The Kingdom of Bhutan has announced it will migrate its national digital identity system from Polygon to Ethereum, with completion planned for the first quarter of 2026, making it the first country to anchor its national identity system on Ethereum.

This system is based on the concept of self-sovereign identity, granting citizens control over their personal data. It allows for the secure storage of credentials like driver's licenses and educational certificates in a digital wallet, enabling selective sharing.

Bhutan's choice of Ethereum was primarily driven by security and decentralization considerations. As the world's second-largest blockchain, Ethereum offers battle-tested infrastructure and long-term stability.

Bhutan possesses advantages for blockchain technology application, including a small population size that facilitates rapid implementation, and the utilization of its hydropower resources to mine Bitcoin and Ethereum, amassing significant cryptocurrency reserves.

Globally, countries like Brazil and Vietnam are also exploring blockchain identity systems, but Bhutan is the first to fully adopt a public blockchain for this purpose. Its approach could serve as a blueprint for other developing nations.

This transition reflects Bhutan's Gross National Happiness-oriented governance philosophy, emphasizing personal data sovereignty and trust-building, providing an innovative model for the future of digital identity.

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Summary

Author: BLOCKHEAD

Compiled by: Baihua Blockchain

This Himalayan kingdom is betting on Ethereum to build the world's first national identity system on a public blockchain – and in the process, reimagining the relationship between citizens and their data.

This week, the Himalayan Kingdom of Bhutan announced its decision to migrate its national digital identity system from Polygon to Ethereum, creating a stir in the blockchain world. Scheduled for completion by Q1 2026, this move positions the Himalayan nation as a pioneer in using public blockchain infrastructure for sovereign identity management.

The presence of Ethereum co-founder Vitalik Buterin and Ethereum Foundation Executive Director Aya Miyaguchi at the launch event signaled that its significance extends beyond a simple technical migration. As Miyaguchi stated in an X post, Bhutan becoming "the first country to anchor its National Digital Identity on Ethereum" marks a milestone moment for blockchain adoption at the national level.

Bhutan's journey to blockchain for identity management wasn't instantaneous. Its National Digital Identity system was first launched in 2023, when His Royal Highness The Gyalsey became the country's first digital citizen. The system was initially built on Hyperledger before transitioning to Polygon in August 2024, favored for its zero-knowledge protocols and promises of scalability for handling high transaction volumes.

Now, less than a year later, Bhutan is moving again, this time to Ethereum. According to Jigme Tenzing, Bhutan's Secretary of GovTech, the decision was primarily based on enhanced security: "By transitioning to Ethereum, we are further strengthening the security of our digital identity."

Ethereum, the world's second-largest blockchain by market cap and the leading platform for decentralized applications, was chosen for its battle-tested, decentralized infrastructure, reflecting Bhutan's long-term commitment to supporting critical national systems.

Understanding Self-Sovereign Identity

At the heart of Bhutan's NDI system is the concept of Self-Svereign Identity – a paradigm shift in how we think about digital credentials. Unlike traditional identity systems where governments or corporations control your data, SSI empowers individuals to own and manage their own digital identity.

In practice, this means Bhutan's nearly 800,000 residents can store digital credentials like driver's licenses, education certificates, and health records in a secure digital wallet they control. When accessing government services or proving their identity online, citizens can precisely decide what information to share and with whom, transmitting only necessary credentials instead of handing over comprehensive personal data.

SSI offers users greater autonomy over their personal information, allowing them to control who can access and use it. This provides a higher level of privacy protection, as data is no longer held in centralized silos. The blockchain serves as an immutable record for credential issuance and verification, but crucially, sensitive personal data itself is not stored on-chain. Instead, cryptographic proofs are used to verify credential authenticity without exposing the underlying information.

This architecture addresses several key vulnerabilities in traditional identity systems. Centralized databases create "honey pots" for hackers – breaching one system can compromise millions of identities. The decentralized platform enabled by SSI allows users to provide only specific details to verifiers via blockchain and verifiable credential technology, reducing the risk of identity theft while adhering to evolving privacy norms.

