Stock Analysis & Ideas

Cryptosat to Send “Crypto-Satellites” into Earth’s Orbit

Story Highlights

Cryptosat secured $3 Million in seed funding to accelerate the development of proprietary crypto-satellites and drive partnership expansion. This will unlock new use cases and make network security more robust.

Blockchain technology relies on extremely sensitive computational operations to maintain data security and privacy. One of the main factors influencing a blockchain’s integrity is its ability to thwart malicious actors. Cryptographic protocols depend heavily on “trusted environments,” an essential component for functionality because they deliver security. In order to add an additional layer of security for blockchains, blockchain startup Cryptosat intends to launch nano-satellites into lower-earth orbit.

These satellites will power a Trusted Execution Environment (TEE) in space for blockchain and cryptographic protocols while serving as tamper-proof hardware and unlocking new use cases for computation in general.

Led by co-founders Yonatan Winetraub and Yan Michalevsky, Cryptosat has closed a $3 million seed round of fundraising to support its mission of operating physically-isolated cryptographic applications in orbiting satellites. The seed round attracted participation from DoraHacks, GoAhead Ventures, Inflection, Protocol Labs, and the founders of Phala Network, among others.

What are the Benefits of Crypto Satellites?

These crypto satellites will allow blockchains to operate with fewer nodes while maintaining a high degree of decentralization and security. Since the satellites will remain in Earth’s orbit, no one can access them physically, making it near-impossible for malicious actors to hack or modify them. Additionally, all to-and-fro communications between the crypto-satellites and the protocols built atop them are entirely transparent, with NORAD and other space agencies responsible for monitoring each satellite.

In May, Cryptosat launched Crypto1 – its proprietary crypto-satellite – via SpaceX’s Transporter 5 mission’s Falcon 9 rocket. By design, the Crypto1 satellite is a coffee mug-sized module that acts as a platform to launch a wide range of blockchain-based applications, products, and services.

With the seed funding in place, the Cryptosat team has begun forging new partnerships with entities interested in building a Trusted Execution Environment (TEE) in space. To date, Cryptosat is developing a Random Beacon for the Velas blockchain, which will be used to generate and transmit “trusted randomness.”

Moreover, the Cryptosat team is collaborating with Protocol Labs to experiment with time-based cryptographic features like Verifiable Delay Functions (VDF) that will eventually be hosted in space.

It is critical to note that crypto-satellites can work anywhere because geopolitical boundaries don’t apply. Physical tampering with a satellite is also a near-insurmountable task. Even if someone attempts this feat, they will be immediately detected by multiple monitoring agencies continuously observing these satellites. Accordingly, this crypto-satellite approach positions Cryptosat to thwart any network and protocol interference while maintaining data privacy, integrity, and, above all, security.

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