SpaceChain: The Decentralized Satellite Infrastructure Project

Spacechain decentralized satellite infrastructure project visual with orbiting satellites and Earth illuminated at night.

January 9, 2025
Dennis Frank
AI, Blockchain, Frank C, Learn
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SpaceChain is a pioneering company with a vision to build a collaborative, accessible, and decentralized satellite infrastructure for the global community. They aim to achieve this by integrating space and financial technologies, leveraging satellite platforms, and bringing security and accessibility to the space and fintech industry. This article provides a comprehensive overview of SpaceChain, covering its founders, their backgrounds, successful collaborations, white paper analysis, tokenomics, AI involvement, and its potential classification as a DePIN project.

About SpaceChain

SpaceChain is committed to operating within legal frameworks and has a legal team to ensure full compliance. They also have team members and partners in the US, UK, UAE, Israel, Singapore, and China who work with local governing bodies to ensure compliance with local regulations. SpaceChain emphasizes customer satisfaction and customizes solutions to meet their clients’ business goals and needs. Their success is measured by results and building strong relationships with their clients.

In addition to their main website, SpaceChain also has a dedicated UK website that provides information about the UK team’s technology development, partners, and the people behind the company. You can visit the UK website at http://spacechain.co.uk.

SpaceChain has also released a new white paper that provides an in-depth look at the intersection of space, security, and blockchain technology. You can download the white paper at http://spacechain.com.

Recently, the co-founders of SpaceChain, Jeff Garzik, Cliff Beek, and Zee Zheng, met in New York City to align on strategic objectives, refine business strategies, and discuss future plans. This in-person meeting underscored a unified vision for the organization, ensuring continued momentum in driving innovation and progress.

Team & Collaborations

SpaceChain was co-founded by Zee Zheng, Jeff Garzik, and Cliff Beek.

Zee Zheng: Co-Founder & Executive Chairman, Zheng has a strong background in the blockchain industry and a vision for integrating blockchain and space technologies.
Jeff Garzik: Co-Founder & Chief Technology Officer, Garzik is one of the original Bitcoin developers and brings his expertise in blockchain technology to SpaceChain.
Cliff Beek: Chief Executive Officer, Beek has extensive experience in the space industry and leads SpaceChain’s efforts in developing and deploying space-based blockchain solutions.

In addition to the co-founders, SpaceChain has expanded its team with new talent:

Shine: Earth Observation Scientist specializing in geospatial science and remote sensing. Based in New Zealand, Shine works with the R&D team on web applications using Earth observation data and its practical applications in agriculture, forestry, and smart cities.
Felix: Responsible for business development, marketing, and community management. Felix contributes to SpaceChain’s efforts in expanding its reach and engaging with the community.

These individuals bring a diverse range of expertise to SpaceChain, contributing to the company’s growth and development.

SpaceChain has collaborated with several organizations in the space and technology sectors, including:

SpaceBelt Telecom Services Co. KSA: SpaceChain secured a groundbreaking contract to develop, construct, and manage the mission for SpaceBelt’s LEO satellite capable of generating in-orbit encryption keys and distributing them securely to ground-based systems. This partnership positions SpaceChain as a leader in developing secure space-based communication systems.
GomSpace: GomSpace supplied the onboard computer for SpaceChain’s first multisignature blockchain transaction in space, demonstrating the capabilities of their hardware in supporting decentralized constellations in space.
Spire: SpaceChain partnered with Spire to demonstrate innovative ways to leverage outer space for decentralized blockchains, showcasing the potential of space-based computation across various industries and use cases.
Eurasian Space Ventures: SpaceChain collaborated with Eurasian Space Ventures to showcase Kazakhstan as an international space hub, highlighting the growing importance of space exploration in emerging markets.
Nvidia: SpaceChain joined Nvidia’s Inception Program to access resources for developing its AI-powered Earth observation service, I-Sat.
Google for Startups: SpaceChain joined Google for Startups to access resources for its AI-powered Earth observation service, I-Sat.
European Space Agency (ESA): SpaceChain received funding from ESA for a project involving a payload to the International Space Station (ISS), demonstrating their ability to secure support from established space agencies.

SpaceChain believes that space exploration requires cooperation and benign competition. They are always looking for interesting partnerships and are open to collaborating with anyone who wants to explore the possibilities of space and blockchain technologies. These collaborations and partnerships demonstrate SpaceChain’s commitment to building a collaborative ecosystem for the New Space Economy. They have also received strong testimonials and referrals from industry leaders, further strengthening their credibility and positive perception within the space industry.

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White Paper Analysis

SpaceChain’s white paper outlines its vision, goals, technology, and roadmap.

