e-Estonia refers to the digital society of Estonia, which facilitates its citizens' and residents' interactions with the state through the use of ICT solutions. Estonian e-services created under this initiative include e-Tax Board, e-Business, e-Banking, e-Ticket, e-School, University via the internet, the e-Governance Academy, i-Voting, [1] [2] as well as the release of several mobile applications. [3] According to the goals set in Estonia's Digital Agenda 2030, the country aims to assure that high-speed internet is available across the country, the digital government services are the best in the world, and the country's cyberspace is reliable and safe by 2030.
After the Estonian Restoration of Independence in 1991, the country was faced with the necessity to build a new technology infrastructure with very few resources, while trying to catch up with the West as quickly as possible. Most of the existing infrastructure was Soviet legacy; less than half of the Estonian population even had a phone line. The first Prime minister Mart Laar and his government saw this as an opportunity to build low-cost, cutting-edge systems based on accessibility and efficiency [4] He pushed the country through a period of modernization, establishing the foundation needed to bring the country into the digital age. In 1992, Finland offered Estonia their old analogue telephone exchange for free, as they were replacing it with digital connections. Laar refused this donation and decided Estonia would build its own digital system. [5] As a result, people went from having no phone connections to buying cell phones, causing Estonia to leapfrog the analogue world altogether. [5]
In 1994, Estonia started drafting its first IT development strategy, the "Principles of Estonian Information Policy", which was approved by the Estonian parliament four years later. This strategy created permanent funding of 1% of GDP for IT, making developing IT solutions unaffected by political uncertainties. [4]
One of the main cornerstones for the Estonian digitalization success story was the Tiigrihüpe (Estonian for Tiger Leap) programme initiated in 1996 by the then Estonian Ambassador to the United States, later President of Estonia, Toomas Hendrik Ilves, and the then Minister of Education, Jaak Aaviksoo. The idea of this project was to heavily invest in the development and expansion of computer and network infrastructure in Estonia through public-private partnerships, with a particular emphasis on education. [6] As a result, by 1997, 97% of Estonian schools had an internet connection. [5]
The next major developments in the Estonian digitalization journey were the establishment of the first e-banking services and e-cabinet for the government in 1996, the opportunity for Estonians to declare their taxes online through the e-tax authority since 2000, and most importantly, the creation of Estonian X-Road. [7]
The technology underpinning Estonian digital society is the distributed data exchange layer for registers and information systems called X-Road (X-Tee). The X-Road project draft was submitted and the data exchange was set up in 2001, however, the initial discussions started as early as 1998. [8] The first actual steps were taken in 2000 when, on the initiative of the advisor to the Prime Minister, Linnar Viik, the X-tee pilot project was initiated. The funding came from the budgets of the Ministry of Transport and Communications, Ministry of the Interior, and the Government Office, coordinated by the state information system department (RISO) of the Ministry of Economic Affairs. [8] The main idea, in addition to providing a safe data exchange platform and avoid leaking sensitive personal was to create one central unit where Estonian citizens would be able to both receive and give information, government's officials could use just one central state database and entrepreneurs would have the possibility to use the information in state databases for the benefits of their business. [8] Today, the X-Road has become the backbone of e-Estonia, allowing the nation's public and private sector information systems to link up and operate in harmony. 99% of public services are accessible online 24/7. [4] There has been controversy around the actual use of blockchain technology in X-Road and e-Estonia, which appeared in news outlets [9] and was later denied by the Nordic Institute for Interoperability Solutions, [10] [11] which audited X-Road. Other parts of e-Estonia have been also analyzed with doubts about its claimed use of blockchain technology. [12] [13]
In 2002, Estonia created a digital identification system, based on the mandatory ID card. The e-Identity system means that all Estonian nationals and residents, regardless of location, have a state-issued electronic identity, called eID which enables them to interact with the state and use all of its services. People use their eIDs to pay bills, vote online, sign contracts, shop, access their health information, and much more. [14] In 2017, a Czech research team found a vulnerability in the physical chips used in many of the eID cards to establish identity, leading to the cards being temporarily locked. [15] [16] According to the Estonian State Information System Authority, exploiting the vulnerability would not have been easy or inexpensive, and there were no known cases of successful exploitation of the ID card or similar chips. In fact, no such cases were known by the time Estonia revoked the affected certificates. [17]
