> For the complete documentation index, see [llms.txt](https://docs.spacecoin.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.spacecoin.org/network/how-it-works.md).

# How It Works

Spacecoin is being built as a connectivity ecosystem that combines infrastructure, verification, participation, and incentives.

At a high level, the system can be understood in four layers:

### 1. Product layer <a href="#id-1-product-layer" id="id-1-product-layer"></a>

This is where developers and partners interact with the ecosystem through products such as SpaceRouter.

### 2. Network layer <a href="#id-2-network-layer" id="id-2-network-layer"></a>

This is the broader connectivity layer that connects infrastructure, participation, and routing across the system.

**Architecture**

The network's foundation consists of blockchain-enabled small satellites operating in Low Earth Orbit (LEO). This space-based infrastructure operates independently of terrestrial systems (cell towers, fiber optics, etc.), providing censorship-resistant and regionally fault-tolerant "lifeline connectivity."

**No Kill Switch**: No single entity can control or disable the entire network. Even if individual satellite operators or ground stations go offline, the rest of the network continues to operate.

**Open Constellation**: Anyone meeting protocol standards can add their own satellites without any review process. $SPACE staking serves as the trust mechanism.

**Blockchain Integration**

The Creditcoin blockchain serves as the primary ledger for network operations.

* Transaction hashes for satellite data transmissions are recorded on the Creditcoin blockchain
* This creates immutable, publicly accessible records
* Anyone can independently verify the network's operational status and data transmissions

**Payment Flow**

Payments are processed through a blockchain-based escrow mechanism:

1. Users lock $SPACE in a smart contract before requesting service (prepaid guarantee)
2. Operators deliver the service and submit cryptographic proof
3. The smart contract automatically verifies the proof and releases payment

This enables real-time settlement, cross-border transactions without currency conversion, and viable micropayments.

### 3. Verification layer <a href="#id-3-verification-layer" id="id-3-verification-layer"></a>

Spacecoin includes verification concepts intended to help establish trust in network activity and participation, such as our patented Proof of Location technology.

### 4. Incentive layer <a href="#id-4-incentive-layer" id="id-4-incentive-layer"></a>

The SPACE token helps align participation, usage, and network growth across the ecosystem.

### How the pieces fit together <a href="#how-the-pieces-fit-together" id="how-the-pieces-fit-together"></a>

A developer or partner may begin by integrating a product such as SpaceRouter. That product sits within a broader network model that is supported by infrastructure, verification, and incentives. Over time, as the network expands, these layers work together to support a more open and resilient connectivity model.