Goals:

Democratize access to space: SpaceChain aims to make space accessible to all by reducing the barriers to entry and fostering collaboration.
Decentralize satellite infrastructure: SpaceChain envisions a decentralized network of satellites that can be used for a variety of applications.
Improve security and accessibility: SpaceChain aims to enhance the security and accessibility of space and fintech industries by leveraging blockchain technology.

Technology:

Decentralized Satellite Infrastructure (DSI): SpaceChain has developed a DSI to facilitate communication and collaboration between satellites, enabling the effective pooling of resources and improving access to Earth Observation data and secure transactions across the globe.
Open-source software: SpaceChain utilizes open-source software to promote transparency and community involvement.
Blockchain technology: SpaceChain leverages blockchain technology for security, transparency, and decentralized governance.
SpaceChain OS: This operating system enables a realistic network in space by addressing the issues related to the aerospace industry, such as the lack of a democratic space cooperation alliance and an imbalance between government and commercial enterprises.
Three-Dimensional Ledger Architecture: This architecture, with its novel data structures, deals with the heterogeneity and scalability of IoT networks in space.
3D-GHOST Consensus Mechanism: This consensus mechanism improves security and network performance for SpaceChain.
Hardware components: SpaceChain develops and integrates various hardware components, including blockchain nodes and satellite payloads.
Tethys: A handheld satellite mobile device that enables users to perform highly secure cryptocurrency transactions easily and quickly at any time and from anywhere in the world.
Space-based Key Management System: This system secures cloud services and data with its advanced key management capabilities, ensuring uncompromising protection for cryptographic keys and data integrity.
Space Mission Design & Management: SpaceChain offers space mission design and management services, customizing solutions for companies, such as launching nodes, deploying smart contracts, and enhancing their cybersecurity capabilities using space technology.

Roadmap:

Infographic titled 'Key Milestones in SpaceChain's Development,' featuring milestones including the foundation of SpaceChain in 2017, launch of the first blockchain node in space in 2018, open-hardware innovation with the Callisto board in 2021, Velas satellite launches in 2022, and planned service expansions in 2024. Accompanied by illustrative icons of rockets, satellites, and space modules. — Explore the timeline of SpaceChain’s key achievements, from integrating blockchain technology with space applications to expanding satellite services.

SpaceChain has made significant progress in its roadmap, achieving key milestones in a relatively short period. They have conducted seven launches and currently have two operational nodes on satellites and a further three on NASA’s International Space Station (ISS). This progress is considered fast in the space industry, which typically requires extensive preparation and overhead costs.

Challenges:

One of the main challenges faced by SpaceChain is coordinating resources and managing expectations between the space and blockchain industries. The space industry is generally slow and traditional, while the blockchain industry grows very rapidly. Balancing these two different paces and coordinating resources effectively has been a challenge for SpaceChain.

Tokenomics

SpaceChain has its own cryptocurrency token, SPC, which is designed to facilitate the use of its decentralized satellite infrastructure.

Token Distribution: 51% of the tokens are released to the community, promoting decentralization and community ownership. This decision reflects SpaceChain’s commitment to creating a decentralized ecosystem where the community plays a significant role in the network’s governance and development.
Market Data: As of January 4, 2025, the market capitalization of SPC is $15,036,973.39, with a circulating supply of 307,182,730.00 SPC.
Exchanges: SPC is listed on several exchanges, including Uniswap v3 and SushiSwap, where users can buy or trade the token.
Price History: The price of SPC has fluctuated over time. As of January 4, 2025, the price is $0.0499, representing a 9.17% increase from the previous day.
One-way peg: SpaceChain’s tokenomics involve the concept of a one-way peg, where users can burn their Bitcoin on the main chain to claim an SPC token on the sidechain, but they cannot transport that back to the main chain. This mechanism creates an arbitrage opportunity and ensures that the SPC token’s value is linked to Bitcoin’s value.
Use Cases: SPC tokens are used for various purposes within the SpaceChain ecosystem, including:

Paying for satellite services, such as data storage and processing.
Participating in governance decisions related to the SpaceChain network.
Accessing premium features and services within the SpaceChain platform.

AI Involvement

SpaceChain is actively exploring the integration of Artificial Intelligence (AI) with its space-based services.

I-Sat: SpaceChain’s U.S.-based SC Solutions developed I-Sat, an AI-powered service that integrates AI with Earth imagery to provide insights and answer questions related to Earth observation data.
Natural Language Processing: I-Sat utilizes natural language processing technology to understand user queries and provide relevant answers. This is facilitated by a generative AI tool that allows users to interact with a chatbot to receive accurate analysis and explanations.
Real-time Data Analytics: I-Sat combines AI with real-time data analytics to provide accurate and up-to-date information.
Pilot Projects: SC Solutions conducted pilot projects using I-Sat in the paper, pulp, and sugarcane industries in Brazil, demonstrating the potential of AI in analyzing satellite imagery for various applications.

