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Whitepaper 140619 COMMUNITY-BASED SPACE PLATFORM Disrupting the space industry: The SpaceChain Foundation provides efficient solutions in the space frontier as they are building the world’s first the world’s first open-source satellite network that runs on blockchain nodes. VERSION 1.2 Contents 1. Abstract 3 2. Limitations due to cost, resources and the government 4 3. The value of integrating blockchain and space 5 4. SpaceChain OS-powered smart satellites 6 5. A partnership with Qtum to leverage its technology 7 6. Constellation of satellites 8 7. Examples of use cases and applications 9 8. The SpaceChain ecosystem and community 11 9. Tokenomics – utility, usage and value 12 10. Summary 13 11. Executive team 14 12. Advisors 15 13. Partners 19 14. Affiliations 22 !2 Abstract The SpaceChain Foundation was founded in 2017 to pioneer solutions for humanity to thrive in the coming space age. Its project “SpaceChain” utilizes an open network based on blockchain technology to advance the principles of decentralization and promote international collaboration within the vibrant and global space community. As a non-profit community-based space platform, SpaceChain also looks after the interest of the space community by distributing funds, contributing resources, and supporting other space organizations to accelerate the pace of space exploration and development. The development of the SpaceChain Operating System (“SpaceChain OS”) has already been completed and adapted to the Sparc V8 satellite operating system. It has also achieved stable operations at the system level. Integrating Qtum blockchain technology, SpaceChain OS has established a platform for the development of space-based applications. In February 2018, SpaceChain released and launched its first SpaceChain OS blockchain node into space. By harnessing the power of tokens, private funding and leadership, SpaceChain provides an open-source platform for innovators around the world to maintain an opportunity to choose and execute projects that fit the blockchain-based philosophy to accelerate outer space development. !3 Limitations due to cost, resources and the government In 1962, former American president John F. Kennedy delivered a speech about the nation’s effort to reach the moon saying: “We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too.” Space exploration is essential for the advancement of humanity. Research and space discovery helps us learn more about the universe, enables the development of advanced technology and offers solutions to a variety of problems like predicting the weather. However, most space agencies are government owned or sponsored, making space exploration very closed off and niche. In addition, many private investors are hesitant about investing in space businesses because of its costly infrastructure and long timelines. And while commercialized space projects have braved through all the challenges, they are still tied to conventional economic models that may hamper their growth and success. All of these issues hinder space exploration and technology innovation. One of the biggest challenge that the blockchain industry may encounter in the next five to ten years is that most of the decentralized applications created are based on a centralized infrastructure. Once the decentralized applications gain popularity in the market, they may be seen as a threat to the centralized service providers, which may then shut them down at any time. To limit such risks, having a decentralized infrastructure becomes significantly necessary. However, setting such infrastructure on land can be very expensive and geographically challenging. Combining space and blockchain technologies, SpaceChain lowers the barrier to entry and costs so more people can participate in space projects. It also offers a truly decentralized blockchain network that supports various space projects and encourages collaboration. !4 The value of integrating blockchain and space Having the blockchain in space enables open-economic models that empower new projects, especially space-based ones. This is because blockchain at its core is about distributing access that was previously controlled by a third party. As such, SpaceChain provides hardware for its partners, companies and individuals to place blockchain nodes onto satellites so that everyone, not just the government and national space agencies, will have access to space and satellite technology. With more players and contributors in the space industry, collective intelligence will be optimized, thus creating more opportunities for collaborative workflows. Through the inherent collaborative nature of blockchain technology, SpaceChain establishes a socio-economic model that can support a globally shared and sustainable commercial space program. It also employs smart contracts through its decentralized platform built on satellite technology, thus enabling specialized personnel to work in a more inclusive setup. This reduces inefficiency and brings down the cost of space-based application development. Another highlight is SpaceChain's ability to bring an open-source software model to space. Imagine a physically untouchable data center in space with a higher level of security because the data center cannot be accessed on Earth. Physical remoteness is attractive to security-conscious customers. With a non- terrestrial network, SpaceChain has a better, more diverse set of nodes such as Internet, blockchain and other application nodes. Remote nodes operating in space offer network redundancy, satellite backup and autonomy of data and software. For example, autonomous software and software automation could allow users to communicate with sensors operating in the ocean that would advance climate change research. In addition, satellites can be used as Internet repeaters and remote sensors for telecommunications that enable the tracking of planes and ships around the globe – all powered on blockchain. !5 SpaceChain OS-powered smart satellites Satellites in space traditionally have a single owner and perform a single function. This is very stifling from a business prospective. However, the use of blockchain technology with the revolutionary SpaceChain OS changes this. Take for example your smart phone. It ships with a pre-installed OS that enables all kinds of applications to run. The smart phone also has a sandbox that keeps all the applications separated from one another. Similarly, SpaceChain has created smart hardware that can be installed onto satellites with SpaceChain OS. The universal space OS converts single-operator satellites into multi-tenant ones, while the blockchain provides a highly secure sandbox between multiple space applications. That way, users will be able to develop different types of space-based applications on a single satellite, maximizing the efficiency from this expensive resource. SpaceChain OS also enables compatibility between SpaceChain’s hardware and the various applications that the developers are developing and/or using. It acts as a bridge that lets both participants in the space arena and SpaceChain “speak” to each other in order to advance to the next stage. Developers can create applications using the environment provided by SpaceChain OS as it greatly lowers the difficulty of developing space applications while putting the resources, i.e. infrastructure, to best use. Best of all, this network is open-source. This means anyone, from an aerospace university student to a software developer, can write an application and load it onto a SpaceChain satellite network. This system of operation is more affordable compared to a decade ago where a single entity had to buy, operate and launch the entire satellite into space in order to develop space applications. The economics of this offers an ideal environment for many new use cases and endless possibilities. According to an annual report by the Satellite Industry Association (SIA), the satellite industry generated more than $260 billion in revenue in 2016. This was a 2% growth compared to 3% in 2015. Imagine the growth when this wealth can be redistributed to developers on a mesh network of a constellation of satellites. There are currently only six companies in the “large satellite” category and 16 in the “small satellite” observation category. With SpaceChain OS, satellite capabilities are increased, causing this sector to flourish alongside communication, and data storage and collection capabilities. !6 A partnership with Qtum to leverage its technology Unlike most internet companies, SpaceChain requires a lot of hardware which raises the issue of energy consumption. If the hardware consumes a lot of energy, there is less room for the project to grow. Therefore, SpaceChain chose to work with Qtum since it has one of the best Proof of Stake (PoS) smart contract platforms. Compared to the Proof of Work (PoW) algorithm, which tends to burns a lot of energy, Qtum’s PoS consensus mechanism consumes little energy and is very stable and secure, making it a more viable option. In fact, SpaceChain OS is developed on QTUM’s basic service application programming interface (API) to provide the main blockchain application sandbox. This provides developers all over the world with a platform to build and publish their
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