Galactica.com: L2 Infrastructure for Web3 Identity, Privacy, and Compliance

What is Galactica.com

Friends, imagine that when we go online nowadays, it’s often like wearing a mask, or rather, we have many different identities—WeChat is one identity, Taobao is another, and our bank account is yet another. These identities don’t communicate with each other, and our personal information is scattered across various platforms, making it hard for us to fully control it ourselves. Galactica.com (abbreviated as GNET) is a project that aims to create a “super digital ID” and a “personal information vault” for us in the blockchain world.

It is a blockchain infrastructure designed to let everyone enjoy the benefits of decentralization brought by blockchain, while also having a digital identity that both protects privacy and complies with real-world regulations.

Target Users and Core Scenarios

This project mainly targets two groups:

• Ordinary users: Those who want a persistent and trustworthy digital identity in the Web3 world, and wish to fully control their own data.
• Enterprises and developers: Teams who want to build blockchain applications (DApps) that require identity verification and compliance (such as financial services) but also want to protect user privacy.

Core scenarios include:

• Privacy-protecting identity verification: For example, you may need to prove you are of legal age, or that you are not from a sanctioned country, but you don’t want to reveal your exact birthdate or nationality. Galactica.com enables you to do this.
• Reputation system: Just as we have credit records in the real world, Galactica.com aims to build your digital reputation on-chain, which can help you get better lending terms in DeFi (decentralized finance), or gain specific permissions in other applications.
• Connecting traditional finance and decentralized finance: By providing compliant identity solutions, it hopes to make it safer and smoother for traditional financial funds (such as banks and funds) to enter the blockchain world and participate in the tokenization of real-world assets (RWA).

Typical Usage Flow

Imagine you want to borrow on a DeFi platform, but the platform requires you to prove your good credit. On Galactica.com, the process might look like this:

1. You use a technology called zkKYC (zero-knowledge proof “Know Your Customer”) to prove your identity information (such as age, residence, etc.) to Galactica.com’s “guardians,” but these guardians do not know your specific information—they only get a “yes” or “no” verification result.
2. These verification results generate a “zero-knowledge certificate”, like an encrypted stamp, proving you meet certain criteria.
3. Your on-chain activities (such as which projects you’ve participated in, how many assets you hold) are also recorded, and together with your zero-knowledge certificate, they build your “on-chain reputation”.
4. When you go to that DeFi platform to borrow, you only need to present your “zero-knowledge certificate” and “on-chain reputation.” The platform knows you meet the borrowing criteria, without needing to know all your personal privacy.

Project Vision and Value Proposition

Galactica.com has a very ambitious vision—it wants to build a “Cypher State”.

Vision/Mission/Values

The “Cypher State” can be understood as a digital society where all social relationships, economic activities, and governance happen directly on the blockchain. Its core mission is to merge the free spirit of cyberpunk with global regulatory standards, allowing users to truly own their data sovereignty and profit from it.

Core Problems Addressed

Galactica.com aims to solve several pain points in the current Web3 world:

• Lack of identity: On many blockchains, we only have an anonymous address, not a trustworthy digital identity linked to the real world. This makes it hard to realize scenarios that require trust and reputation (such as unsecured loans, voting).
• Conflict between privacy and compliance: Real-world financial activities require compliance (such as anti-money laundering, KYC), but this often means sacrificing personal privacy. Galactica.com hopes to achieve compliance while protecting privacy through technologies like zero-knowledge proofs.
• Barriers for traditional finance to enter DeFi: Due to lack of compliance and trustworthy identity, large amounts of traditional financial capital cannot safely enter the DeFi space, limiting DeFi’s further development.

Differences from Similar Projects

There are many projects in the market working on identity or privacy, but Galactica.com stands out because:

• Protocol-level compliant privacy: Instead of simply implementing privacy at the application layer, it embeds zkKYC and other compliance checks directly into the blockchain protocol layer, meaning all applications built on Galactica.com naturally inherit this capability.
• Persistent Web3 identity and reputation: It’s not just a one-time identity verification, but is committed to building a long-term, accumulable on-chain identity and reputation system, like your “credit score” and “social profile” in the digital world.
• Identity Virtual Machine (IVM): This is a highly innovative concept. If the Ethereum Virtual Machine (EVM) handles public account balances, then Galactica.com’s Identity Virtual Machine (IVM) can process encrypted, private data and perform computations on it, such as private credit scoring. This enables complex identity-related functions while protecting privacy.