Applications and Use Cases

SpaceChain’s technology has the potential to unlock various Bitcoin use cases in space. By integrating blockchain technology with satellite infrastructure, SpaceChain can enable secure and transparent transactions for space-related activities, such as:

Satellite data management: Securely storing and transmitting data collected by satellites.
Spacecraft financing: Facilitating crowdfunding and investment in space missions.
Supply chain management for space resources: Tracking and managing the movement of resources in space.
Decentralized space exploration: Enabling collaborative and community-driven space exploration initiatives.

These use cases demonstrate the potential of SpaceChain’s technology to expand the applications of Bitcoin and blockchain technology in the space industry.

DePIN Classification

While SpaceChain shares some characteristics with DePIN projects, it does not strictly fit the definition.

DePIN, or Decentralized Physical Infrastructure Networks, are blockchain-based systems designed to manage and govern physical infrastructure assets in a decentralized manner. They enable community-driven ownership and operation through blockchain technology, smart contracts, and tokenization, ensuring transparency, security, and fairness in managing resources. DePIN projects are revolutionizing infrastructure by creating more transparent, efficient, and resilient systems, aligning with the core principles of Web3.

Examples of DePIN projects include energy grids, wireless networks, and decentralized data storage systems. DePIN extends the principles of the sharing economy, similar to platforms like Uber and Airbnb, but decentralizes ownership and control. For example, DePIN can be used for decentralized storage solutions, where data is spread across multiple nodes to enhance security and reliability. Projects like Filecoin utilize this approach. DePIN can also be used for wireless connectivity, where devices communicate directly with each other in a peer-to-peer network.

While SpaceChain promotes the decentralization of satellite infrastructure and utilizes blockchain technology for security and governance, its primary focus is on building and managing space infrastructure. This differs from typical DePIN projects that focus on broader physical infrastructure networks.

Community Activities

SpaceChain actively engages with its community through various activities. They have hosted AMAs (Ask Me Anything) on their Discord channel, where users can ask questions directly to the executive team. This provides a platform for open communication and feedback between SpaceChain and its community.

News & Reviews

SpaceChain has been featured in various news articles and reviews, highlighting its innovative technology and contributions to the space industry. CEO Cliff Beek participated in the New York Space Business Roundtable, where he discussed how cryptocurrencies fit into space financing. This highlights SpaceChain’s thought leadership in the space industry and its efforts to promote the use of blockchain technology in space exploration.

SpaceChain also published its Year in Review 2022, which compiled the year’s notable highlights and achievements. You can access the Year in Review documents here.

Conclusion

SpaceChain is a groundbreaking project that combines space and blockchain technologies to create a more accessible and decentralized space infrastructure. With its experienced founders, successful collaborations, and innovative technology, SpaceChain is poised to play a significant role in the New Space Economy. As CEO Cliff Beek stated in his message, SpaceChain’s mission extends beyond technological progress; it’s about reshaping the boundaries of possibility as humanity continues to explore the cosmos.

SpaceChain’s commitment to decentralization is a core value that drives its development and operations. By decentralizing satellite infrastructure, SpaceChain aims to improve security, accessibility, and resilience in the space industry. Their innovative approach in bridging the gap between space and blockchain technologies has the potential to revolutionize the space industry and create new possibilities for space exploration and utilization.

SpaceChain is also at the forefront of integrating AI into space exploration. Their AI-powered service, I-Sat, demonstrates the potential of AI in analyzing Earth observation data and providing valuable insights for various applications. This technology has far-reaching implications for improving satellite operations, enabling autonomous space missions, and enhancing our understanding of Earth and the cosmos.

SpaceChain’s technology and partnerships are contributing to the growth and development of the New Space Economy. By promoting accessibility, collaboration, and innovation, SpaceChain is shaping the future of space exploration and creating new opportunities for businesses, researchers, and individuals to participate in the space industry.

While SpaceChain may not strictly qualify as a DePIN project, its focus on decentralization and blockchain integration aligns with the broader DePIN movement. As SpaceChain continues to develop and deploy its technology, it will be interesting to see how it further contributes to the evolution of decentralized infrastructure and the future of space exploration. The company’s roadmap and recent developments suggest a promising future, with potential for expanding its services, launching new satellites, and further integrating blockchain and AI technologies in its operations.

SpaceChain faces challenges in coordinating resources and managing expectations between the space and blockchain industries. However, their commitment to customer satisfaction, strong partnerships, and continuous innovation position them well to overcome these challenges and achieve their ambitious goals. SpaceChain’s journey is a testament to the power of collaboration, technological advancement, and a shared vision for a more accessible and decentralized future in space.