Is Space the Key to Bitcoin's Future?

Frank Jordans/AP

A satellite-based plan to broadcast bitcoin data could make the digital currency safer and more accessible, advocates say.

If you think "bitcoin from space" sounds like a sci-fi Mad Lib result, you're probably not alone.

But Jeff Garzik, who runs a one-man show known as Dunvegan Space Systems, doesn't think his plan is far-fetched. A few inexpensive satellites, he says, could provide fail-safe protection for the network bitcoin users rely on, as well as providing access to bitcoin in areas that lack reliable Internet.

As long as supporters get him enough funding, he's convinced his satellites will soon be spreading the bitcoin gospel around the world.

So why is this plan important, and, more importantly, can it work?

First, we have to understand how bitcoin works. All bitcoin transactions (purchases made with the virtual currency) are registered in what's known as a blockchain—a constantly-updated ledger that runs through a network of several thousand computers. Those machines provide the information that all bitcoin users rely on to maintain their accounts, as well as to send and receive transactions.

Without access to a that network, users are cut off from their bitcoin wallet—and the spending power it contains.

Garzik's plan aims to expand the coverage area to places where the current lack of Internet access also cripples potential bitcoin development—including much of the developing world.

"Outside Western nations, [a satellite data provider] greatly reduces the cost of access to the bitcoin network," he said. "If you're in Africa or just on a mobile Internet connection where bandwidth is expensive, having a free source of bitcoin bandwidth reduces your cost."

As a decentralized currency, bitcoin lacks many of the transaction fees and regulations that accompany other forms of money—which Garzik describes as a "democratizing effect." International data access could make bitcoin universal, which backers think would speed its growth and acceptance.

Beyond expanding bitcoin's reach, Garzik also wants to protect current users.

Presently, users are at risk from denial-of-service attacks, which have already halted bitcoin transactions at times. In such attacks, hackers target bitcoin programs with an overload of communication requests, rendering them unable to perform their essential tasks.

Garzik thinks his satellites could circumvent that, offering a backup source of bitcoin data in case ground-based systems get compromised or blocked. "It functions as a backup," he said, "providing alternative means for transmitting the blockchain."

Of course, Garzik's fail-safe-in-the-sky will need to be connected to the ground to get the most updated information.

As the satellites orbit the Earth, upload stations will send them the latest transactions—the blockchain "tail"—which they will then update and rebroadcast around the world. Garzik estimates 10 such stations will have to be installed to achieve 90 percent contact with satellites.

Of course, the essential component is the satellites themselves. Garzik plans to use so-called cubesats, toaster-oven-sized satellites than can be launched for as low as $100,000. The satellites' lifespan is short—one to two years at best—which has led some critics to say the plan would require constant reinvestment just to stay operational.

But Garzik says the microsatellites are the easiest path to orbital access.

Because of their universal size (10-by-10-by-10 centimeters), cubesats can be deployed en masse from a launcher known as a P-POD. When a rocket launches its primary payload, it can also release a P-POD of up to three cubesats.

For now, that remains the most low-cost route to orbit.

A single satellite, Garzik said, could be launched for around $2 million and provide bitcoin data updates for users every 90 minutes. For $5 million, he says he can launch eight cubesats, which would be more than enough to give regular updates.

His launch plans will depend on the amount of fundraising he receives, and he hopes to start campaigning in August. The earliest his satellites would launch is August of 2015, he said.

But it might be a little longer than that before they get off the ground. Launch prices have dropped drastically over time, and Garzik admitted that "you pay more to launch sooner."

Even if the fundraising comes through, establishing 10 upload stations around the world won't be an easy task. In addition to the infrastructure hurdles, Garzik will have to find a transmission method that meets several countries' frequency regulations. Governments have come up with different approaches to allocate in-demand radio spectrum, and navigating various international agencies to establish a universal, globe-spanning network could prove a complicated task.

And even if his satellites are launched, Garzik will have to keep fundraising to buy near-yearly replacements for the short-term cubesats. Still, he's convinced his project will succeed—and revolutionize both online currency and orbital technology.

"The wider you spread the bitcoin block data, the more resilient is bitcoin as a whole," he said. "This is for the bitcoin community, but it's also intending to provide a high-profile project that really incentivizes others to look at cubesat designs."

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.