Ivy is Angular's next generation compiler and renderer that aims to make applications smaller, faster to load, and use less memory. Some key goals of Ivy include faster initial loading, reduced bundle sizes, lower memory footprint, improved memory allocation, and faster compilation times. Ivy generates template instructions directly from templates rather than generating intermediate metadata, making the compilation process more efficient. It also uses incremental DOM for rendering, which creates and updates DOM trees using in-place instructions rather than full virtual DOM comparisons on each change. Tree shaking also works more effectively with Ivy due to its generation of smaller, more atomic functions from templates.