Introduction to the Identity Virtual Machine (IVM)

The podcast begins with a detailed explanation of Galactica's latest project, the Identity Virtual Machine (IVM). This virtual machine has been in development since the inception of Galactica, aiming to define and revolutionize identity management on the blockchain. The hosts draw a comparison between IVM and Ethereum’s EVM (Ethereum Virtual Machine) to help listeners understand the core functionality of IVM. While EVM executes smart contracts, IVM introduces the ability to compute over encrypted data, bringing privacy-preserving computation into the blockchain space. This is crucial for handling sensitive data like financial transactions, medical records, and decentralized finance (DeFi) applications.

Solving Privacy Issues in Blockchain

A key aspect of IVM is solving the transparency problem that comes with blockchain technology. While transparency is generally seen as an advantage, it raises privacy concerns, especially for institutions that handle sensitive information. IVM allows users and businesses to compute over encrypted data without needing to decrypt it, combining zero-knowledge proofs and fully homomorphic encryption (FHE). This technology ensures that data can be used securely without exposing it to the public, making IVM especially suitable for industries like healthcare and finance.

The Role of Decentralized Credit Scoring

One of the significant use cases for IVM mentioned in the podcast is decentralized credit scoring. Unlike traditional systems where banks or governments control an individual’s credit score, a decentralized approach using IVM provides transparency and fairness. It empowers individuals to earn back a positive credit score based on reputation and actions, without being at the mercy of centralized institutions. This decentralized system opens up new opportunities for financial inclusion and provides individuals with greater control over their financial reputation.

Addressing the Limitations of Airdrops

The conversation shifts to the concept of airdrops in the blockchain space. The hosts express frustration with the current state of airdrops, where they often benefit only those with the most resources. Galactica's IVM proposes a more equitable solution by rewarding users based on real reputation data, eliminating fake accounts and bots from the equation. The introduction of "soul drops," a new kind of airdrop, ensures that rewards are distributed to genuine contributors rather than those who game the system.

KYC Simplification and Data Sovereignty

The podcast also delves into how IVM improves Know Your Customer (KYC) procedures. Currently, individuals are required to complete KYC processes with multiple service providers, which is inefficient and exposes personal data to numerous entities. IVM addresses this by allowing users to complete a single KYC that can be used across multiple platforms. Using zero-knowledge proofs, users don’t share their data; they only prove its validity. This ensures enhanced privacy and data security, empowering individuals to retain control over their personal information.

Institutional Adoption and Financial Privacy

Institutional adoption is a key focus for Galactica, and the IVM is designed to meet the specific needs of institutions, particularly around financial privacy. Traditional blockchains don’t offer financial privacy, making it difficult for institutions to conduct large-scale transactions without exposing their strategies. IVM solves this by providing privacy-preserving tools, enabling institutions to engage in on-chain transactions without compromising sensitive financial data. This is expected to attract institutional investors who have been hesitant to fully embrace blockchain technology.

Future of Galactica: Interoperability and Use Cases

Looking ahead, the Galactica team emphasizes the importance of interoperability in Web3. They are making Galactica interoperable with other blockchains, allowing users and institutions to move assets and reputation across different platforms. This flexibility is crucial for widespread adoption and will enable Galactica to serve as a backbone for decentralized applications. The hosts also mention potential partnerships and use cases in fields like medical data, reputation systems, and decentralized governance.

Conclusion

The Identity Virtual Machine (IVM) represents a significant leap in blockchain technology by addressing key issues of privacy, data sovereignty, and institutional adoption. Galactica’s approach combines cutting-edge cryptographic techniques with a user-friendly framework, making it a versatile platform for both individuals and institutions. As Galactica continues to roll out new features and partnerships, IVM has the potential to transform how blockchain is used across industries, from finance to healthcare.

You can find recording here : https://drive.google.com/file/d/1q1nvZkh9R78Xx72qyR7nZ4nEqU3NLgni/view?usp=sharing

This summary was done with help of IA tools (vibe for transcription and chatGPT for summary)