State Blockchain: Why Governments Launch Decentralized Registries

Blockchain, introduced as the foundation of Bitcoin and other cryptocurrencies, now shows strong potential as a practical tool for public administration. Some governments have already begun adopting this forward-looking technology, setting key examples for others to follow.

This article looks at how several countries are actively using blockchain in government institutions and public registries, including:

• Estonia
• Georgia
• Denmark
• Australia

Estonia: A Pioneer in Digital Governance

Estonia has rightfully earned its reputation as a trailblazer in government blockchain adoption. Since 2008, the country has used Keyless Signature Infrastructure (KSI), a system that isn’t a traditional blockchain but follows the same distributed ledger principles to protect data integrity.

KSI timestamps records and verifies the authenticity of information, making it an ideal solution for securing national registries.

Related: Can Blockchain Fix Government Spending? Brian Armstrong Thinks So

Estonia introduced its nationwide e-Estonia strategy back in 2012, and it remains in effect today. At the heart of the initiative is the use of distributed ledger technology across as many areas of daily life as possible.

A core use case for the system is electronic healthcare (e-Health). All medical records are stored in a secure database, and only state-authorized medical institutions can amend that data. 

As a result, this setup allows doctors and patients to share information securely, with confidence that records can’t be altered, deleted, or leaked. For instance, when a patient arrives at a hospital, the doctor can instantly access their medical history, knowing that previous test results, diagnoses, and prescriptions are authentic.

Related: Blockchain in healthcare

Blockchain is also part of Estonia’s e-Residency program, which lets foreign nationals register and manage businesses remotely.

The system secures all documents and transactions using blockchain, making the process transparent and trustworthy. According to the Estonian government, more than 100,000 people from 170 countries had become e-residents by 2025, and many of them rely on blockchain to operate their companies.

A similar digital residency program is also available in the island nation of Palau. We covered that in our article, Palau Launches a Digital Residency Program.

Moreover, Estonia uses blockchain to protect:

• Court records
• Public contracts
• Election results

For example, the technology ensures the transparency of electronic voting, reducing the risk of fraud. 

Today, Estonia demonstrates how blockchain can integrate into government processes, though it continues to spark debates about the balance between decentralization and state control. 

Related: How to implement elections on blockchain?

Georgia: Blockchain for the National Land Registry

Georgia was one of the first countries to implement blockchain technology in its land registration system. Since 2016, the National Agency of Public Registry (NAPR) has worked with the company Bitfury to move land titles onto the blockchain. This initiative aims to combat corruption and fraud, which have long been issues in the country’s real estate sector.

Before blockchain implementation, the property registration process in Georgia was slow and vulnerable, with the risk of document forgery and disputes over transactions in court. Today, all data on land and real estate (both residential and commercial) is securely stored on a distributed ledger, with each transaction verified through smart contracts. 

This shift has cut the registration time from several days to just a few minutes. 

By 2025, Georgia had recorded over 2 million transactions on the blockchain, positioning the country as a leader in this space.

Read more: Real Estate for Cryptocurrency: Lawyers Express Doubt

Moreover, Georgia is also experimenting with government blockchain in other areas. One such initiative is using blockchain for public procurement, a move designed to curb corruption and boost transparency.

The country is also exploring the integration of blockchain into its electronic voting system to make elections more secure and reliable.

These innovations strengthen Georgia’s reputation as a reform-minded nation and are drawing attention from international investors who value transparency and efficiency.

Related: Why Crypto Nomads Are Quietly Flocking to Tbilisi

Denmark: Blockchain for Government Insurance and Social Payments

Denmark’s innovative use of blockchain technology is exemplified by its Vehicle Wallet, developed by the Danish Tax Administration. 

This system uses blockchain to streamline vehicle-related data management. The system tracks essential information, including:

• Vehicle registrations
• Insurance details
• Tax records
• Outstanding fines 

By integrating blockchain, the system ensures data consistency across various government departments, reducing administrative costs and removing the need for manual processing.

Vehicle Wallet also helps combat fraud. For example, the system can automatically flag vehicles that haven’t passed technical inspections or lack valid insurance. This enhances road safety while boosting tax revenue, as it prevents vehicle owners from evading mandatory fees. 

By 2025, over 80% of vehicles in Denmark were registered in the system, according to the Danish Agency for Digitization. This achievement has positioned Vehicle Wallet as one of Europe’s most successful blockchain initiatives.

Related: Autonomous Vehicles: The Progress and Challenges in 2024

Another major area where Denmark leverages blockchain is anti-corruption. 

