Bhutan has adopted the Ethereum blockchain to power its National Digital Identity (NDI) system, becoming the first country to anchor a population-scale digital ID system on a public blockchain network. This move enables citizens to cryptographically verify attributes such as age, residency, or citizenship securely and privately without relying on centralized databases. The integration with Ethereum is complete, with the full migration of all citizen credentials expected by early 2026.

How the Ethereum-Based Citizen ID System Works

Bhutan's NDI platform creates verifiable credentials and decentralized identifiers linked to Ethereum's validator network. Citizens control their digital identities through a mobile wallet protected by biometric authentication, allowing them to prove specific personal attributes without exposing the entire identity or sensitive data, thanks to cryptographic techniques such as zero-knowledge proofs. The system maintains data integrity on-chain but keeps sensitive information off-chain, ensuring privacy while enabling transparent, tamper-evident verification.

What the Blockchain Provides and Why Ethereum Was Chosen

• Security and Privacy: Ethereum's globally distributed network removes single points of failure, reducing the risks of data breaches common in centralized systems. The platform provides strong cryptographic evidence for identity claims, enhancing trust and transparency.

• Self-Sovereign Identity (SSI): Users have full control over their identities and credentials, minimizing the risk of misuse by authorities and empowering citizens.

• Transparency and Immutability: Blockchain's inherent immutability ensures that identity proofs cannot be tampered with, adding an audit layer for government entities.

• Open Public Network: Moving from permissioned blockchains like Polygon and Hyperledger Indy, Ethereum provides a widely supported, open-source infrastructure that aligns with Bhutan’s vision of a trust-based digital society.

• Innovation Leadership: Bhutan's adoption positions it as a pioneer in blockchain governance and digital identity innovation, setting a precedent for secure, privacy-preserving national ID systems worldwide.

In summary, Bhutan chose Ethereum because it offers a decentralized, secure, transparent, and privacy-respecting platform that empowers citizens with self-sovereign identity management, reducing reliance on centralized authorities and enhancing resilience against fraud and data breaches.