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The Future of Car Titles: How Blockchain Technology Is Changing the Game

Can you obtain an electronic or digital copy of your car title? It may seem reasonable to download or print a car title on your phone, as other documents such as boarding passes and passports are now going mobile. However, vehicle titling is conducted at the state level, meaning no single national car title exists. Nevertheless, progress has been made in California, where the DMV is starting to digitize car titles. This means you would no longer need a paper title and would no longer have to deal with the DMV bureaucracy or fill out forms. Everything can be done electronically on your phone, making vehicle titling and proving ownership much more straightforward, even if you have a lien on the vehicle. Evidence of ownership can be documented with a QR code or electronic signature on your phone.

However, the question now is how to migrate this system to other states. California is leading the transition, and a few other states, including Virginia, New Hampshire, and Vermont, have signed contracts with companies to switch to electronic car titles. But how does an electronic car title work, exactly?

Car titles and blockchain technology

The process of digitizing vehicle titles uses blockchain technology, the same technology that backs up cryptocurrencies. A blockchain signature code will provide value to vehicle titles, identifying the vehicle, VIN number, owner, and any lien holders. All the relevant vehicle information, including its year, make, model, and history, will be stored securely in the cloud using blockchain technology. This allows for seamless transfer of ownership records, which can be done electronically, without the need for notarized and signed paper documents.

When you buy or sell a car, you can connect with the other person electronically, and the transaction can be completed on your phone with funds transfer, resulting in an instant transfer of ownership. Even dealerships can use this system to transfer ownership instantly to customers who buy cars from them. The process eliminates the need to wait for 30, 45, or even 60 days to receive the title and plates for a purchased vehicle.

California plans to introduce digital wallets that hold and transfer token car titles, with the DMV acting as a middleman to oversee the operations. This system promises to revolutionize the way vehicle ownership is documented and transferred, making the process more efficient, secure, and convenient for all parties involved.

This is a game-changer! It promises to simplify the process of dealing with vehicle titles and ownership. One of the problems with vehicle titles is that they are not something that you use or update every year, unlike your registration and license plates. You renew these items every year, and you keep your driver’s license in your wallet because you need to show it regularly. However, your car title is a different story. You receive it, and then you throw it in a drawer where it is forgotten about for years. When you finally need it to sell your car, you might struggle to find it. This can be frustrating because you may need to file for a lost title, fill out forms, and show your ID. If you have moved, this process can be even more complicated because your address may be wrong.

Digitizing vehicle titles will prevent title fraud, where someone hides prior salvage or lien information from future buyers. It will also prevent titles from being washed from one state to another and lock down the record so any future owner knows about liens and salvage. If a vehicle is reported stolen, it can also be reported on the blockchain. This more straightforward way of obtaining a title can help you avoid the bureaucracy of dealing with the DMV and other agencies that make getting titles difficult.

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