Even though blockchain has been around for quite some time, it still has a lot of untapped potential in many areas. Many companies and projects are aware of the variety of possible applications and have started using distributed ledger technology to improve areas and make them more technologically advanced.
In the past, space exploration was largely the exclusive province of the government due to the huge costs of research and development and the risks that could be associated with potential failures.
We are seeing more and more privately funded initiatives these days. From space tourism to the exploration of rare resources, space seems to be one of the most important development areas for the foreseeable future, just like blockchain. And the connection doesn't end there.
Here are some of the applications of blockchain technology in the aerospace industry:
Financing. Due to the complexity of the processes, those departments that deal with the space sector need significant investments. Blockchain responds to this demand in the form of initial coin offerings (ICOs), when potential investors have the opportunity to buy tokens of a space project they are interested in, and acts similarly to crowdfunding.
Logistics. The supply chain for building spaceships is as complex as it gets, and full of risks. Entities located in different parts of the world, responsible for different parts of high-tech products, greatly benefit from the transparency and traceability that distributed ledger technology provides. Especially given how expensive mistakes in this area are.
Space management. The aspect of data sharing is vital in the space industry because it improves navigation, accelerates scientific discoveries, etc. This is especially important for those government agencies that will be involved in space research in the future. Blockchain provides a tamper-proof and transparent way to share knowledge that is not tied to one jurisdiction. This can remove mistrust between countries and likely allow them to work together more effectively.
Data monetization. Space exploration brings tons of valuable information that can generate income to fund future missions. Owners have the ability to store data in a distributed ledger and provide access to interested individuals and companies through utility tokens.
Innovation. Blockchain can be used in many ways to improve the technologies used by industry giants such as the National Aeronautics and Space Administration (NASA).
What are the challenges of using blockchain in space?
While there are certainly numerous benefits to bring these two exciting and modern fields together, it still comes with challenges. First, the legal framework for most developments is inadequate. Space activities overlap a lot with military activities, so a major government shift towards a more positive attitude towards blockchain is needed for full-scale growth. Secondly, space-related initiatives are expensive, so not many companies can participate in the gold rush of the 21st century.
Finally, the European Space Agency (ESA) points to the "hype" around crypto projects as an obstacle to the adoption of blockchain technology, as it can lead to unrealistic expectations and misallocation of funds.
The fact that both blockchain and aerospace are the realms of the future makes them a good match. This has already resulted in many interesting innovative projects, and we have every reason to expect that there will be even more of them. This collaboration is being actively explored by major players such as NASA and ESA.
