Two Cheers For On-Chain DMV Records

California's DMV has partnered with Avalanche blockchain to place 42 million car titles on-chain—an impressive step toward modernizing state records.

We commend this groundbreaking effort, promising efficiency for California’s drivers and taxpayers while marking a significant milestone for blockchain technology.

As reported by Yahoo Finance, 'California residents will be able to access their digital car titles starting early next year as the DMV builds out the app and infrastructure for consumer access.’

But… Why Not a Third Cheer?

While putting those titles on-chain is commendable, it’s crucial to address the missing elements of privacy and security.

Privacy

Blockchain explorers allow anyone to view and analyze data, including wallet balances, transactions, and historical records.

Like nearly all blockchain projects, you can easily see every transaction on the Avalanche blockchain with  online explorers such as Snowtrace Multi-Chain explorer, Avascan, or C-Chain.

Why might this be a problem?

We live in a world where machine learning and artificial intelligence are a few clicks away, letting anyone do whatever they like with the data that’s available on the Internet. With DMV information on a chain that can be explored by everyone, that data can be accessed and potentially exploited by anyone. 

Patterns and Associations:

• Transaction analysis can reveal links between wallet addresses and known entities. A wallet that frequently interacts with an address known to belong to a particular entity (like an exchange or a merchant) could provide clues about the owner.
• Blockchain explorers often provide visualization tools that make it easier to identify patterns of interactions.
  
  

Public Information and Metadata:

• Some addresses might be publicly known if they’re associated with public figures, organizations, or services. One example - donation addresses for charities or public addresses for exchanges are often known and can be cross-referenced.
• Further, metadata from transactions, such as messages or tags, can sometimes be used to deduce the identity of the address owner.
  
  

KYC/AML Regulations:

• Exchanges and some services are required to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Addresses associated with these services can sometimes be traced back to verified identities, though this information is typically only accessible to the exchange and not the public. And if these centralized exchanges are part of the process, we are back to relying on the security of a centralized database. We see how badly that’s working out on a daily basis.

How Could DMV Records Be Exploited?

Unfortunately, the DMV records data could be exploited in several ways.

Stalking and Harassment:

Access to personal details like names, addresses, and vehicle information could be leveraged by stalkers or harassers to track individuals. Perhaps most at risk are survivors of abuse, including domestic violence, sexual assault, and stalking.

Identity Theft and Fraud:

DMV data can include sensitive personal information that can be used to commit identity theft. The data could be used by bad actors to open fraudulent accounts, apply for loans, or engage in other forms of financial fraud.

Targeted Scams and Phishing:

Scammers can craft highly targeted phishing attacks once they have access to detailed personal information. By impersonating legitimate entities they can deceive you into providing additional personal information or making payments.

Private Investigation and Surveillance:

Private investigators, companies, and other entities can purchase DMV data to conduct surveillance on you without their consent. This unauthorized monitoring and invasion of privacy is the very thing that Web3 is trying to relegate to the past.

Commercial Exploitation:

Companies can use DMV data for unsolicited marketing and advertising, targeting individuals based on their vehicle ownership and other personal details. Such commercial exploitation can be intrusive and unwanted.

IronWeave: Security and Privacy in Web3

IronWeave's unique shared-block architecture delivers unmatched privacy and security.

Each block on an IronWeave chain is encrypted (opaque) and accessible/viewable only by its participants. As a result, any action taken by someone in IronWeave is invisible to those not participating in that particular interaction/block.

Only the owner or permissioned participant of any block can see its data. Since you're a participant in every block on any chain you own, you can see all that data. The same goes for chains owned by anyone. I can't see your chains or your blocks, except for those blocks where I'm a participant. 

Security and privacy are a direct result of block level encryption and not being visible using a blockchain explorer.

We applaud California and Avalanche for this milestone achievement, but greater privacy and data security must be prioritized moving forward.

Discover how IronWeave ensures privacy and security in the digital age.