Technical Features

Galactica.com adopts cutting-edge cryptographic methods to solve privacy and compliance challenges.

Technical Features

• Zero-Knowledge Proofs (ZKPs): This is a magical cryptographic technology that lets you prove a statement is true without revealing any specific information about it. For example, you can prove you are over 18 without telling your exact birthday. Galactica.com uses this to implement zkKYC, enabling “Know Your Customer” verification without disclosing personal identity information.
• Fully Homomorphic Encryption (FHE): This is a more advanced encryption technology that allows computation directly on encrypted data without decrypting it first. Imagine being able to modify and process files inside a locked vault without opening it. This is crucial for handling sensitive data (like medical records, income information) and performing private computations (like private credit scoring).

Technical Architecture

Regarding Galactica.com’s underlying architecture, there are currently several different descriptions, which sometimes happens in the blockchain space as projects may adjust strategies or adopt hybrid architectures during development:

• The whitepaper and some official materials describe it as a Layer 1 (L1) blockchain, i.e., an independent public chain.
• At the same time, some sources indicate it is a Layer 2 (L2) blockchain built using Arbitrum Orbit SDK. Arbitrum Orbit SDK allows developers to build customized L2 chains within the Arbitrum ecosystem.
• It is also mentioned as EVM-compatible (meaning Ethereum smart contracts can be easily migrated), and built on Cosmos SDK. Cosmos SDK is a flexible framework for building customized blockchains.

This multi-faceted description may mean Galactica.com adopts a modular design, or its L1 features are built atop certain L2 technologies to achieve its specific identity and privacy functions. Its core is the Identity Virtual Machine (IVM), a “computer” dedicated to processing encrypted identity data, unlike the Ethereum Virtual Machine (EVM) which handles public data.

Consensus Mechanism

Currently, public information does not detail Galactica.com’s specific consensus mechanism (such as PoS, PoW, or others). As an L1 or L2, it will rely on its underlying architecture or its own design to ensure network security and decentralization.

Tokenomics

Galactica.com’s token is GNET, which is the core of the network’s operation and incentive mechanism.

Token Basics

• Token symbol: GNET
• Issuing chain: Although the project is L1/L2, its token may be issued on other mainstream chains; for example, CoinMarketCap shows its contract address may be on Ethereum.
• Total and maximum supply: Both the total and maximum supply of GNET are 1 billion.

Current and Future Circulation

• Self-reported circulating supply: According to the project’s own data, the current circulating supply is about 30.03 million GNET, about 3% of the total supply.

Token Utility

The GNET token plays multiple roles in the Galactica.com ecosystem:

• Network fees: Used to pay transaction and smart contract execution fees (gas fees) on the Galactica network.
• Node operation rewards: Users who participate in running Galactica network nodes can stake GNET and contribute network resources to earn GNET rewards.
• Governance: Although the whitepaper mentions a governance framework and “protocol citizenship,” the GNET token is likely to play a role in future decentralized governance, allowing holders to vote on the project’s direction.
• Reputation and incentives: GNET may be linked to users’ on-chain reputation system, or used as incentives for completing specific tasks.

Token Distribution and Unlock Information

Currently, public information does not provide detailed token allocation ratios or unlock schedules. What is known is that the project distributes GNET tokens through Node Sale, where participants purchase node operation rights to earn GNET rewards.

Team, Governance, and Funding

The success of a project depends on a strong team, effective governance, and sufficient funding.

Core Members and Team Features

Galactica.com’s core team members include:

• Mike Sarvodaya: Founder and CEO.
• Marc Berger: Founder and Advisor.
• Mikhail Tikhonov: Chief Product Officer (CPO).
• Alexander Kalen: Chief Growth Officer (CGO).

The team is characterized by its focus on Web3 identity, privacy protection, and compliance solutions, with a strong background in cryptography and blockchain technology.

Governance Mechanism

Galactica.com’s whitepaper mentions the concepts of “Galactica Governance Framework Design” and “Protocol Citizenship”. This indicates the project aims to establish a decentralized governance structure, allowing community members (“protocol citizens”) to participate in network decision-making. Such governance models typically use token voting to ensure the project’s long-term development aligns with community interests.

Treasury and Funding

Galactica.com was initially self-funded by its founders and private investors. Subsequently, through private investment and partnership with SwissBorg’s Alpha Vaults, the project successfully raised $8 million. This funding will support project development, operations, and ecosystem building.

Roadmap

The project’s roadmap shows its development history and future plans.

