California DMV’s adoption of Avalanche for car title digitization could spark a massive AVAX price rally, surpassing even its 2021 gains, says a crypto influencer.
In a recent video, this enthusiast detailed that the California Department of Motor Vehicles (DMV) has already digitized 42 million car titles on Avalanche. Going further, the California DMV is also launching a dedicated chain on Avalanche to streamline the vehicle title transfer process for its over 39 million residents.
This kind of real-world implementation could propel Avalanche to the top of the list for institutional and government adoption of blockchain technology. Avalanche offers a flexible blockchain ecosystem that empowers developers to build what they want, the way they want.
Breaking down the possibilities on Avalanche, the crypto influencer explained that the blockchain protocol does not rely on just one chain. It uses three specialized interconnected chains: the Exchange Chain (X-chain), the Contract Chain (C-chain), and the Platform Chain (P-chain).
He further elaborated that these chains form Avalanche’s primary network, where each subnet operates independently with rules tailored to their specific applications and developers. Even though they are independent, all the subnets connect to the Avalanche mainnet. This subnet structure allows the blockchain to scale efficiently, reducing congestion and fees.
Additionally, validators must stake AVAX to run nodes on Avalanche, but each subnet has its own staking requirements and rules. More technically, the Avalanche consensus mechanism uses a Directed Acyclic Graph (DAG), a data structure made up of nodes connected by directed edges, where each edge points from one node to another in a technically efficient way.
Many in the Avalanche community believe the California DMV implementation could lead to wider adoption of the blockchain protocol, driving up AVAX’s price. They anticipate a significant price rally, even surpassing the impressive run it had during the last bull run in 2021.
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