Bhutan has began shifting its nationwide digital identification system onto the Ethereum blockchain, a step its authorities and companions describe as a primary for a rustic of its dimension.
Based on authorities and blockchain sources, the transfer goals to anchor identification attestations on a public chain whereas conserving non-public private information off the ledger.
What The Shift Entails
Based mostly on reviews, the Nationwide Digital Identification (NDI) platform will serve roughly 800,000 folks and the total migration of credentials is anticipated to be accomplished by Q1 2026.
Officers say the change follows earlier platform updates and is supposed to strengthen how identification claims are verified throughout companies.
The federal government beforehand moved its self-sovereign identification system from Hyperledger Indy to Polygon in 2024, a step taken to enhance scalability and efficiency earlier than the newest integration with Ethereum. That earlier migration is a part of the technical background now guiding the present swap.
1/ Immediately, Bhutan celebrates a historic milestone, turning into the primary nation to anchor its nationwide digital identification system on Ethereum. 🇧🇹@VitalikButerin and I had been honored to affix the launch ceremony on behalf of the Ethereum neighborhood, graced by His Royal Highness. pic.twitter.com/KA4tOYbsJ4
— Aya Miyaguchi (@AyaMiyagotchi) October 13, 2025
Ceremony And Leaders
Experiences have disclosed that the launch occasion drew high-profile figures from the Ethereum neighborhood and Bhutan’s management.
Ethereum co-founders and basis representatives had been current on the announcement, and native officers described the day as a landmark within the nation’s plans for digital companies.
Technically, the federal government and its tech companions say the system will keep away from inserting non-public identification information immediately on chain.
As a substitute, cryptographic proofs or hashes shall be used to verify identification claims whereas private data stay saved off chain beneath authorities management.
That method is meant to steadiness verification with privateness protections, in keeping with public statements from venture leads.
What This Means For Residents
For a lot of customers, the change must be invisible daily. Verifiers — banks, companies, and repair suppliers — will be capable of examine credentials in opposition to the general public proof with out receiving uncooked private information.
That is how officers describe the mannequin in plain phrases: keys and proofs on a public ledger, non-public information saved elsewhere beneath guidelines and authorized guardrails.
Nonetheless, sensible questions stay. How will the federal government deal with prices tied to public chain transactions? Which apps or wallets will residents use? How will the system work in distant areas with restricted web?
These are the types of operational points that the NDI group has mentioned it’ll deal with as migration continues towards the Q1 2026 goal.
World Context And Warning
Specialists say Bhutan’s transfer is notable as a result of nationwide identification programs are often run on closed networks or permissioned ledgers.
Anchoring proofs on a extensively used public chain like Ethereum is rare at scale. Observers reward the transparency potential, however in addition they warn about long-term prices, governance, and the necessity for clear authorized protections for residents’ information.
Featured picture from Unsplash, chart from TradingView
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