Key Historical Milestones and Events

• April 2022: Project officially launched.
• July 2023: DevNet (developer network) went live, introducing zkKYC functionality.
• March 2024: Testnet released for community and developer testing.
• May 2024: Alpha agreement reached with SwissBorg, deepening cooperation.

Future Key Plans and Milestones

• August 2024: Planned mainnet launch, meaning the network will be fully operational.
• August 2024: Token Generation Event (TGE), GNET token will be officially issued.
• October 2024: Node sale begins, allowing community members to purchase and run nodes, participate in network maintenance, and earn rewards.

Common Risk Reminders

Any blockchain project comes with risks, and Galactica.com is no exception. It’s crucial to understand these risks before participating in any project.

Technical and Security Risks

• Emerging technology risks: Galactica.com relies on advanced but complex cryptographic technologies like zero-knowledge proofs (ZKPs) and fully homomorphic encryption (FHE). These are difficult to implement and may have unknown vulnerabilities or performance bottlenecks.
• Smart contract risks: Although the project strives for security, any smart contract may have coding errors or vulnerabilities that, if exploited, could lead to loss of funds.
• Network attack risks: As a blockchain network, Galactica.com may face various attacks, such as 51% attacks (if decentralization is insufficient), DDoS attacks, etc.

Economic Risks

• Token price volatility: The price of GNET will be affected by market supply and demand, macroeconomic environment, project progress, and other factors, and may fluctuate sharply, posing investment risks.
• Market competition: The Web3 identity and privacy sector is highly competitive. Galactica.com needs continuous innovation and widespread adoption by users and developers to stand out.
• Adoption below expectations: Even with advanced technology, if the project fails to attract enough users and DApps, its ecosystem may not thrive, and token value may be affected.

Compliance and Operational Risks

• Regulatory changes: Although Galactica.com aims to address compliance issues, the global regulatory environment for blockchain and cryptocurrency is still evolving. Future policy changes may impact its operating model or the legal status of its token.
• Centralization risk: In the early stages, the team may have significant control. Achieving true decentralized governance as the project develops is key.
• Data privacy risk: Although the project emphasizes privacy protection, handling sensitive identity data inherently carries risk. Any data leak or misuse could seriously impact users.

Please note: The above risk reminders are not exhaustive and only cover common risk types. Be sure to conduct a comprehensive risk assessment before making any decisions.

Verification Checklist

For any blockchain project, here are some publicly available items you can check yourself to better understand the project.

• Block explorer contract address: According to CoinMarketCap, the GNET token contract address is
  0x690F...c6d5b7
  . You can check this address on Ethereum (or other relevant chains) block explorers to view token holder distribution, transaction history, etc.
• GitHub activity: Galactica.com maintains multiple code repositories on GitHub, including Galactica Node, ZK Monorepo, Guardian SDK, Cypherbook app, etc. Check these repositories for update frequency, code commits, and community contributions to gauge development activity.
• Official website: Visit Galactica.com’s official website for the latest project announcements, whitepaper, team introductions, and community links.
• Whitepaper: Read the project’s whitepaper carefully to understand its technical details, vision, and tokenomics.
• Community activity: Follow its activity on Twitter, Discord, Telegram, and other social media and community platforms to see hot topics and project team interactions.

Project Summary

Galactica.com (GNET) is an ambitious blockchain project dedicated to solving long-standing issues of identity, privacy, and compliance in the Web3 world. By introducing advanced cryptographic technologies such as zero-knowledge proofs (ZKPs) and fully homomorphic encryption (FHE), and the unique concept of the Identity Virtual Machine (IVM), it seeks to build a trustworthy, programmable on-chain digital identity and reputation system while protecting user privacy.

The project’s core vision is to create a “Cypher State”—a digital society that brings real-world social structures and financial activities onto the blockchain, and hopes to become a bridge connecting traditional finance and decentralized finance through its compliance solutions, promoting the tokenization of real-world assets (RWA). Its partnership with well-known institutions like SwissBorg also provides support for its development.

However, as an emerging project, Galactica.com also faces challenges such as technical implementation complexity, fierce market competition, and regulatory uncertainty. The differences in its L1/L2 architecture descriptions also warrant further attention. While the project shows great potential in Web3 identity and compliance, its ultimate success will depend on technology delivery, ecosystem building, and user adoption.

Remember, the above introduction is only an objective analysis and information summary of the Galactica.com project and does not constitute any investment advice. The blockchain and cryptocurrency market is highly volatile and risky. Before making any investment decisions, be sure to conduct thorough personal research (DYOR) and consult a professional financial advisor.