchain-based replication of the firm’s current database.

The California DMV’s chief digital officer Ajay Gupta told Fortune on Jan. 26 that the firm is wanting to have the shadow journal straightened out within the next three months.

Following on from that, it is seeking to present applications such as digital wallets to hold and transfer NFT automobile titles, with the DMV acting as an intermediary to supervise such operations.

“The DMV’s perception of lagging behind must absolutely change,” Gupta told Forbes.Oxhead Alpha’s

president Andrew Smith detailed that the California DMV’s blockchain initiative will serve a vast array of usage cases for the agency, particularly concerning the modernization of its existing paper-based systems.

Smith highlighted examples such as transaction fraud, in which car sellers conceal key information about the car’s condition to offload a loser or “lemon” onto unwary buyers.

While malfunctioning vehicles have a special classification on their titles in California, Smith noted that sellers can move the car over to another state and hide the malfunctioning designations with relative ease.

With making use of blockchain-based record keeping, nevertheless, and with other DMVs possibly adopting the tech likewise, it would be a lot easier to digital track the real history of cars, Smith recommended.

“As far as the benefit for having a relentless digital title, this is a very obvious use case,” he stated.

Talking about why Tezos was a good fit for the DMV, Smith outlined in the firm’s Jan. 25 announcement that the blockchain “fixes a few of the actually difficult problems in blockchain in a classy method.”

“The mix of responsible consensus, on-chain governance, and institutional grade security makes Tezos a fantastic platform for providing production-ready options,” he stated.

Related: Venture capital financial investments into blockchain continue to free-fall: Report

The move from the California DMV is likely to be followed by others in the state moving on. In May 2022, California Governor Gavin Newsom signed an executive order to direct and check out chances for blockchain tech integrations with state government agencies.

“California is a worldwide center of innovation, and we’re establishing the state for success with this emerging innovation– spurring responsible innovation, securing customers and leveraging this innovation for the public great,” stated the guv.