The blockchain technology was originally designed to make financial transactions with cryptocurrencies (firstly for Bitcoin) feasible and more secure.

In a nutshell, blockchain is like a digital ledger which records permanently information of events between users. Each event or transaction is defined as a block, which is connected inside a network, hence, blockchain.

What makes blockchain so transparent and safe?

It is decentralized, so everyone in the network can get access to all transactions from any computer and reach a consensus that validates the transactions being performed.

Also, changing or removing a block is very difficult as doing so compromises the whole system and involves solving complex calculations, while owning more than half of the network to make the alterations needed in a block - this is the so-called ‘proof of work’ mechanism.

An upgrade of this technology was the introduction of ‘smart contracts’, which establish requisites that allow an action to occur when these predefined conditions are met. Another advantage of this technology is that it saves costs and time by cutting intermediaries between parties, for example banks or lawyers.

Soon, the blockchain technology started being applied for other uses and industries, such as keeping medical history records or tax collection purposes.

Where can we use it in space?

In the Space industry, several new organisations have taken great interest in the opportunity of implementing this technology in satellites for multiple purposes.

Combining the low-cost, decentralized and trustworthy encrypted system from the blockchain, with the high intelligence and autonomous communication between constellations of satellites, we get a powerful tool to manage Space data.

Among the incumbents, NASA is planning to use blockchain for enhanced satellite data collection and processing, as well as, to automatize operations for space exploration missions. Also, SpaceX aims to develop a huge constellation of broadband LEO satellites, around 4 425 of them, which, with blockchain, will create a consistent and automated network to provide internet for everyone worldwide.

These initiatives will bring superior automation in inter-satellite communication and operations during missions, making mission intermediaries, i.e. satellite operators, progressively less needed.

Other new organisations saw opportunity in bringing cryptocurrency transactions to Space, such as Spacechain, Qtum, Blockstream, Vector and Nexus, while tackling government's’ regulation issues.

Spacechain is already leading the way with its first satellite using blockchain in February 2018 and planning to further extend this initiative by launching two additional satellites this year. Beyond financial transactions with digital currencies in Space, their vision involves innovating and revolutionizing the industry through the creation of an “open-source problem-solving model that optimises collective intelligence”, as stated by Spacechain’s CEO and co-founder, Zheng Zuo.

Article written by Teresa Duarte @ VisionSpace