Back in 2018, the Ministry of Foreign Affairs released a report titled Code to Integrity, highlighting blockchain as a powerful tool to prevent corruption, especially in humanitarian projects like refugee camp operations. 

The technology allows for transparent tracking of aid distribution, ensuring resources reach the intended recipients instead of being diverted. Smart contracts verify eligibility automatically, eliminating opportunities for fraud.

Denmark is exploring how blockchain can improve the management of public spending. As part of the national Strategy for Denmark’s Digital Growth, the government is assessing how the technology can help track budgets allocated to social programs and benefit payments. 

This initiative is especially relevant in sectors like healthcare and education, where transparency is critical. Officials believe a government-backed blockchain could serve as a powerful tool to strengthen public trust in institutions.

Related: How to Replace the Government with a Blockchain?

Australia: Blockchain Powers Government Digital Services

Australia has been actively exploring blockchain applications across key areas of public administration, from social welfare distribution to land registry management. 

One of the country’s flagship initiatives is the National Disability Insurance Scheme (NDIS). Developed by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in collaboration with Data61, the system leverages smart contracts to automate payments directly to program participants. 

The original goal of the project was to create a smart money system that would allocate funds automatically based on each participant’s needs. For example, if a person with a disability required medical services, the system could direct the payment to the appropriate provider, removing the risk of misuse. Although the National Disability Insurance Agency (NDIA) later chose not to implement blockchain in the program, the trial demonstrated blockchain’s potential to streamline public welfare payments. 

Related: Australian Crypto Investors Poised to Impact Election Outcomes

In 2025, Australia is still testing blockchain in various social programs to reduce bureaucracy and improve efficiency. For example, the Australian Pension Fund has been urging lawmakers to establish clear regulations that would enable it to operate in the crypto market.

Another important use case for blockchain in Australia is land registry management. Since 2018, New South Wales (NSW) has been running a pilot project to migrate its land cadastre to a government blockchain system. 

By 2025, a large share of land titles in Australia is stored on a blockchain, making property registration more efficient and reducing the risk of fraud. Smart contract automation allows real estate transactions to be completed in just a few hours rather than days.

Blockchain also plays a role in streamlining Australia’s public procurement system. The Department of Finance has been testing the technology to monitor contracts and payments, aiming to improve transparency and reduce the risk of corruption or misallocated funds. 

In 2024, a pilot program in Victoria recorded all infrastructure construction contracts on a blockchain. This allowed real-time monitoring of government spending and detecting any discrepancies.

Related: HUD Considers Blockchain Implementation to Enhance Transparency

Now, Australia is preparing to roll out a unified blockchain-based platform for public services, covering everything from tax filings to vehicle registration and marriage certificates. 

While the project is ambitious and could set a global precedent, it has already sparked debate over privacy and data security. Critics point to past scandals, such as the Robodebt program, where over-automation led to widespread errors in tax assessments.

Related: WhiteBIT Expands Horizons: Launch of The Cryptocurrency Exchange in Australia

Switzerland: A Crypto Valley with Government Blockchain 

Switzerland (particularly the city of Zug, often called “Crypto Valley”) has taken a proactive role in integrating blockchain into public services. Since 2018, Zug has used blockchain technology to manage citizen registration through a digital identity system (eID), which became available to all residents in 2020.

Residents can use these digital IDs to access government services such as voting and filing tax returns. The system improves convenience and security, ensuring that personal data remains well-protected.

Switzerland is also applying blockchain to corporate registry management. In the canton of Zug, businesses can register and manage official documents using blockchain technology, simplifying procedures and reducing costs.

For example, entrepreneurs can establish a company, pay required state fees in cryptocurrency, and receive a digital certificate recorded on the blockchain.

This solution has become especially attractive to crypto startups, many of which choose Zug as their operational base.

For more on Switzerland’s approach, check out our article: Which Swiss City Aims to Become the Crypto Capital?

Blockchain as a Tool for the Governments of the Future

Estonia, Georgia, Denmark, Australia, and Switzerland offer real-world examples of how blockchain can reshape public administration.

From safeguarding medical records to streamlining social welfare, blockchain helps address some of the most pressing issues:

• Corruption
• Bureaucracy
• Declining public trust 

For crypto-minded individuals, these initiatives represent a shift toward a more transparent and equitable society. Government blockchain shows that decentralization can be effective not only in finance but also in public administration, setting new standards for how citizens interact with the state. 

Looking ahead, more countries are likely to follow this path, making blockchain a core element of future government infrastructure.

Related: How Blockchain Helps Combat Disinformation