Estonia Blockchain and E-Residency - How It Works?
In the recent decade, Estonia has emerged as the most advanced digital nation, and many speculate that Estonia may even be considered as the "country of the future".Well, if you are a Blockchain enthusiast and looking forward to cryptocurrency investments in Estonia, this is going to be a useful and informative article for you. You should think, first of all, familiarise yourself with the concept of Blockchain technology. You might have heard that there are a lot of benefits of using this technology, but exactly how we are able to reap these benefits, let's discuss this.
It would not be wrong if you interpret Blockchain as a "digital ledger".
The information is stored in "Blocks" and also note that this information or data can be managed by multiple users across the network. So, this ensures decentralisation of data, that's why Blockchain is so secure and efficient. As we know that the foundation of Estonia's digital society is Blockchain, so let's see how Blockchain is used efficiently to run e-government.
1) Ensuring the Protection of Data
One of the biggest challenges for any government to implement a system of digital society is to ensure that the data of users is protected against unauthorized access. Of-course, the privacy of data should be the major concern for e-government. However, at the same time, striking a balance between privacy and transparency (equal access to all members of a blockchain system) is highly important for e-governments, especially the democratic countries.
2) The Reason Why Blockchain is the Backbone of the Estonian Government
It was first in 2009 when Blockchain was introduced in the world. In the year 2012, Estonia embraced Blockchain technology, in addition to this, Estonia has always been a supporter of digitalisation, that's why the Estonian government considers access to the internet as a basic human right. It's worth mentioning here that the Estonian government has a strong policy framework that acts as the backbone of the system, ensuring data protection. It is in this policy framework where the "once-only-principle" has been specified which ensures that any piece of information cannot be stored in the Blockchain system more than once. Isn't it quite amazing that in a Blockchain system, one can easily detect data manipulation? That's the only reason why it is almost impossible to hack into such a system.
3) Blockchain Platform
You might be wondering which platform for Blockchain is used in Estonia, then note that Keyless Signature Infrastructure (KSI) is used in Estonia. KSI has been designed keeping in mind 100% data privacy is the first priority. With the help of this platform KSI, any kind of effort to manipulate the data illegally can be detected, therefore ensuring a secure database. Hashing is used in order to implement the "immutability" feature of Blockchain and keeping a "Proof-of-existence" for a piece of information stored in the network. Not only in Estonia, but Blockchain technology has also been deployed in many other countries such as Japan, UK, USA, Switzerland, etc.
It seems that there are endless opportunities for governments all across the world to digitise their countries using these amazing benefits of Blockchain.
In the end, if you need help starting your Blockchain-based company in Estonia, consulting Consulting24.com for the right advice.