From The Rise and Fall of the Danish Empire, by Michael Bregnsbo and Kurt Villads Jensen (Palgrave Macmillan, 2022), Kindle pp. 330-332:
The cession of the duchies [Schleswig, Holstein, Lauenburg] in 1864 meant that Denmark now became a nation-state. A nation-state is defined as a state where there is one common culture, one common language, one common history, etc. There were certainly still other nationalities within the Danish empire, namely Icelanders, Faroese, and Greenlanders along with the nationally and ethnically diverse population of the West Indies. However, the relationship cannot be compared at all with the Danish-German united monarchy. When tallied both separately and together the above-mentioned groups represented such a small proportion of the inhabitants of the empire, whereas those that were German-affiliated had made up a third of the inhabitants in the united monarchy. On the other hand, this did not mean that all Danes lived in Denmark. There were around 200,000 Danish-minded southern Jutlanders in Schleswig, who after 1864, became German citizens against their will.
For Prussia, 1864 had been a stepping-stone in a longer process towards a united Germany under Prussian rule. This goal was met in 1870 when Germany became a unified, centralized empire. This put the Danish state in a completely new historical situation. Previously it had been a medium-sized European state, and while Germany had been an empire or later a confederacy, it was relatively decentralized and consisted of many different and both large, medium, and small states. The Danish empire had been larger than many of these German states. Now the balance of power was markedly different: Denmark had in 1814 and even more so in 1864 become a smaller state, while Germany had become the continent's largest power. Denmark's position was thereby extremely vulnerable and threatened. For Denmark, there was nothing to do but pursue a policy of neutrality, but in practice take extensive account of its overpowering neighbor. During World War I in 1914–1918, Denmark managed to remain neutral by adapting to its great neighbor to the south.
Internally in Denmark, 1864 represented a trauma that had an effect on Danish politics and the general way of thinking for a very long time. Together with Germany's unification in 1870, widespread concern was raised about the extent to which it would ultimately be possible to preserve Denmark as an independent state.
The nation-state of Denmark was the successor to a much larger empire. Copenhagen remained the capital. It was a legacy of the far greater empire that this smaller state should be organized as a highly centralized state with all of its important institutions gathered in the capital rather than following a federal state structure with considerable independent, regional decision-making power. When virtually all nationwide institutions and organizations of importance were also located in Copenhagen after 1849, and that Copenhagen is by far the largest city in Denmark, was a result of Copenhagen’s status in the empire transferring to the smaller state of Denmark's capital. It can thus be compared to an overcoat that is several sizes large. The historian Steen Bo Frandsen has written on these conditions: “The construction of a national economy placed Northern Jutland in the role of supplier of raw materials and of people for Copenhagen's expansion. Denmark was designed entirely on the capital's premises and Copenhagen became, if possible, even more than ever the Danish state … Everything of importance was located in Copenhagen. Industrialization strengthened the city's dominance” (Frandsen 1996, 566).
A new constitution was adopted in 1866.
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