Spacecoin XYZ unveils plans for first-ever 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.

In its Nov. 1 Blue Paper, Spacecoin outlines a new way to launch a decentralized physical infrastructure network (DePIN) using a fleet of nanosatellites in outer space — something its co-founder Daniel Bar told Cointelegraph will lay the groundwork for the “native space economy” of the future. 

Bar envisions a future where satellites and soon-to-be space-faring humans can utilize a blockchain network as an interstellar marketplace and application layer.

He explains the crucial need for humans to preserve the integrity of blockchain technology — and the privacy and security that come along with it — in a way that it isn’t limited to one single planet. 

“In the undesirable case that we have some kind of nuclear conflict or armageddon scenario, it’s important to safeguard the future of blockchains — or more generally free market capitalism — as a layer that can potentially outlast any state actors that try to attack it.”

While it may seem like a lofty goal right now, a space economy needs to be planned for and built right now, said Bar — noting SpaceX CEO Elon Musk’s recently espoused goal of sending humans to Mars in the next two years. Bar added:

“We’re laying the foundations for what we believe will become, the expansion of the free market economy into much further beyond the bounds of planet Earth.”

So far, Spacecoin has launched three satellites for initial testing with their infrastructure partner, Aptos Orbital. 

Why launch DePIN in outer space? 

Outside of introducing an armageddon-proof space economy, there are several pressing reasons why building a blockchain network in outer space is crucial for right now, Spacecoin adviser Dahlia Malki told Cointelegraph.

Malki — a professor of computer science at the University of California Santa Barbara — outlined a suite 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.

Right now, the primary goal of Spacecoin is to build itself out as a space data center, offering levels of security that simply aren’t possible here on Earth. 

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

“This addresses many of the security vulnerabilities here on Earth that even trusted hardware platforms like Intel SGX and other companies don’t have an answer for.”

Speaking of additional use cases, Malki added that Earth’s orbit was already getting “very busy” — noting the rapid uptick in satellite-based services such as 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,” Malki said.

“To do this properly, you need a decentralized infrastructure that nobody controls.”

How does Spacecoin work?

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

Related: Decentralized network Uplink tops 40K routers, targets lower internet costs

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.

But 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.

Disclaimer: Spacecoin XYZ is not to be confused with an unaffiliated project called Spacecoin.org.

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