Why Bhutan? A Small Nation with Big Digital Ambitions

For a small South Asian nation with a population under one million, Bhutan's strong push into blockchain-based identity management might seem surprising, but several factors give it unique advantages for making this digital leap. Scale becomes an asset here – with a compact population, Bhutan can implement and iterate innovative systems faster than larger nations bogged down by legacy infrastructure and bureaucratic inertia.

Bhutan's willingness to embrace cryptocurrency and blockchain technology sets it apart from most countries. Bhutan has been actively mining Bitcoin using its abundant hydropower resources, converting its renewable energy advantage into digital assets. According to Bitbo, the country ranks sixth globally in Bitcoin reserves, holding 11,286 BTC valued at $1.28 billion; and holds 495.44 ETH according to Strategic ETH Reserve.

Bhutan's governance philosophy, guided by Gross National Happiness rather than mere GDP growth, creates space for experimenting with systems that prioritize citizen empowerment and data sovereignty over pure economic efficiency – values with which SSI systems are inherently aligned. By establishing a national-level blockchain identity system, Bhutan also positions itself as a potential hub for blockchain innovation and testing in South Asia, with its NDI system potentially serving as a blueprint for other developing nations seeking to leapfrog traditional identity infrastructure.

Bhutan's choice of Ethereum over other blockchain platforms reflects both pragmatic and philosophical considerations. As one of the most decentralized blockchain networks globally with hundreds of thousands of validators, Ethereum provides a level of security that makes it extremely difficult for any single entity to tamper with identity records. Its robust developer community support and institutional adoption offer assurance of long-term stability needed for a national identity system. Building on Ethereum also opens doors for interoperability with the vast ecosystem of decentralized applications, enabling future innovations across areas from DeFi to digital governance.

Perhaps most importantly, as Aya Miyaguchi articulated, "Bhutan's transition reflects what Ethereum was designed for – empowering individuals with sovereignty over their data, building trust without central points of failure, and enabling human-centric inclusive digital systems." While Polygon offers faster transaction speeds and lower costs, when a nation stakes its identity infrastructure on blockchain technology, the base-layer security and decentralization offered by Ethereum are ultimately paramount.

Global Context

Bhutan is not the only country exploring blockchain for national identity systems, though it may be the first to fully adopt a public blockchain like Ethereum specifically for this purpose.

* Brazil: Over 214 million Brazilian citizens are expected to use blockchain technology for digital identity, with the states of Rio de Janeiro, Goiás, and Paraná being the first to issue identification documents on-chain. The Brazilian government introduced a blockchain network to enhance data sharing security between the Federal Revenue Service and civil identification agencies, supporting the tax authority's operations. However, Brazil's approach differs from Bhutan's in scale and implementation. While Bhutan is transitioning to a fully public blockchain (Ethereum), Brazil's system appears more focused on inter-institutional data sharing and may utilize a more permissioned blockchain architecture.

* Vietnam: Vietnam launched a national-level blockchain called NDAChain for digital identity and records. The chain has 49 validator nodes overseen by public institutions and large enterprises, aiming to serve government and business needs. The associated NDAKey allows citizens to verify statements about their identity in real-time, a key part of Vietnam's fight against fraud, impersonation, and scams as its economy digitizes. Vietnam established a comprehensive national blockchain strategy in October 2024, aiming to create 20 major blockchain platforms and place the country among the top ten in Asia for blockchain research. This represents a more systematic, government-led approach compared to Bhutan's focused identity initiative.

A "Human-Centric" Digital Future

Despite challenges, Bhutan's commitment to blockchain-based identity management represents a reimagining of the relationship between citizen and state in the digital age.

As more aspects of our lives – from healthcare to finance to education – move online, the question of who controls our digital identity becomes increasingly critical. Bhutan's answer prioritizes individual sovereignty, security through decentralization, and transparency via an open blockchain infrastructure.

Whether other nations will follow Bhutan's lead remains to be seen. But as the world watches this small Himalayan country implement one of the most advanced national identity systems ever conceived, one thing is clear: the future of digital identity is being written on the blockchain, one citizen at a time.

For Bhutan's 800,000 residents, that future begins on Ethereum in early 2026.

