Crypto startup Spacecoin XYZ has announced plans to launch the first blockchain network in space using a fleet of nanosatellites.
According to a Spacecoin XYZ white paper published on November 1, the blockchain system will benefit from a distributed Iridium satellite network. Spacecoin explained that satellites are more resistant to DoS attacks and censorship attempts than Earth-based networks.
“Spacecoin nodes operate in orbiting satellite cubes that are physically tamper-proof by any administrator or powerful actor and do not suffer from the side-channel leaks prevalent here on Earth,” the authors of the Spacecoin XYZ white paper wrote.
Spacecoin will be operated by a network of nodes deployed on cube satellites and governed by separate administrative entities, making it completely decentralized. In some cases, entities will be able to fully control and launch their own cubic satellites to participate in Spacecoin operations.
For now, the authors claim that the Spacecoin system is not yet tamper-proof, as they would have to rely on Iridium terminals to communicate and use Spacecoin from Earth. The Iridium Terminal is an interface that allows users to connect to satellite constellations from Earth, establishing a global communications network.
The white paper states that Iridium terminals are still vulnerable to attacks and could effectively render Spacecoin unusable. However, in the future, they plan to use direct communication of consumer devices with satellites without the need for third parties.
The authors cite two potential uses for the Spacecoin blockchain. The first being Spacecoin as a celestial trading market. According to the white paper, Spacecoin is able to facilitate payments and other market infrastructure tools to serve other applications running in orbit.
Additionally, it will very rarely need to communicate with Earth as it will be considered one of the “celestial applications”.
“We want to use a blockchain for such an orbiting market for several reasons. The first is that
Smart contracts enable software upgrades and customizations while making all changes transparent. This
allows the platform to evolve while deterring and detecting any malicious software updates,” the authors said.
The second use of Spacecoin would be to provide security services. Due to the tamper-proof nature of blockchain, the decentralized platform will need to protect sensitive information such as data compliance and trade secrets.
“In many cases, decentralized applications and services can use Spacecoin to implement critical security components, taking security to new heights with tamper-proof guarantees,” the authors explained.
While no potential launch date has been revealed, the team said the goal of building this extraterrestrial blockchain is to eliminate reliance on Earth-based intermediaries and continue to improve the performance of Layer1 technology.
