This is effectively PKI for personhood. The State DMV acts as the Certificate Authority (CA), signing a "leaf certificate" that is bound to the device's hardware Secure Element.

It’s less like a TLS handshake and more like OpenID for Verifiable Presentations (OID4VP). The "non-free" hardware requirement serves as Remote Attestation—it allows a verifier to cryptographically prove that the identity hasn't been cloned or spoofed by a script. The verification happens offline or via a standard web flow using the DMV’s public key to validate the data signature, ensuring the credential is authentic without requiring a phone-home to the issuer.