The Kingdom of Bhutan has announced it will migrate its national digital identity system from Polygon to Ethereum, with completion planned for the first quarter of 2026, making it the first country to anchor its national identity system on Ethereum.

This system is based on the concept of self-sovereign identity, granting citizens control over their personal data. It allows for the secure storage of credentials like driver's licenses and educational certificates in a digital wallet, enabling selective sharing.

Bhutan's choice of Ethereum was primarily driven by security and decentralization considerations. As the world's second-largest blockchain, Ethereum offers battle-tested infrastructure and long-term stability.

Bhutan possesses advantages for blockchain technology application, including a small population size that facilitates rapid implementation, and the utilization of its hydropower resources to mine Bitcoin and Ethereum, amassing significant cryptocurrency reserves.

Globally, countries like Brazil and Vietnam are also exploring blockchain identity systems, but Bhutan is the first to fully adopt a public blockchain for this purpose. Its approach could serve as a blueprint for other developing nations.

This transition reflects Bhutan's Gross National Happiness-oriented governance philosophy, emphasizing personal data sovereignty and trust-building, providing an innovative model for the future of digital identity.

---

Summary

Author: BLOCKHEAD

Compiled by: Baihua Blockchain

This Himalayan kingdom is betting on Ethereum to build the world's first national identity system on a public blockchain – and in the process, reimagining the relationship between citizens and their data.

This week, the Himalayan Kingdom of Bhutan announced its decision to migrate its national digital identity system from Polygon to Ethereum, creating a stir in the blockchain world. Scheduled for completion by Q1 2026, this move positions the Himalayan nation as a pioneer in using public blockchain infrastructure for sovereign identity management.

The presence of Ethereum co-founder Vitalik Buterin and Ethereum Foundation Executive Director Aya Miyaguchi at the launch event signaled that its significance extends beyond a simple technical migration. As Miyaguchi stated in an X post, Bhutan becoming "the first country to anchor its National Digital Identity on Ethereum" marks a milestone moment for blockchain adoption at the national level.

Bhutan's journey to blockchain for identity management wasn't instantaneous. Its National Digital Identity system was first launched in 2023, when His Royal Highness The Gyalsey became the country's first digital citizen. The system was initially built on Hyperledger before transitioning to Polygon in August 2024, favored for its zero-knowledge protocols and promises of scalability for handling high transaction volumes.

Now, less than a year later, Bhutan is moving again, this time to Ethereum. According to Jigme Tenzing, Bhutan's Secretary of GovTech, the decision was primarily based on enhanced security: "By transitioning to Ethereum, we are further strengthening the security of our digital identity."

Ethereum, the world's second-largest blockchain by market cap and the leading platform for decentralized applications, was chosen for its battle-tested, decentralized infrastructure, reflecting Bhutan's long-term commitment to supporting critical national systems.

Understanding Self-Sovereign Identity

At the heart of Bhutan's NDI system is the concept of Self-Svereign Identity – a paradigm shift in how we think about digital credentials. Unlike traditional identity systems where governments or corporations control your data, SSI empowers individuals to own and manage their own digital identity.

In practice, this means Bhutan's nearly 800,000 residents can store digital credentials like driver's licenses, education certificates, and health records in a secure digital wallet they control. When accessing government services or proving their identity online, citizens can precisely decide what information to share and with whom, transmitting only necessary credentials instead of handing over comprehensive personal data.

SSI offers users greater autonomy over their personal information, allowing them to control who can access and use it. This provides a higher level of privacy protection, as data is no longer held in centralized silos. The blockchain serves as an immutable record for credential issuance and verification, but crucially, sensitive personal data itself is not stored on-chain. Instead, cryptographic proofs are used to verify credential authenticity without exposing the underlying information.

This architecture addresses several key vulnerabilities in traditional identity systems. Centralized databases create "honey pots" for hackers – breaching one system can compromise millions of identities. The decentralized platform enabled by SSI allows users to provide only specific details to verifiers via blockchain and verifiable credential technology, reducing the risk of identity theft while adhering to evolving privacy norms.

