The world's first case! Bhutan stores 800,000 citizenships on Ethereum, Vitalik witnesses history

The Kingdom of Bhutan has officially migrated its national digital identity system from Polygon to Ethereum, with nearly 800,000 citizens' national identities being verified on a public Blockchain, setting a global precedent. Ethereum co-founder Vitalik Buterin and the Crown Prince attended the launch ceremony, and this nation, holding 11,286 Bitcoins (worth $1.28 billion), is redefining digital sovereignty with the Bhutan Ethereum storage system.

Historic Milestone of Bhutan Ethereum Storage

The Kingdom of Bhutan is migrating its national digital identity system from Polygon to Ethereum, with the entire process expected to be completed by the first quarter of 2026. This move allows nearly 800,000 citizens to verify their credentials on a public blockchain, making it a pioneering initiative among similar efforts.

· Comprehensive Endorsement by the Ethereum Foundation

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According to Aya Miyaguchi, chair of the Ethereum Foundation, the integration of the system on Ethereum "is now fully operational." Miyaguchi stated: "This milestone not only marks an achievement for a nation but also represents a step forward for the world towards a more open and secure long-term digital future."

She wrote on social media: "Today, Bhutan celebrates a historic milestone as the first country to anchor its national digital identity system on Ethereum. I am very honored to represent the Ethereum community at the launch ceremony, attended by His Highness in person."

· Vitalik Buterin witnessed in person

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Ethereum co-founder Vitalik Buterin and Aya Miyaguchi attended the launch ceremony on Monday with Bhutan's Prime Minister Tshering Tobgay and the Crown Prince. This event coincides with the tenth anniversary of Ethereum, emphasizing a shared commitment to open public data.

"When I first visited Bhutan in May 2024, I felt a strong resonance between Bhutan and Ethereum: both sides believe that the vision for the future must be built on strong fundamental values," wrote Miyakuchi. "Seeing a country committed to empowering its citizens with sovereign identity is deeply inspiring."

From Polygon to Ethereum: Strategic Considerations for Technical Migration

Bhutan's national digital identity system did not initially choose Ethereum, but went through a process of technological evolution.

· The Origin of National Digital Identity

It is reported that His Majesty the King of Bhutan launched the National Digital Identity (NDI) in 2023 and became the first digital citizen. This move drew global attention at the time—a small Himalayan country known for its Gross National Happiness (GNH) chose the most cutting-edge blockchain technology as its national infrastructure.

· Technical Practice in the Polygon Stage

In August 2024, this South Asian country completed the transition to a national digital sovereignty identity. Bhutan initially adopted the Polygon Blockchain and its zero-knowledge protocol, aiming to enhance the system's scalability and ensure it can handle a large number of transactions without compromising performance.

Technical Advantages of Polygon Stage:

Low transaction costs: suitable for initial testing and deployment.

High efficiency: capable of handling a large number of verification requests

Zero-knowledge proof: Verifying identity while protecting citizens' privacy

Three Major Reasons for Migrating to Ethereum

So, why did Bhutan ultimately choose the Bhutan Ethereum storage system as the final solution?

1. Higher degree of decentralization

Ethereum has a globally distributed network of validation nodes. By utilizing blockchain technology, Bhutan's National Digital Infrastructure (NDI) will benefit from greater decentralization, transparency, and resilience.

2. Global Consensus and Trust Foundation

As the world's second largest blockchain, Ethereum has a broader developer community and a more mature ecosystem, providing assurance for long-term stability.

3. Standardization of Verifiable Credentials

Through this integration, Bhutan's national digital identity system can now issue verifiable credentials (VC) and implement digital signatures directly on Ethereum, aligning more closely with international standards.

The Prime Minister of Bhutan, Lyonchen Tshering Tobgay, stated: "By leveraging the global decentralized network of Ethereum, we are enhancing the security, transparency, and resilience of Bhutan's digital infrastructure."

The Three Revolutionary Significances of Digital Sovereign Identity

The Bhutan Ethereum storage system is not only a technological innovation but also represents a profound transformation in the country's governance model.

1. The True Realization of Citizen Data Sovereignty

"Bhutan's transformation embodies the original intent of Ethereum—empowering personal data sovereignty, building trust, avoiding centralized failures, and creating a human-centric inclusive digital system," Aya Miyaguchi added.

Core Connotation of Data Sovereignty:

Self-control: Citizens hold their own identity credentials, rather than having them centrally managed by the government.

Portability: The certificates can be used seamlessly across different services.

Censorship Resistance: Public blockchains ensure that identity records cannot be unilaterally tampered with or deleted.

2. Breakthrough in Global Verifiability

Nearly 800,000 Bhutanese citizens' identity credentials can now be verified anywhere in the world without relying on the Bhutanese government's central server. This has revolutionary significance for cross-border travel, international trade, remote work, and other scenarios.

Application Scenario Imagination:

Cross-border financial services: Bhutanese citizens can open overseas bank accounts more conveniently.

International education certification: Academic diplomas can be directly verified on-chain.

Global Employment Market: Employers Can Instantaneously Verify Job Seekers' Identities and Qualifications

3. Demonstration Effect of National-Level Blockchain Adoption

The success of Bhutan's Ethereum storage system will have a profound impact on other countries. As the first nation in the world to fully anchor its national identity system on a public blockchain, Bhutan provides a replicable template for small economies.

Potential Followers:

Developing countries: lacking traditional IT infrastructure, can directly leap to the Blockchain era.

Island economies: such as the Maldives, Seychelles, etc., face similar digitalization challenges.

Digital native countries: Countries like Estonia that have implemented e-citizenship may upgrade to Blockchain.

Bhutan's Crypto-Friendly National Policy: From Bitcoin to Ethereum

The Bhutan Ethereum storage system is not an isolated technological decision, but rather part of the country's comprehensive strategy to embrace crypto assets.

· The Amazing Scale of Bitcoin National Reserves

The Bhutanese government is also engaging in Bitcoin staking, becoming the fifth largest country holding Bitcoin. According to statistics, the country currently holds 11,286 Bitcoins, worth $1.28 billion.

Global Government Bitcoin Holdings Ranking (Top Five):

1, United States

2, China

3. United Kingdom

4. Ukraine

5, Bhutan (11,286 BTC)

This figure is astonishing for a country with a population of only 800,000 and a GDP of about 3 billion USD. The Bitcoin reserves account for more than 40% of the country's GDP, demonstrating its strategic bet on crypto assets.

The Logic of the Dual-Track Encryption Strategy

Bitcoin Layer: Value Storage

As a national reserve asset, it hedges against the depreciation risk of fiat currency and provides financial sovereignty for small countries.

Ethereum Layer: Infrastructure

Utilizing smart contracts and verifiable credential technology to construct a national-level digital identity system.

This dual-track strategy demonstrates the Bhutanese government's profound understanding of blockchain technology—Bitcoin and Ethereum each have their strengths, serving different national strategic goals.

Unique Combination of Happiness Index and Technological Outlook

Bhutan is known for replacing GDP with "Gross National Happiness" (GNH) as a development indicator. This embrace of blockchain technology reflects the country's unique wisdom in actively embracing technological innovation while maintaining traditional values.

GNH and the Value Resonance of Blockchain:

Decentralization = Community Empowerment: Aligned with Bhutan's values that emphasize community harmony.

Transparency = Governance Integrity: The immutability of blockchain strengthens government credibility.

Data sovereignty = personal dignity: allowing citizens to truly own their digital identity