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Because "blockchain" is more than crypto. It's about an immutable, verifiable transaction history.

To make sure the DMV does not alter their own records? They are the ultimate authority on the topic.

Insider threat?

you only need that if you have multiple adversarial parties that all want to commit to a shared immutable history.

This is a use case with a single source of truth (the DMV). So again, why do we need a blockchain?