Estonia and Blockchain - Everything You Need To Know
Back in 2008, when Blockchain technology was introduced to the world, it was not expected that a country with a population of 1.3 million would become the most popular destination for cryptocurrency investment in 2020. If you are a Bitcoin enthusiast, you probably know about which country we are talking about, its Estonia. It would not be wrong if we say that Estonia is the country of the future.
Also, it's worth mentioning here that Skype was founded in the year 2003 in Estonia. Despite the nationwide interruption caused by the 2007 cyberattacks on Estonia, it seems that these cyberattacks have given Estonia the golden opportunity to leverage their potentials and become a secure digital nation in 2020. You will be amazed to know that any foreigner can access or avail the Estonian government's services.
Estonia and Blockchain - The Idea of E-Residency
The concept of e-residency proved to be the most revolutionary step towards becoming a digital nation. Now, we are sure that you are wondering what kind of technology is used to establish such an amazing digital infrastructure. It's worth mentioning here that encryption technology is used in eID systems and PKI( Public Key Infrastructure). Also, make note that use of 2-factor authentication helps to ensure a secure system. Even though the data is decentralized, the secure transmission is made possible because of X-Road technology.
Overall, you should understand that X-road is the foundation of this digital nation Estonia.
It is highly significant to understand that Estonia has leveraged the potentials of Blockchain technology to a whole new level. It's only because of Blockchain that we see the smooth operations of cryptocurrencies like Bitcoin and Eutheruem. In case you don't know about Blockchain, then to put it in simple words we can say that Blockchain is just a digital ledger. Still, unlike your normal leaders, it is very difficult to modify the information stored in the "Blocks" or hack into the system. Also, you'll surely be fascinated to note that Blockchain offers decentralization capabilities which helps in eliminating the trust issues since multiple users participate in maintaining the network. This shows how with the help of Blockchain the people of Estonia have the "power" in their hands. However, in order to ensure smooth and secure operations, the governments should ensure the following-
For governments who are looking forward to developing a secure digital system, verification of online identities to ensure the safety or the security of the system seems to be most critical. In the blockchain system, nothing is more significant than verifying the identity of "online" people.
The Estonian government seems to endeavor to simplify the KYC process. Note that the Estonian government itself issues digital identities via e-Residency.
#2 Policy Framework
No doubt, a strong policy framework acts as a foundation of an advanced digital nation ensuring consumer protection. The only reason that makes Estonia as the most coveted startup hub is because of a policy framework with strict KYC rules, that encourages cooperation between the private and public sector.
In the end, if you planning to launch a business based on Estonia and Blockchain, then you must reach out to a local consultant to guide you with the process of setting up your company in world’s first digitalized society.