Galactica.com and SwissBorg: A New Era in Compliant Privacy
Key Points
- Galactica.com deploys a zero-knowledge KYC (zkKYC) technological stack, partnering with a regulated financial institution, SwissBorg.
- This marks the first production zkKYC integration between a permissionless blockchain protocol and a regulated financial institution.
- Users securely hold their data in self-custody, never exposing their private details on the blockchain. Instead, they verify themselves on the blockchain with zk-proofs.
- Galactica’s custom MetaMask Snap, the ‘Galactica ZK Vault,’ enables secure personal data management and storage.
- The zkKYC process ensures that users’ blockchain addresses are never disclosed to their data provider (SwissBorg in the case of our first KYCGuardian).
- Users publish the preferred data in a zkProof for on-chain identity verification derived from the zkCertificates generated by a guardian and stored on their local devices.
Galactica’s deployment of zkKYC technology, with SwissBorg as a KYC Guardian partner, empowers users to control their data and identity while engaging securely in digital ecosystems. Currently deployed on our DevNet, this initial phase sets the stage for the broader rollout of our pioneering zkKYC technology.
Here’s a detailed look at Galactica’s zkKYC initiative and its implementation by SwissBorg, outlined by the steps users will face upon implementation.
MetaMask Integration
The integration process begins with users connecting their MetaMask wallets to the Galactica network. This ensures that personal wallets are securely linked to SwissBorg’s system, powered by the Galactica Network. Users must then adjust permissions and switch to the Galactica DevNet, specifically set up for current testing phases but designed to adapt to future changes.
ZK Vault: Securing Personal Data
A significant component of Galactica’s zkKYC technology is the MetaMask Snap called the ZK Vault. After obtaining the necessary permissions, users install the ZK Vault, enabling them to manage and protect their sensitive personal data effectively.
This tool maintains your privacy and allows for the self-custody of your data in a decentralized manner — more wallets will become available over time, such as our recent integration with Keplr Wallet.
Privacy-Centric KYC Process
Users initiating the KYC procedure with SwissBorg generate a private commitment hash, ensuring that SwissBorg does not have access to the users’ on-chain addresses and information and maintaining strict data privacy.
Creation and Integration of zkKYC Certificates
Once the zkKYC process is complete, users generate a zkKYC certificate stored locally for security and data self-ownership. The certificate is then uploaded into the ZK Vault, ensuring seamless integration and secure identity verification processes.
The verification hash of the zkKYC is stored by the KYC Guardian, SwissBorg, in an on-chain Merkle tree. In the Zero-Knowledge Proof (ZKP), you verify the tree proof to ensure that a valid entry exists within this tree. Only the root of the Merkle tree is disclosed in the ZKP. Here is a breakdown of the process:
- The Merkle tree is maintained on-chain.
- The user generates a ZKP, which includes a leaf from this Merkle tree containing the verification hash of the KYC issued by the guardian.
- The ZKP verifies the correctness of the Merkle proof.
- The on-chain contract then ensures that the roots match, confirming the validity of the proof.
For the first time in cryptographic history, users can create and publish zero-knowledge proofs based on their verified KYC data, enabling secure and private identity verification on-chain. Beyond the user benefits, this is a huge step forward to addressing the regulatory challenges facing DeFi, as the ZK solution balances compliance, privacy, and decentralization.
- To learn more about the importance of zkKYC for DeFi, check out our article “zkKYC in Decentralized Finance (DeFi).”
- To learn more about the latest Testnet upgrade that advances the realm of zkKYC, check out our article “Decentralizing the Identity-Stack: Galactica Testnet’s Latest Upgrades in Zero Knowledge Certification.”
- For detailed tech specifications, read more here! https://galactica.com/zkkyc_tech_specification.pdf
- Check out this video for a deeper dive and visual explanation! https://www.youtube.com/watch?v=-x77L3UXwJU