Why Bhutan? A Small Nation with Big Digital Ambitions

For a small South Asian nation with a population under one million, Bhutan's strong push into blockchain-based identity management might seem surprising, but several factors give it unique advantages for making this digital leap. Scale becomes an asset here – with a compact population, Bhutan can implement and iterate innovative systems faster than larger nations bogged down by legacy infrastructure and bureaucratic inertia.

Bhutan's willingness to embrace cryptocurrency and blockchain technology sets it apart from most countries. Bhutan has been actively mining Bitcoin using its abundant hydropower resources, converting its renewable energy advantage into digital assets. According to Bitbo, the country ranks sixth globally in Bitcoin reserves, holding 11,286 BTC valued at $1.28 billion; and holds 495.44 ETH according to Strategic ETH Reserve.

Bhutan's governance philosophy, guided by Gross National Happiness rather than mere GDP growth, creates space for experimenting with systems that prioritize citizen empowerment and data sovereignty over pure economic efficiency – values with which SSI systems are inherently aligned. By establishing a national-level blockchain identity system, Bhutan also positions itself as a potential hub for blockchain innovation and testing in South Asia, with its NDI system potentially serving as a blueprint for other developing nations seeking to leapfrog traditional identity infrastructure.

Bhutan's choice of Ethereum over other blockchain platforms reflects both pragmatic and philosophical considerations. As one of the most decentralized blockchain networks globally with hundreds of thousands of validators, Ethereum provides a level of security that makes it extremely difficult for any single entity to tamper with identity records. Its robust developer community support and institutional adoption offer assurance of long-term stability needed for a national identity system. Building on Ethereum also opens doors for interoperability with the vast ecosystem of decentralized applications, enabling future innovations across areas from DeFi to digital governance.

Perhaps most importantly, as Aya Miyaguchi articulated, "Bhutan's transition reflects what Ethereum was designed for – empowering individuals with sovereignty over their data, building trust without central points of failure, and enabling human-centric inclusive digital systems." While Polygon offers faster transaction speeds and lower costs, when a nation stakes its identity infrastructure on blockchain technology, the base-layer security and decentralization offered by Ethereum are ultimately paramount.

Global Context

Bhutan is not the only country exploring blockchain for national identity systems, though it may be the first to fully adopt a public blockchain like Ethereum specifically for this purpose.

* Brazil: Over 214 million Brazilian citizens are expected to use blockchain technology for digital identity, with the states of Rio de Janeiro, Goiás, and Paraná being the first to issue identification documents on-chain. The Brazilian government introduced a blockchain network to enhance data sharing security between the Federal Revenue Service and civil identification agencies, supporting the tax authority's operations. However, Brazil's approach differs from Bhutan's in scale and implementation. While Bhutan is transitioning to a fully public blockchain (Ethereum), Brazil's system appears more focused on inter-institutional data sharing and may utilize a more permissioned blockchain architecture.

* Vietnam: Vietnam launched a national-level blockchain called NDAChain for digital identity and records. The chain has 49 validator nodes overseen by public institutions and large enterprises, aiming to serve government and business needs. The associated NDAKey allows citizens to verify statements about their identity in real-time, a key part of Vietnam's fight against fraud, impersonation, and scams as its economy digitizes. Vietnam established a comprehensive national blockchain strategy in October 2024, aiming to create 20 major blockchain platforms and place the country among the top ten in Asia for blockchain research. This represents a more systematic, government-led approach compared to Bhutan's focused identity initiative.

A "Human-Centric" Digital Future

Despite challenges, Bhutan's commitment to blockchain-based identity management represents a reimagining of the relationship between citizen and state in the digital age.

As more aspects of our lives – from healthcare to finance to education – move online, the question of who controls our digital identity becomes increasingly critical. Bhutan's answer prioritizes individual sovereignty, security through decentralization, and transparency via an open blockchain infrastructure.

Whether other nations will follow Bhutan's lead remains to be seen. But as the world watches this small Himalayan country implement one of the most advanced national identity systems ever conceived, one thing is clear: the future of digital identity is being written on the blockchain, one citizen at a time.

For Bhutan's 800,000 residents, that future begins on Ethereum in early 2026.