In 2014, Estonia became the first country to offer electronic residency to people from outside the country, a step that the Estonian government terms as "moving towards the idea of a country without borders." [18] The program, called e-Residency, is meant for anyone who wishes to become an e-resident of Estonia and access its diverse digital services, regardless of citizenship or location. Non-residents can apply to have a smart ID card issued to them by the state, providing the same access to Estonia's various electronic services that a physical resident would be given. Use of the card for authentication with these services requires a four-digit pin code. The card, in conjunction with a separate pin code, also allows e-residents to digitally sign documents over the internet, a practice that is legally binding anywhere in the EU. [19] While e-residency provides access to these services, it does not grant physical residency, the right to enter the country, or the ability to use the smart ID card as physical identification or as a travel document. [20] It does not imply any support from the Estonian government in obtaining electronic residence. [21] It is also not a way to avoid paying taxes in the country of actual residence – instead, one becomes a taxpayer both in Estonia and in the country where one is a citizen and tax resident. [22]
In the field of healthcare, Estonian paramedics have access to an e-ambulance app, which – via X-Road – allows medical personnel immediate access to patient medical records. [16] The system is also used for telemedicine. [16] Since 2010, e-prescription was established, nowadays 99% of medical prescriptions are handled online; routine refills can be issued without appointments. Since 2020, Proactive Child Care was introduced, meaning that parents of a newborn no longer need to apply for benefits.
e-Estonia enabled electronic voting via the i-voting app, which used an I.D.-card-based system to cast ballots remotely. [16] In 2014, approximately one-third of all votes were cast using the app. [16] Since 2000, Estonians have been able to declare taxes online. Now 98% of people declare their income electronically. In the year 2022, m-Parking was also established, which is a system that enables drivers to pay for city parking via mobile phone. In 2022, e-Cabinet meetings were introduced, which reduced government bureaucracy.
An identity document is a document proving a person's identity.
Digital currency is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital currencies include cryptocurrency, virtual currency and central bank digital currency. Digital currency may be recorded on a distributed database on the internet, a centralized electronic computer database owned by a company or bank, within digital files or even on a stored-value card.
An electronic identification ("eID") is a digital solution for proof of identity of citizens or organizations. They can be used to view to access benefits or services provided by government authorities, banks or other companies, for mobile payments, etc. Apart from online authentication and login, many electronic identity services also give users the option to sign electronic documents with a digital signature.
Permanent residency is a person's legal resident status in a country or territory of which such person is not a citizen but where they have the right to reside on a permanent basis. This is usually for a permanent period; a person with such legal status is known as a permanent resident.
A national identification number, national identity number, or national insurance number or JMBG/EMBG is used by the governments of many countries as a means of tracking their citizens, permanent residents, and temporary residents for the purposes of work, taxation, government benefits, health care, and other governmentally-related functions.
Mobile identity is a development of online authentication and digital signatures, where the SIM card of one's mobile phone works as an identity tool. Mobile identity enables legally binding authentication and transaction signing for online banking, payment confirmation, corporate services, and consuming online content. The user's certificates are maintained on the telecom operator's SIM card and in order to use them, the user has to enter a personal, secret PIN code. When using mobile identity, no separate card reader is needed, as the phone itself already performs both functions.
The Swedish national identity card is a non-compulsory biometric identity document issued in Sweden. It is one of two official identity documents issued by the Swedish Police, the other being the Swedish passport. It is only issued to Swedish citizens, and indicates the citizenship.
