Bhutan’s National Digital Identity (NDI) system has begun its migration from Polygon to Ethereum, marking one of the boldest government blockchain projects to date. According to Bhutan’s GovTech agency, around 800,000 citizens will have their credentials anchored on Ethereum by early 2026. The government calls it a milestone toward greater security, transparency, and digital sovereignty for the Himalayan kingdom.
From Pilot to Production
Bhutan’s path to a blockchain-based identity began with experiments on Hyperledger Indy, a permissioned network used for testing. Later, in 2024, the NDI moved to Polygon PoS to scale identity issuance at a lower cost. However, GovTech Bhutan explains that while Polygon was ideal for prototyping, it is limited for long-term deployment. Now, with a national rollout ahead, the new Ethereum integration positions the system for global interoperability and lasting resilience. These are critical features for a sovereign digital service aimed to last for decades.
Why Ethereum — Security and Neutrality
The main driver behind the migration is trust. Bhutan’s GovTech team views Ethereum as a public blockchain identity platform that offers stronger decentralization and neutrality than a sidechain managed by private entities. Moreover, unlike Polygon PoS, which depends on a smaller validator network, Ethereum anchors data on a Layer-1 chain secured by thousands of independent validators worldwide. This setup provides Bhutan with a security model independent of corporate control and aligns it with the Digital Drukyul program, the country’s digital-independence framework.
Interoperability Through Global Standards
By adopting Ethereum, Bhutan also ensures compatibility with international standards such as W3C Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs). These frameworks allow credentials to function seamlessly across apps and ministries. In addition, the move connects Bhutan to the broader self-sovereign identity (SSI) ecosystem, where individuals can verify attributes without exposing personal data. Because Ethereum hosts most tools and libraries for SSI, Bhutan’s developers can rely on mature, well-audited infrastructure rather than maintaining isolated systems.
Privacy by Design: The Zero-Knowledge Layer
Security and privacy often pull in opposite directions. However, Bhutan’s national digital identity aims to balance both through zero-knowledge identity proofs, which allow citizens to verify their identity without revealing personal information on-chain. Furthermore, Ethereum’s open-source ZK tooling and peer-reviewed audits offer a solid base for these privacy-preserving features. GovTech Bhutan also clarifies that no plaintext personal data is stored on the blockchain, only cryptographic commitments verified through smart contracts.
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Governance and Sustainability
The migration reflects Bhutan’s long-term vision for open digital infrastructure. Ethereum’s community-driven governance ensures that protocol changes occur through public consensus rather than closed decision-making. Consequently, Bhutan can rely on technology that evolves transparently. That model aligns with Bhutan’s view that essential digital systems, such as identity, should rely on globally verifiable, community-maintained technologies. The partnership with the Ethereum Foundation, whose director Aya Miyaguchi attended the launch in Thimphu, provides technical guidance and independent audits throughout the rollout.
Timeline and Next Steps
The Polygon-to-Ethereum migration is already underway. Integration was completed in October 2025, and the full credential registry should go live by early 2026. Existing Polygon components will likely remain for caching or low-cost verification. Meanwhile, all authoritative identity records will settle on Ethereum’s mainnet. Next, GovTech Bhutan plans to expand API access for banks, telecoms, and public institutions to enable cross-service authentication.
What It Means for Citizens
Once the migration from Polygon to Ethereum is complete, citizens will experience faster onboarding and unified verification across ministries. For example, a single NDI credential could authenticate users for healthcare, finance, and education without separate logins. Moreover, cross-border recognition of credentials could simplify remittance and e-KYC processes for Bhutanese working abroad.
Bhutan’s Role in the Global Digital-ID Trend
By building on Ethereum, Bhutan becomes the first nation to anchor a population-scale digital identity on a public blockchain. Other countries, such as Vietnam and Brazil, are studying similar architectures but remain at the pilot stage. Therefore, Bhutan’s decision signals rising governmental confidence in Ethereum’s blockchain for national ID systems and may influence future Web3 adoption in Asia.
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Bhutan’s migration to Ethereum demonstrates how developing economies can use open-source networks to deliver secure public services. Still, the project’s success depends on efficient rollout, citizen trust, and strong privacy safeguards. If these elements align, Bhutan could set a global benchmark for integrating self-sovereign identity into national systems. Ultimately, the shift to Ethereum shows how blockchain can evolve from a developer playground into a foundation for real-world governance.
Readers’ frequently asked questions
What does Bhutan’s national digital identity on Ethereum actually do for citizens?
It allows Bhutanese citizens to verify who they are digitally when accessing government or private services. Instead of logging in to multiple systems, they can use one secure credential stored off-chain but verifiable through Ethereum smart contracts.
Does moving the national digital identity to Ethereum mean personal data is public?
No. Only encrypted proofs and cryptographic commitments are written to the blockchain. Personal information stays stored off-chain under government-managed infrastructure, and verification uses zero-knowledge identity proofs to confirm authenticity without revealing data.
When will Bhutan’s migration from Polygon to Ethereum be completed?
The integration was finalized in October 2025. Full credential migration and service rollout are scheduled for completion by early 2026, according to GovTech Bhutan.
What Is In It For You? Action items you might want to consider
Watch how governments use public blockchains
Bhutan’s move could shape global attitudes toward Ethereum as a secure foundation for verified digital identity systems.
Follow the rise of privacy-preserving identity tech
Zero-knowledge identity proofs are becoming essential tools for balancing personal data protection with verifiable credentials.
Track Ethereum’s expanding institutional footprint
National-level integrations like Bhutan’s may boost confidence in Ethereum’s long-term role as infrastructure for sovereign and enterprise-grade applications.
