We no longer support this browser. Using a supported browser will provide a better experience.
Please update your browser.
Onyx by J.P. Morgan launches blockchain in space
Pressing deeper into the Internet of Things, J.P. Morgan executes blockchain transaction between satellites.
J.P. Morgan has tested the world’s first bank-led tokenized value transfer in space, executed via smart contracts on a blockchain network established between satellites orbiting the earth.
The project is the latest in the firm’s efforts to combine blockchain with the Internet of Things (IOT), which previously saw initiatives in Chase Auto financing and renewable energy. It also demonstrated how the firm is leveraging work across innovation areas as the project was first introduced to the blockchain team by the internal “FLARE” group (‘Future Lab for Applied Research and Engineering’) – a team conducting applied research on frontier technologies.
Given their multi-faceted use in everyday life, yet separation from earth-based systems, satellites presented an interesting opportunity on which to build a blockchain network that would enable a decentralized flow of data between machines.
As part of our team’s focus on ‘Horizon 3’ projects that identify disruptive areas in which blockchain can create value, we decided there was enough here to begin thinking about what a space payments system would look like over the long term. But first we needed to prove it was even possible by testing some foundational components.
Tyrone Lobban, head of the Blockchain Launch team, which forms part of the recently announced Onyx by J.P. Morgan business unit.
The first test case centered on building a network to execute a basic transaction from earth to a satellite. For this, the Blockchain Launch team worked with satellite company GomSpace to deploy a Consensys Quorum blockchain onto one of Gomspace’s Low Earth Orbit (LEO) satellites. Crucially, this required utilizing a special installation of Consensys Quorum that was small enough to operate on low-memory devices, first tested on the ground on a Raspberry Pi.
One of the challenges in working with devices is the memory constraints. This is amplified on a satellite because much of the memory is reserved as a backup for the satellite itself – not for running blockchain software. So we had to get creative to be able to generate the private keys for new accounts – typically a computationally heavy process.
Lobban
After executing a successful token transfer on the newly established satellite-to-Earth Consensys Quorum network, the next stage focused on executing a more complex transaction type - deploying an ERC-20 contract, a well-known Ethereum standard, to represent tokenized value on the same network. With satellites in constant orbit, the team then tested how the network would maintain the state of its ledger as the satellite moved and the connection with the ground station was interrupted.
Finally – and most importantly – they successfully executed a transaction between two LEO satellites, which validated the approach towards a decentralized network where communication with earth is not necessary. This breakthrough opens the door to a potential peer-to-peer DvP (‘data versus payment’) satellite marketplace in the long term, as private companies prepare to launch their own constellations.
Blockchain can facilitate a common communication and payments protocol between satellite providers, which could underpin the exchange of services between satellites, for example in the provision of continuous broadband links or to capture images and weather data using peer-to-peer autonomous contracts.
Lobban
The space economy is projected to grow from $350 billion to as much as $1 trillion in 20 years*, as companies such as SpaceX and Blue Origin continue to expand the role of private enterprise.
“A core part of our business revolves around payments and so we spend a lot of time thinking about how they will evolve in the future,” said Rob Matles, head of FLARE and Global Technology Innovation Enablement. “Space exploration is becoming increasingly well-funded and presents an exciting opportunity to deploy financial technology to create a brand-new payments infrastructure leveraging blockchain.”
Back on earth, the success of the project’s decentralized approach represents a new benchmark in the rapidly advancing IOT sector, where payments between “Things” opens the possibility for a machine-to-machine economy.
*Source:
- Space: Investing in the Final Frontier. Morgan Stanley, July 24, 2020, https://www.morganstanley.com/ideas/investing-in-space/. Accessed February 22, 2021.
- A New Space Economy on the Edge of Liftoff. Morgan Stanley, February 17, 2021, https://www.morganstanley.com/Themes/global-space-economy/. Accessed February 22, 2021.
This communication contains information that has been obtained or derived from sources believed to be reliable, however, J.P. Morgan does not make any representations or warranties as to the information’s accuracy or completeness. This communication and the information contained herein has been provided solely for informational purposes and is not intended to be a solicitation by J.P. Morgan of any product or service, or be legally binding in any respect. Investments, products or strategies discussed herein may not be suitable for all clients. Any potential benefits enumerated are illustrative and product results are not guaranteed. This material is not intended to provide recommendations. Please consult your own advisors concerning accounting, legal, financial, tax or other matters. Not all products and services are available in all geographic areas. Eligibility is subject to final determination by J.P. Morgan. J.P. Morgan is the marketing name for the Wholesale Payments business of JPMorgan Chase Bank, N.A. and its affiliates worldwide.
JPMorgan Chase Bank, N.A. Member FDIC.
JPMorgan Chase Bank, N.A., organized under the laws of U.S.A. with limited liability.
© 2021 JPMorgan Chase & Co. All Rights Reserved.
You're now leaving J.P. Morgan
J.P. Morgan’s website and/or mobile terms, privacy and security policies don’t apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan name.