Can Galxe (GAL) make money from Web3 Credentials?

Galxe (GAL) is an effort to profit from digital identities. To explain, Galaxe is a credential infrastructure that organizations can use to identify customers in Web3.

For example, a lender can use a Galxe Web3 credential to verify a borrower’s identity and income. Similarly, a game can use a Web3 credential to verify players’ identities.

A use of Galxe Web3’s credentials is Twitter Space Promoters, which allows users to win an exclusive non-fungible token by filling out a Google Form. Another example of a Web3 credential is CyberConnect, which identifies non empty addresses (customers who pay transaction fees) on the Solana blockchain. Hence, CyberConnect tries to identify paying customers.

Meanwhile, Galxe Brain identifies community leaders in Project Galaxy. Plus, Melosians, the Music NFT Diamond Hands identifies and rewards people who make purchases on the Melos Marketplace.

Galxe operates an ecosystem that hosts Web3 credentials that developers build. They make the credentials available in a marketplace.

What are Web3 Credentials?

Galxe (GAL) offers two kinds of Web3 credentials. A Galxe Profile and a Galxe Passport.

They call the Galxe Passport your “universal identity for Web3 adventures.” They claim the Galxe Passport gives Web3 users total control over and ownership of their data. For example, they protect the Galxe Passport with encryption and password protection.

In exchange, the Galxe Passport provides access to many Web3 destinations, including games, metaverses, FinTech solutions, and e-commerce platforms. Galxe Passport holders can choose which platforms get their data.

Platforms adopt by the Galxe Passport by integrating the Galxe ID software development kit (SDK) into their systems. They claim, Galxe never divulges Galxe Passport Holders’ information to authorities. However, authorities could force Galxe to turn over that data with a warrant.

Companies can require participants in campaigns to have a Galxe Passport credential. Theoretically, a decentralized autonomous organization (DAO) could use the Galaxy Passport to determine if users are real people.

Users can mint a Galxe Passport on Galxe’s website.

How Developers can use the Galxe Web3 Credentials

Developers can use the Galxe Web3 Credentials through Application Modules, the Galxe Credential Oracle, and the Galxe Credential API.

Applications Modules such as the Galxe OAT (On-Chain Achievement Token) distribute NFT badges that validate users. Users can mint Galaxe OATs without paying Ethereum gas fees.

Another Applications Module the Galxe NFT. Allows users to create gamified NFT campaigns to reward customers. For example, users can build Single Drop NFTs as rewards. They can also build Mystery Box Campaigns based on probability and a capped pool of NFTs. The Galxe NFT can also Dynamic Loyalty Points and credential NFT loyalty cards with on-chain loyalty points.

The Galxe Vote allows users to leverage credentials and credential-based NFTs on Snapshot for blockchain governance. The Galxe ID Web3 profile showcases credentials, OATs, and NFTs.

The Galxe Credential API and Credential Oracle

The Galxe Credential API (application programming interface) allows multiple blockchain platforms to accept Galxe IDs. Users can build on-chain resumes, guilds, voting infrastructure, and allow lists for uses in the Credential API.

The Credential Oracle allows developers to add credit scoring, Sybil (false identity) Attack Prevention Algorithms and Mining Boosts to their platforms with Galxe. For example, an e-commerce platform can resist Sybil attacks by requiring all users to have a Galxe passport.

Galxe creates both On-Chain credentials, such as Subgraph Queries and Snaphots and Off-Chain Credential. Galxe Off-Chain Credentials include Twitter, Discord, GitHub, and Online Events permissions. For example, a platform can reward users over both Twitter and Discord.

One use of Galxe Credentials is offering rewards through multiple blockchains. For example, to offer both Ethereum (ETH) and Binance (BNB) rewards at the same time.

What Value does Galxe (GAL) Offer?

Mr. Market thinks Galxe (GAL) offers some value. For example, CoinMarketCap named Galxe as the most trending cryptocurrency on 29 October 2022.

However, CoinMarketCap named Galxe (GAL) as the 284thd ranked cryptocurrency on 31 October 2022. On that day, CoinMarketCap gave Galxe a $2.12 Coin Price, a $74.726 million Market Capitalization, a $425.923 million Fully Diluted Market Cap, a $26.792 million 24-Hour Market Volume, a $26.738 million Centralized Exchange (CEX) Volume, and a $54,129.46 Decentralized Exchange (DEX) volume on 29 October 2022. They base those numbers on a Circulating Supply of 35.161 million GAL and a Total Supply of 200 million GAL.

Conversely, CoinGecko named Galxe, its 301st ranked cryptocurrency with a $2.13 Coin Price on 31 October 2022. CoinGecko gave Galxe an $78.192 million Market Cap, and a 24-Hour Trading Volume of $21.682 million on 31 October 2022. They base those numbers on a 36.675 million GAL Circulating Supply and a 200 million GAL Total Supply.

What Value could Galxe Obtain?

I think demand for Galxe’s Web3 credentials could be high because of threats such as Sybil Attacks.

A Sybil Attack uses many fake identities to invade a blockchain. In the worst-case scenario, a Sybil attack can create many false nodes that can seize control of a blockchain platform. They named Sybil attacks for the 1976 movie Sybil, in which Sally Field plays a woman with multiple personalities.

For example, a 51% Sybil attack enables fraudsters to control a decentralized autonomous organization (DAO). The Sybil Attacker can then vote to send all the DAO’s money to the fraudsters.

In August 2021, a Sybil Attack let fake miners double spend coins minted by BitcoinSV. Also in 2021, another Sybil Attack deleted 200 days’ worth of transactions from the Verge wallet.

I think threats like Sybil Attacks will drive the demand for Galxe’s Web3 Credentials. As Web3 use increases, I predict Web3 identity theft will spread growing demand for solutions such as Galxe. Speculators need to investigate Galxe because it could profit from identity theft and Sybil attacks.