The Estonian identity card is a mandatory identity document for citizens of Estonia. In addition to regular identification of a person, an ID-card can also be used for establishing one's identity in electronic environment and for giving one's digital signature. Within Europe as well as French overseas territories, Georgia and Tunisia the Estonian ID-card can be used by the citizens of Estonia as a travel document.
Internet in Estonia has one of the highest penetration rates in the world. In the first quarter of 2010, 75% out of 1.34 million people in the country used the Internet according to Statistics Estonia. In 2017, according to the World Bank came 13th in the world by the percentage of population using the Internet, with 88.1% people using it.
All European countries show eGovernment initiatives, mainly related to the improvement of governance at the national level. Significant eGovernment activities also take place at the European Commission level as well. There is an extensive list of eGovernment Fact Sheets maintained by the European Commission.
The Portuguese identity card, is an identity document issued by the Government of Portugal to its citizens. The card replaces several previous documents, including the Bilhete de Identidade, Social Security card, National Health Service card, Taxpayer card and voter registration card, in one secure card. The Citizen Card was first issued in the Azores in mid-2006. However, as of 2017 BIs continued to be issued in some cases.
Electronic signature allows users to electronically perform the actions for which they previously had to give a signature on paper. Estonia's digital signature system is the foundation for some of its most popular e-services including registering a company online, e-banks, the e-voting system and electronic tax filing – essentially any services that require signatures to prove their validity.
A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Since each block contains information about the previous block, they effectively form a chain, with each additional block linking to the ones before it. Consequently, blockchain transactions are irreversible in that, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.
e-Residency of Estonia is a program launched by Estonia on 1 December 2014. The program allows non-Estonians access to Estonian services such as company formation, banking, payment processing, and taxation. The program gives the e-resident a smart card which they can use to sign documents. The program is aimed towards location-independent entrepreneurs such as software developers and writers. The first e-resident of Estonia was British journalist Edward Lucas; the first person to apply for and be granted e-residency through the standard process was Hamid Tahsildoost from the United States.
The once-only principle is an e-government concept that aims to ensure that citizens, institutions, and companies only have to provide certain standard information to the authorities and administrations once. By incorporating data protection regulations and the explicit consent of the users, the public administration is allowed to re-use and exchange the data with each other. The once-only principle is part of the European Union's (EU) plans to further develop the Digital Single Market by reducing the administrative burden on citizens and businesses.
X-Road is a centrally managed distributed Data Exchange Layer (DXL) between information systems. Organizations can exchange information over the Internet using X-Road to ensure confidentiality, integrity and interoperability between data exchange parties.
Veriff is a global identity verification service company founded and headquartered in Tallinn, Estonia. The company offers services for online businesses to mitigate fraud attempts and assisting regulatory compliance. Offering protection from identity fraud and identity theft, Veriff verifies a customer's identity automatically, using an AI that analyzes a multitude of technological and behavioural indicators, including facial recognition. The service is provided to companies as an API, which has been compared to Stripe.
e-Residency of Lithuania is a program launched by Lithuania on 1 January 2021. The program will allow non-Lithuanian citizens to access services provided by the Lithuanian government and other institutions, such as company formation, declaration of taxes and opening of bank accounts. It provides the e-residents with a smart card, similar to the Lithuanian identity card, which can be used for electronic identification and electronic signature.
Smart-ID is an electronic authentication tool developed by SK ID Solutions, an Estonian company. Users can log in to various electronic services and sign documents with an electronic signature.
The Nordic Institute for Interoperability Solutions (NIIS) is a non-profit established in 2017 by Estonia and Finland, with the mission "to develop e-governance solutions...with the X-Road technology used nationwide in the Estonian X-tee and in the Finnish Suomi.fi Data Exchange Layer services". It is funded by both countries, with around 1M€ annually. In 2019, Iceland was invited as well, and later the Faroe Islands.