If you’ve ever been to a vehicle registration center, like the Department of Motor Vehicles in the United States, you know it’s not exactly a fun time. Long lines, frustrated people, burnt out employees, repetitive paperwork — this system has gone unchanged for decades. Perhaps rightfully so, vehicle registration is very cumbersome. From manufactures, law enforcement, and insurance providers, multiple parties involved are all trying to coordinate via paper and digital systems that are fragmented, prone to errors, data manipulation and duplication.
How Can Blockchain Help?
Vehicle registration and licensing systems are incredibly reliant on centralized databases with limited interoperability. Introducing a single, immutable and unalterable digital ledger can alleviate many of the pain points involved. All parties would be guaranteed to be working with the same data, duplicates and fraud could be eradicated, and consumers could interact with this entire system from their fingertips at home or mobile. To understand further, let’s look at what a vehicle registration life cycle could look like built entirely on blockchain:
Manufacture: Smart contracts are integrated into Vehicle Identification Number (VIN) processes and use API to mint a unique NFT token for every VIN.
Dealerships: Upon delivery manifest and receiving processes, NFTs are transferred to dealer ownership.
Insurance Agency: A digital insurance card is issued to the consumer with a provable policy via QR code checking blockchain.
Consumer: Upon car purchase, dealers transfer NFT to customer. Insurance policy is verified via QR code from consumer’s digital card. The dealer sends a transaction with customers metadata to a smart contract controlled by registration authority department. Title, registration and other documents are digitally provided to the consumer.
Registration Authority: Internal registration and system portals are synced with blockchain to receive and update driver profiles with new ownership from dealers transaction. Fees associated with registration can be paid digitally via dealer. License plates, tags and other physical paperwork is sent to address on file.
Law Enforcement: Police can issue violations straight to drivers via license plate or VIN scan, even if not present. No more stolen parking tickets or wind blowing them away. Authorities could also suspend drivers licenses for failure to renew, or lapsed insurance in real-time. Drivers could be immediately notified via registration authority app synced to blockchain API. Payments for violations can be accepted digitally.
All the above steps can always fallback to legacy processes if the customer does not wish to participate. Digital identity management can be added on top of registration authorities systems for digital drivers licenses. Renewing licenses or tags is as easy as signing a transaction with your car’s NFT and sending to the registration authority with a digital payment to update.
Below is an example overview of technical architecture for a registration authority using the GoChain blockchain:
Build a next generation vehicle registration system
Blockchain technology is being implemented world wide for use cases such as vehicle registration due to its ability to manage financial transactions, asset transfers and regulatory obligations. GoChain is leading the way with blockchain to provide the next generation of immutable and automated registry systems.
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