Spacecoin XYZ wants to launch the first blockchain network in space

Crypto startup Spacecoin XYZ announced plans to launch the first blockchain network in outer space using a fleet of nanosatellites.

According to a Spacecoin XYZ’s whitepaper published on Nov. 1, the blockchain system will benefit from an Iridium distributed network of satellites. Spacecoin explained that satellites are more resistant towards DoS attacks and censorship attempts compared to networks based on earth.

“Spacecoin nodes run within satellite-cubes in orbit that are physically tamper-proof by any administrator or powerful actor and do not suffer from side-channel leaks that are prevalent here on Earth,” wrote the authors of the Spacecoin XYZ whitepaper.

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 cube satellites to take part in Spacecoin’s operation.

For now, the authors claim that the Spacecoin system is not tamper-proof yet, as they would have to rely on Iridium terminals in order to communicate and utilize Spacecoin from Earth. The Iridium terminal, is an interface which allows users to connect to satellite constellations from earth, establishing a global communication network.

The whitepaper states that Iridium terminals are still vulnerable to attacks and might effectively cause Spacecoin to become unusable. Though in the future, they plan to employ direct consumer device communication to satellites without having to rely on third parties.

The authors cite two potential uses for the Spacecoin blockchain. The first one being Spacecoin as a celestial commerce marketplace. According to the whitepaper, Spacecoin is able to facilitate payments and other market infrastructure tools to serve other applications running in orbit.

Additionally, it will very rarely have to communicate with Earth as it will be considered one of the “celestial applications.”

“We want to employ a blockchain for such a marketplace in orbit for several reasons. The first is that
smart contracts enable software upgrades and customization while making all changes transparent. This
allows the platform to evolve while deterring and detecting any rogue software updates,” said the authors.

The second use for Spacecoin would be to provide security services. Because of the blockchain’s tamper-proof nature, the decentralized platform will be expected to safeguard sensitive information such as data compliance and trade secrets.

“In many cases, decentralized applications and services can utilize Spacecoin to implement critical security components, taking security to new heights with tamper-proof guarantees,” the authors explained.

Although a potential launch date has not been revealed, the team stated that the purpose of building this extraterrestrial blockchain is to eliminate dependency on Earth-based intermediaries and continue to improve on the performance of Layer1 technology.