Bhutan’s Digital Identity Revolution

From Databases to Digital Identity

Section 1 of 6

Digital identity is shifting from siloed government databases to more open, interoperable systems. In this video, we’ll explore why traditional models struggle with privacy, how self-sovereign identity works, and why Bhutan’s national strategy is becoming a global reference point.

Key Takeaways

Digital identity is shifting from siloed government databases to more open, interoperable systems.
In this video, we’ll explore why traditional models struggle with privacy, how self-sovereign identity works, and why Bhutan’s national strategy is becoming a global reference point.

The Digital Dilemma

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Modern societies rely on data transparency, yet individuals also demand strong privacy. Public blockchains can expose too much information, while centralized databases create single points of failure and control. This digital dilemma forces governments to choose between openness, user rights, and security, highlighting the need for new identity architectures that balance all three.

Key Takeaways

Modern societies rely on data transparency, yet individuals also demand strong privacy.
Public blockchains can expose too much information, while centralized databases create single points of failure and control.

Self-Sovereign Identity Explained

Section 3 of 6

Self-Sovereign Identity, or SSI, gives people direct control over their digital identity. Governments or institutions issue credentials, citizens hold them in secure wallets, and service providers verify them cryptographically. Instead of accounts scattered across many databases, individuals selectively share only what’s necessary, reducing data collection, improving security, and strengthening personal autonomy online.

Key Takeaways

Self-Sovereign Identity, or SSI, gives people direct control over their digital identity.
Governments or institutions issue credentials, citizens hold them in secure wallets, and service providers verify them cryptographically.

Bhutan’s Move to Public Blockchain

Section 4 of 6

Bhutan is anchoring its national digital identity on a public blockchain, targeting Ethereum deployment in late 2025. Only proofs and identifiers, not sensitive personal data, are anchored. This step combines the transparency and resilience of a global blockchain network with strong local governance and privacy-preserving identity management for citizens.

Key Takeaways

Bhutan is anchoring its national digital identity on a public blockchain, targeting Ethereum deployment in late 2025.
Only proofs and identifiers, not sensitive personal data, are anchored.

Anchors, Not Personal Data

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Instead of storing personal details on-chain, the system anchors verifiable credentials. These anchors are cryptographic fingerprints that prove a credential exists and hasn’t been tampered with. Verification happens using these anchors, while actual personal data stays encrypted and under the citizen’s control in a digital wallet, minimizing surveillance and large data honeypots.

Key Takeaways

Instead of storing personal details on-chain, the system anchors verifiable credentials.
These anchors are cryptographic fingerprints that prove a credential exists and hasn’t been tampered with.

Putting It All Together

Section 6 of 6

Digital identity is evolving from opaque, centralized records to citizen-controlled, standards-based credentials anchored on public blockchains. Bhutan’s approach illustrates how privacy, interoperability, and government trust can coexist. Understanding these principles helps policymakers, technologists, and citizens shape fair, secure digital societies in the years ahead.

Key Takeaways

Digital identity is evolving from opaque, centralized records to citizen-controlled, standards-based credentials anchored on public blockchains.
Bhutan’s approach illustrates how privacy, interoperability, and government trust can coexist.

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