Extra-Terrestrial Applications of Blockchains and Cryptocurrencies

Abstract

It will be logistically and economically inappropriate to carry paper money or coins during space travel. The cost associated with such an undertaking is prohibitive and also illogical. We evaluate as to how value based transactions can be conducted in outer space. In this paper, the extra-terrestrial applications of BlockChains and cryptocurrencies are analysed.

First, the concept of cryptocurrencies (also referred to as cryptocoins in this paper) is explained. Then the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs) is discussed. We envisage a scenario where extra-terrestrial settlements use money to exchange value. The feasibility of paper money systems on future settlements outside earth is deliberated.

The various advantages of BlockChains in facilitating economic activity in extra-terrestrial settlements are deliberated. Finally, the paper concludes as to why cryptocurrencies will be best suited to be the mainstream bills of exchange in extra-terrestrial settlements.

Keywords: Extra-Terrestrial, space, Money, Blockchain, Bitcoin, K-Y Protocol

JEL Classification: E51, E52, E58, F33, G18, G21, O38