Spacecoin Proposes Launching a Decentralized Blockchain Network in Outer Space

Spacecoin XYZ — a crypto satellite startup — has proposed a new method for launching an extra-terrestrial blockchain network that could enable a future “space economy” and even outlast humanity in the event of an apocalypse.

Spacecoin XYZ, a crypto satellite startup, has outlined a new method for launching an extra-terrestrial blockchain network in its Nov. 1 Blue Paper.

The startup envisions a future “space economy” enabled by the network, which could potentially outlast humanity in the event of an apocalypse.

Spacecoin proposes launching a decentralized physical infrastructure network (DePIN) using a fleet of nanosatellites in outer space, a move that co-founder Daniel Bar believes will lay the groundwork for the “native space economy” of the future.

In an interview with Cointelegraph, Bar expressed his concerns about the need to preserve the integrity of blockchain technology and its associated privacy and security measures beyond the confines of a single planet.

Highlighting SpaceX CEO Elon Musk's recent goal of sending humans to Mars within the next two years, Bar emphasized the importance of planning and building for a space economy now.

“So far, we have launched three satellites for an initial test with our infrastructure partner, Aptos Orbital,” he added.

According to Spacecoin adviser Dahlia Malki, several pressing factors necessitate the immediate construction of a blockchain network in outer space.

In an interview with Cointelegraph, Malki, who is also a professor of computer science at the University of California Santa Barbara, outlined a range of potential key use cases, including a commerce marketplace for “celestial services,” a secure co-processor for secret computation, and a hyper-secure data custodian.

Spacecoin primarily aims to establish itself as a space data center, offering levels of security that are simply not possible on Earth, Malki explained.

“You can think of it as a trusted hardware platform, which is really leakproof once you deploy it safely and securely. Nobody can tamper with the hardware on a satellite, not even us,” she said.

“We can bring down the satellite and crash it on Earth, but we cannot tamper with the hardware.”

Malki went on to discuss additional use cases, noting that Earth's orbit is already becoming “very busy” with the rapid increase in satellite-based services like Musk's Starlink, imaging, and communication providers.

“All of these services will benefit from having a platform that operates a marketplace so that they don’t have to communicate with Earth every time they need to run payments, micropayments, any kind of trade, any kind of enforceable agreements or contracts among them,” she said.

Malki explained that Spacecoin is proposing a novel, two-tier design, with a layer-1 network deployed in outer space and accompanying layer-2 state chains that are based here on Earth.

The off-world layer-1 is called the “Celestial Chain,” while the terrestrial layer-2 is called the “Uncelestial” network.

“The Celestial chain is the outermost authority. In the end, that’s the one that records an immutable history that may outlast our lives here on Earth at some point,” Malki explained.

“We anticipate and prepare for the case where occasionally satellites are in the dark and it takes a few seconds up to a few minutes initially to reach them. And so we’re building the Uncelestial layer here on Earth that hinges on the authority and the finality of L1 on space coin,” she added.

However, unlike current scaling solutions in the crypto ecosystem — rollups, domestic rollups, ZK-rollups — Malki said the team wants the Earth-based layer-2 to provide hard finality with fast latency.