Spacecoin Launches First Satellite for Decentralized Internet

Spacecoin has successfully launched its debut connectivity satellite, CTC-0, and established communication with it following a December 21 SpaceX Falcon 9 rideshare mission to low Earth orbit [1]. The launch marks the first step in the venture's plan to create a decentralized, space-based internet service, targeting the 2.6 billion people globally who lack internet access [1, 2].

The CTC-0 prototype, based on Bulgarian manufacturer Endurosat’s 8U model, will begin testing early next year to demonstrate space-enabled text messaging [1]. Spacecoin aims to eventually provide direct-to-smartphone connectivity using 5G NTN technology, eliminating the need for ground infrastructure like fiber-optic cables and cell towers [2]. The project spun out of Gluwa, a U.S.-based software firm specializing in blockchain-based financial services for emerging markets [1]. Spacecoin plans to use the Creditcoin blockchain platform to manage its satellite constellation, securely tracking operations and facilitating payments without a central authority [1, 2]. This decentralized approach, according to founder Tae Oh, would make the network more secure and censorship-resistant, allowing users to connect directly to content providers without third-party permission [1, 2].

Spacecoin CEO Stuart Gardner stated that anyone willing to invest in building and deploying at least one satellite can participate as a connectivity provider, earning a pro-rata share of revenues based on their satellites' usage [1]. The company plans to open-source its payload and technology designs to encourage participation from other satellite companies and manufacturers [1, 2]. Initial satellites will offer connectivity in the hundreds of kilobits per second range, suitable for text messaging and tracking devices, with future spacecraft designed for higher data rates to support voice calls [1]. Spacecoin estimates monthly internet costs could be as low as $1-2 per user in emerging markets by sharing infrastructure via blockchain protocols [1, 2]. Initial tests will take place in Nigeria, one of the first countries to allow the venture to test Mobile Satellite Services [1].

Spacecoin also faces competition from established global connectivity providers like Viasat and Iridium, as well as SpaceX, which is pursuing direct-to-smartphone connectivity in partnership with local telcos [1]. The company plans to launch a 16U satellite, CTC-1, next year, and transition to microsatellites for CTC-2 to boost performance [1]. Spacecoin co-founder Daniel Bar noted the satellite is equipped with "crypto engines" and a data module, forming the backbone of a blockchain network for enhanced security [3]. The company aims to launch seven to ten additional satellites by 2025 to activate its mainnet [3].