Is it possible to extend the cryptonet via satellite? –


The answer is yes if satellites help expand crypto networks. As we will learn here, satellite projects are already in use today, offering reliable but limited alternatives to internet service providers. Projects that allow the propagation of data from public and dedicated satellites to users on earth are also sufficient. Different customizations are required for a satellite dish to receive data. Finally, we look at the benefits of having such a strong option for accessing and interacting with blockchain resources. But first;

Examples of Crypto Satellite projects launched

Previous satellite-based crypto projects relied on commercial communications satellites from which they leased propagation frequencies. Projects include:


Blockstream is an example of commercial satellite broadcast bandwidth through unique frequencies granted to crypto providers to meet their needs. Blockstream uses the frequencies when transmitting signals carrying encoded blocks and transactions from the ground station as fed by the cryptographic entity.

The data then bounces from the space satellite to a user’s terrestrial antenna, where the decryption occurs. The project restricts user access to only block and transaction updates when they already have the initial data in place. It is only useful for acquiring real-time changes that occur on the blockchain without allowing participation in validation processes until you pay.


Another example is the dedicated Crypto1 satellite recently launched by the crypto agency Cryptosat using rockets from the famous company SpaceX. The deliberate launch of such a project dedicated to crypto players to use satellites for block validation and transactions communicates an intention of diversification. Networks use satellite without relieving it of a commercial communications entity, limiting bandwidth frequencies.

Additionally, the futurist supports zero-knowledge proof protocols, which allow verification of blocks and transactions without revealing details of validated content. When voting on major investment decisions, the feature will be a popular feature in Decentralized Autonomous Organizations (DAOs).

How Do Satellites Work When Propagating Blockchain Content?

A few steps and measures need to be in place before users start enjoying unlimited access to crypto resources. They are:

Frequency allocation

The block and transaction propagation channel is reserved based on the bandwidth needed to satisfy network traffic. All signals from the source to the orbiting satellite must be trimmed to fit within the specified range before propagation occurs. Each network leases a unique frequency with which its blockchain data is transmitted.

Signal collection

The frequency-specific signal bounces off the satellite to the ground, where users set up satellite dishes to collect what they need. Here, the user must first use a digital satellite finder to determine the direction of the incoming signal from the specific satellite.

Once the signal lands on the dish, it encounters a special low-noise block (LNB) transceiver, which filters out signals within the desired range. It then converts the signal from analog formats to computer-readable digital formats. The signal then travels to the next destination via coaxial cable, the other purchase of which is to load the LNB.

Signal decoding

The LNB transmits the digital signal to a software defined radio (SDR) USB dongle connected to your computer node. The dongle decodes the signal before sending it to your computer, where appropriate software transforms it into blockchain data understandable to a user. The programmable user application interfaces (APIs) offered by the network allow interactive access to blocks and transaction data used.

Benefits of using satellite for encryption services

Here are some facts explaining why the use of satellites to extend crypto networks is a great strategy:

User privacy and security

The user node is a passive blockchain data receiver with minimal contribution to bandwidth usage, making it anonymous. Here, the user’s IP address remains hidden from peers on the network unlike the case of internet-connected devices. Other players cannot monitor your blockchain activity, especially in regions where censorship poses risks to investors.

Global reach

The entry of satellites into the crypto game is a game changer for the entire market by creating optimal global coverage. The Internet offer encounters shortcomings such as geographical landscapes unfavorable to the installation of data cables in different places.

However, commercial satellites have a footprint in most places except Antarctica and Greenland, which are too far away. The introduction of new PoS validation algorithms as networks move away from power-hungry PoW protocols opens up these remote locations to mining pools.

Management of network splits

Network splits occur when part of the total network hash rate is cut off due to internet outage within large mining pools. Network-agnostic satellite channels allow nodes here to communicate with the rest of the network to temporarily suspend block and transaction validation.


The article shows that satellites are now an important part of the success of crypto networks with more test project launches. Among the benefits is the creation of global participation in the mining and crypto trades by people in areas with low internet reach.

This fact coincides with the expected departure of blockchain networks from high-energy PoW protocols. Many regions will have visible contributions to network activities, unlike past scenarios where mining deposits were concentrated in areas with huge reserves of fossil fuels for mining.

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