The Biteeu exchange, founded by Kazakhstanis, intends to become the safest exchange in the world after switching to a satellite network architecture in orbit. The space hub module, created for Biteeu by partner SpaceChain, is installed on the YAM-2 satellite carried by a rocket. The mission was made possible by satellite control operator Loft Orbital.
"This made Biteeu the first cryptocurrency exchange in the world to use high security space-class infrastructure for ultra-secure Bitcoin cryptocurrency transactions. Previously, Biteeu was the first cryptocurrency exchange in the world to receive ISO 27001 certification, which confirms compliance with global best practices in information security management systems. The announcement today further confirms the exchange's commitment to providing ultra-secure user privacy through advanced technology," Biteeu said.
Biteeu co-founder and chairman Shukhrat Ibragimov told ComNews that the Biteeu exchange is famous for being domiciled with licenses in the European Union and Australia. "Going into space provides an unprecedented level of virtual security for all exchange customers," says Shukhrat Ibragimov. - The multisignature function from space will be available this fall, allowing customers to prevent dubious and risky transactions taking place in their wallets in time. Connecting such a feature and the fact that Biteeu shares multisignature liquidity with Bittrex allows it to attract large institutional investors and expect significant growth in transaction volume. All exchange data is backed up daily on the company's server on a satellite in outer space, which eliminates the possibility of physical hacking and hacker attack. After the launch of the multi-signature function, all clients will be able to prevent the theft of their funds from their personal wallets in time, as the last signature will be made in space on the most secure server in the world."
The company explains that the various security mechanisms used by the Biteeu space hub, including a data transfer delay of up to 12 hours between ground stations and satellites, prevent cyber fraud and theft because hackers cannot quickly withdraw digital assets. "Additional remoteness in space, the autonomy of end-to-end encrypted satellite communications and key storage on the satellite greatly enhance the security of data and transactions, which can be vulnerable to cyberattacks and hacking if hosted exclusively on physical Earth servers," Biteeu said.
"Cryptocurrency is becoming a driving force in the new era of global commerce, but due to growing security concerns, we are seeing limitations of terrestrial infrastructure that prevent users from realizing the full benefits of cryptocurrencies," said Shukhrat Ibragimov.
Biteeu expects that the hardware and software tests will be completed by November 2021. Once the tests are completed, Biteeu users, including those from CIS countries, will be able to authorize Bitcoin transactions through a multi-signature wallet in space.
Biteeu is managed and controlled by Eurasian Space Ventures (ESV), a private company registered in Kazakhstan, which plans to become a hub for global space projects and related organizations wishing to operate in Kazakhstan. ESV and SpaceChain signed a memorandum of understanding (MOU) to further collaborate and develop joint space technology projects within two years.
"Biteeu's multi-signature transaction organization from space reflects our ongoing efforts to provide the highest level of data protection for our users and improve security standards in the cryptocurrency market," said Talgat Dossanov, co-founder and CEO of Biteeu.
Artem Korostelev, a member of the Association of Lawyers of Russia, said that the location of the exchange's technical center in outer space does not exclude the application to relations related to transactions carried out on this platform of the law of the state - the place of the company's registration. "In this regard, to say that the relations will be taken out of the sphere of legal regulation is incorrect. The same approach applies to transactions carried out through space (satellite) communication channels. The parties of the contract (trading) are in any case on the Earth, so they are subject to the Earth law," comments Artem Korostelev. - Such a model of data transmission has advantages over the currently used ones - in particular, it ensures confidentiality, has a high transmission speed and minimizes the risk of unauthorized interference from third parties.
AltegroSky shareholder Sergey Pekhterev noted that there are two points - extraterritoriality and a 12-hour delay to "prevent fraud." "In general, the idea of this startup seems questionable to me. The first is extraterritoriality. You don't have to go into space, you just have to go 12 nautical miles away from any seashore or ocean, and you're in neutral waters. It's more difficult with 12-hour delays: how long will potential exchange clients wait for 12 hours to confirm a transaction? I still have my doubts. Then there is a purely technical issue - the reliability of the hardware platform. Unlike any ground-based node, where you can replace a server, in space this is impossible, and besides, for low orbit the life of a satellite is limited to a few years. So far, in my opinion, space and satellite are used here more as a marketing tool than for technological purposes. In general, I am confused by projects related to cryptocurrency exchanges. In one famous work, the heroes needed 15 minutes to run to the Canadian border, but in this case we are talking about as much as 12 hours," - said Sergey Pekhterev.