October 18, 2025 — Underscoring the growing convergence between blockchain and national governance, the Kingdom of Bhutan has announced that its National Digital Identity (NDI) system will migrate from Polygon to Ethereum. This transition marks not just a technical shift, but a deeper realignment toward greater transparency, interoperability, and long-term digital trust, potentially setting a new benchmark for blockchain-based sovereign identity systems around the world.
From Hyperledger to Polygon, Now to Ethereum
Bhutan’s journey toward blockchain-powered identity infrastructure has been an evolutionary one:
- The project initially began using Hyperledger Indy for early development.
- In August 2024, Bhutan launched its National Digital Identity (NDI) pilot on Polygon to explore decentralized credential issuance and verification.
- Now, the government has confirmed a full-scale migration to Ethereum mainnet, expected to be completed by the first quarter of 2026.
The announcement was made during a formal event attended by Ethereum Foundation Chair Aya Miyaguchi and Ethereum founder Vitalik Buterin, highlighting the importance of this migration to the broader Web3 ecosystem.
hy Move from Polygon to Ethereum?
Bhutan’s decision reflects a mix of technical, governance, and trust-based considerations. Here’s why the shift makes sense:
1. Stronger Security and Decentralization
While Polygon offers scalability and lower fees, it operates as a Layer-2 or sidechain solution to Ethereum, meaning it trades off some decentralization for speed.
By moving to Ethereum mainnet, Bhutan’s digital identity system will benefit from the world’s largest validator network, unparalleled uptime, and the strongest cryptographic security available on a public blockchain.
As Jigme Tenzing, Director of Bhutan’s GovTech Agency, noted:
“Migrating to Ethereum ensures the highest level of resilience and trust for our national digital identity infrastructure.”
2. Improved Interoperability with the Global Web3 Ecosystem
Bhutan’s identity system follows a Self-Sovereign Identity (SSI) model, empowering citizens to control their own credentials, such as education certificates, medical records, or business licenses — and selectively share proof of authenticity without revealing personal data.
Migrating to Ethereum enhances interoperability with a broader range of DeFi, DAO, and decentralized application (dApp) ecosystems, allowing Bhutan’s NDI to integrate with more global partners.
Ethereum also leads in zero-knowledge proof (ZKP) technologies and privacy-preserving frameworks, which are critical for balancing transparency and confidentiality in identity systems.
3. Building a Trustworthy National Infrastructure
By anchoring its identity system on a public blockchain, Bhutan is taking a bold stance: transferring the foundation of national trust onto a decentralized network.
This move signals confidence not only in Ethereum’s technical robustness but also in its community-driven governance and public accountability, qualities that align with Bhutan’s commitment to transparency and long-term sustainability.
What It Means for Bhutan’s Citizens
For Bhutan’s population of roughly 800,000, the migration promises tangible benefits:
- ✅ Enhanced Data Sovereignty — Citizens gain greater control over how, when, and where their personal data is shared.
- ✅ Streamlined Public Services — Government, banking, education, and healthcare systems can securely verify credentials across institutions without redundant checks.
- ✅ Increased Reliability — Migrating to Ethereum reduces risks associated with network congestion or dependency on a single scaling solution.
However, it also introduces new challenges: ensuring wallet compatibility, educating users about private key management, and securely transitioning existing credentials to the new system.
A Global Milestone for Blockchain Governance
Bhutan is now among the first countries in the world to deploy a full-scale sovereign digital identity system on Ethereum mainnet, a move that could inspire similar initiatives in other nations. Countries such as Brazil and Vietnam have explored blockchain-based ID systems, but most use private or permissioned chains. Bhutan’s open-chain approach makes it a trailblazer for public-sector blockchain adoption.
If successful, this initiative could redefine how governments handle identity, verification, and digital citizenship in the Web3 era.
The Challenges Ahead
Despite its groundbreaking potential, Bhutan’s migration to Ethereum faces several hurdles:
- 🔒 Privacy and Legal Compliance — Balancing on-chain transparency with national privacy laws will be complex.
- ⚖️ Governance and Dispute Resolution — Immutable blockchain records complicate error correction and human oversight.
- 🧩 Scalability and Performance — National-level identity systems require fast verification and high availability.
- 📚 Public Education and Adoption — Citizens must understand how to manage digital credentials and wallets securely.
Bhutan’s success will depend on how it navigates these challenges — blending technical innovation with clear governance and public trust.
Implications for the Crypto and Blockchain Industry
Bhutan’s move carries deep symbolic and strategic meaning for the global blockchain ecosystem:
- Public blockchains are evolving into sovereign infrastructure.
- Ethereum is no longer just a financial network as it’s becoming a civic infrastructure layer.
- Interoperability, privacy, and governance are now core considerations in Web3 design.
- Blockchain identity is entering real-world national deployment, not just pilot phases.
This migration marks a turning point in blockchain’s narrative, from speculative technology to public utility.
Bhutan’s decision to migrate its sovereign identity system from Polygon to Ethereum represents a historic milestone in blockchain adoption. It reaffirms the country’s belief in self-sovereign identity, decentralized trust, and open governance, principles that mirror Ethereum’s founding ethos.
If successfully implemented, Bhutan’s model could serve as a global reference for how nations leverage blockchain to empower citizens, enhance transparency, and safeguard digital rights.
Your Trades. Our Priority. Hotcoin.
Hotcoin Official Site: https://www.hotcoin.com
Hotcoin Twitter: https://x.com/HotcoinGlobal
Hotcoin Telegram: https://t.me/HotcoinEX
Hotcoin Chinese Twitter: https://x.com/hotcoinzh
Hotcoin Chinese Community: https://t.me/hotcoinglobalcn
Hotcoin YouTube: https://www.youtube.com/@hotcoinglobal