This week’s top story — Blockstream’s Satellite Powered Bitcoin Network

Wilson Withiam
Circle Research
Published in
4 min readMar 22, 2019

Read the full weekly crypto recap here.

Blockstream has been a prominent company in the Bitcoin ecosystem. Co-founders Adam Back (the creator of Bitcoin predecessor Hashcash), Gregory Maxwell, and Adam Hill, among other developers, thought the importance placed on Bitcoin security, while vital, would stifle the pace of protocol development. Therefore, Blockstream was created in 2014 to not only help support the development of the Bitcoin protocol, but also to accelerate blockchain innovation without needing an alternative cryptocurrency.

As of now, Blockstream is one of the institutions that provides funding to Bitcoin Core, the most popular Bitcoin client, and employs a handful of engineers to develop the Bitcoin and Lightning networks. Moreover, the company has placed significant focus on the creation of sidechains to address the limitations observed with Bitcoin innovation. Sidechains are independent blockchains that can be linked to a base layer protocol via a two-way peg, which enables developers to experiment with network features beyond Bitcoin’s capabilities without altering the underlying protocol or cryptocurrency. For instance, Liquid, a recently launched sidechain built by Blockstream, provides superior privacy and scalability to Bitcoin, though it is less decentralized.

While Blockstream sidechains have been well-documented, we wanted to take the time to outline one of the company’s lesser known endeavors that aims to extend Bitcoin’s inclusivity.

Blockstream Satellite

“Bitcoin has always been about uncensorable money, and now we have uncensorable communications as well.” Samson Mow, CSO Blockstream

The team at Blockstream sees Bitcoin as revolutionizing money and digital commerce. But in order for Bitcoin to be truly transformative, it has to be globally accessible. Therefore, the company launched its Blockstream Satellite service in 2017 to provide access to the Bitcoin blockchain without the need for internet connectivity.

The system works through a series of satellite ground stations, dubbed “teleports”, that participate in the Bitcoin network and transmit blocks to orbiting satellites. These satellites then broadcast the Bitcoin blockchain across earth to anyone running a satellite node (satellite coverage can be found here). Teleports also send Bitcoin blocks to each other and are located evenly across the globe in an effort to provide 24/7 coverage.

Since Blockstream teleport broadcasts are radio signals, users wishing to receive these Bitcoin transmissions will need a satellite receiver (such as a satellite TV dish) and a USB Software-defined radio (SDR) dongle in addition to their host computer. The SDR is required to convert received signals into digital information that can be processed by a computer. The set up is tedious and signal reception success may be weather dependent, but this process provides individuals with the infrastructure to send and receive payments and private messages via Bitcoin without having to connect to the internet.

Last week, Blockstream announced their satellite message API went live on the Bitcoin mainnet (the service was only available on testnet before). The API enables users to broadcast messages to each other without censorship and pay for it using the Lightning Network (for a more detailed look at the Lightning Network, read our weekly recap 2/8–2/14). In a fitting example, one individual documented how he sent the final paragraph of the Communist Manifesto across the globe. Developers can also use this API to build applications and services on top of the satellite network. The first implementation is featured on the Blockstream website and enables intuitive message broadcasting for around 18,000 satoshis.

While most early messages on the satellite network have been exploratory, the implications of this type of service could extend beyond these initial examples. Removing the need for internet access helps increase Bitcoin’s global reach. Since the satellite data is broadcasted, attackers cannot track user location through full-node IP addresses. Finally, the satellite network can act as a secondary connection to mitigate the risk of internet disruption mid-transaction. Ultimately, Blockstream Satellite could play a role in providing access to those restricted from internet connectivity to be able to safely send transactions, store value and communicate with others.

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Wilson Withiam
Circle Research

Research Intern at Circle Research | Chapter Head @DappDevsCT