Learning in the World’s Leading-Edge Digital National Estonia | The Future of Electronic Government and Blockchain

The world’s growing number of companies that use blockchains will probably be known to those who have handled cryptographic assets. On the other hand, the blockchain is going to be used to form networks in countries around the world, beyond the framework of companies and individuals.
Estonia, which I will introduce this time, has a state-of-the-art block chain utilization case as a country. Estonia is famous as a digital nation since about 2000, but from now on, small countries are thriving to build stronger networks by making the most of blockchains.
Here, we will examine how it will affect the rise of cryptographic assets and virtual currency in the future, referring to the blockchain utilization cases in Estonia.

The world’s best digital society | Estonian virtual state case

Estonia is a Nordic country just a bit further northeast than Germany. The country is made up of more than 1,500 islands and is famous for its beautiful beaches and lakes, but its population is only 1.3 million (in 2017).
Although this Estonia is a small country in terms of land area and population, it is actually attracting attention as an advanced country in the digital society. We also have many Japanese users Skype (Skype) also originated in this Estonia.
Around 1990, a government-related organization called the Tiger Leap Fund has already introduced computers and network infrastructure to schools in each region. Furthermore, around 2000, we started the basic system of the My Number system currently in progress in Japan. We converted all kinds of information, such as resident registration, tax payment, education, child care, etc., and issued a national ID, and data management by the government advanced.
It is well-known that Estonia is an advanced digital country that has been aware of the future of such information data and computerization early and is actively taking measures, mainly by the government.
Estonia’s My Number System associates an ID number with each and every citizen and issues a dedicated card according to its numbering. This ID card also has a role as an identification document as well as a driver’s license.
Not only residents can be Estonian ‘people’. The e-Residency System, which was launched in 2014, recognizes that even people who do not live in Estonia can become electronic nationals (virtual people).
Being a fictional citizen, it is possible to create a corporation or bank account in Estonia, so 50,000 people from 165 countries have registered and now more than 6,000 corporations have been established. Japan’s Prime Minister Abe has also been registered as a virtual citizen of Estonia.
Well, in order to store such electronic data of the people, a system that is safe and convenient for the people of Japan and overseas is essential. So the Estonian government’s attention was on blockchains that are familiar with crypto assets and virtual currencies.
The following items introduce Estonian blockchain use cases. This is important information for investors as the rise of blockchains greatly affects the value increase of cryptographic assets.

How to use the Estonian government blockchain

The blockchain mechanism allows systems that have previously managed information centrally (such as a government or a company) to be distributed and managed among users who use that data.
For example, when buying and selling bitcoins, this blockchain mechanism is used. In the case of a securities company that handles stocks, FX, etc., the business side managed all the customer’s (investor’s) transaction information.
On the other hand, there are neither companies nor organizations that manage trading information such as Bitcoin. Instead, it stores the transaction information of cryptographic assets on the computer of each user (mostly investors) in a distributed manner, and employs a mechanism that allows anyone to view the data.
Even if one piece of information has been tampered with, it is possible to retroactively restore backup data that is distributed and stored throughout the network. If you try to do hacking or tampering, it is necessary to rewrite all such distributed information, making such fraud impossible.
The Estonian government noticed this high level of safety, and is working on storing data such as personal information and transaction information of the people on a blockchain. This “National ID Network” allows participants such as government, hospitals and companies to view data freely, but all access records remain.
In addition, in partnership with the Estonian security company Guardtime, it can be said that the transparency of personal information is ensured by setting severe penalties for unauthorized access.

Possibilities of blockchains | Jump over people and companies

By using blockchains, it is possible to store and use any electronic data that exists in society safely and conveniently (such as easy access) as in the case of Estonia. The My Number system, which has been developed in Japan and other countries, will be focused on the use of blockchains later on.
In addition, large global companies such as IBM, Amazon, and Walmart are already working on new technologies that utilize blockchains. From now on, it is expected that new countries and societies will be formed by jumping over the framework of individuals and companies, and connecting the networks of each government on the electronics.
In the relationship between countries until now, the power relationship of each country was decided mainly by the “territory”. However, from now on, there is a possibility that a new country’s network will be established in small countries such as Estonia, using “data” as a weapon.
With such a new era, blockchains are the best way to go about storing, managing, and using data. As people, companies, and even countries (governments) focus on blockchains, it is hoped that the value of cryptographic assets will also increase.


The case of Estonia’s e-Government will be used as a benchmark for developed and developing countries in the future. The attitude towards blockchains is forgiving itself, and it is not surprising that the Estonian government will issue cryptographic assets in the future.
Cryptographic assets recorded a major fall in 2018, centering on bitcoin. However, the price of 1 BTC = 600,000 yen was surpassed in April 2019, and signs of recovery have been shown gradually. That is also because positive topics such as these blockchains have been gradually increasing.
In the future, we will pay attention to the future, whether it will focus on key currencies such as Bitcoin and Ethereum again, or whether new cryptographic assets with completely different characteristics will emerge.