As the world grapples with the persistent challenge of the global digital divide, innovative solutions are emerging at the intersection of blockchain technology and satellite connectivity. Today, we’re thrilled to speak with Kofi Ndaikate, a renowned expert in Fintech, blockchain, and cryptocurrency, whose insights into decentralized infrastructure and policy are shaping the future of global internet access. In this conversation, we’ll explore how Low Earth Orbit (LEO) satellites and decentralized physical infrastructure networks (DePIN) are revolutionizing connectivity, the barriers that still stand in the way, and the transformative potential of community-driven solutions for the billions still offline.
Can you start by explaining what the global digital divide means and why it’s such a pressing issue in today’s world?
The global digital divide refers to the gap between those who have access to the internet and digital technologies and those who don’t. It’s a massive problem because, in today’s world, internet access is almost as critical as basic needs like food or shelter. It’s the gateway to education, healthcare, job opportunities, and social connection. Right now, about 2.6 billion people—roughly a third of the world’s population—are offline, with the majority in rural and low-income regions, particularly in parts of Africa, Asia, and Latin America. This divide perpetuates inequality, as those without connectivity are cut off from the tools needed to improve their lives.
What are some of the biggest challenges traditional telecom companies face when trying to connect remote or low-income areas?
Traditional telecoms often struggle with the economics and logistics of serving these areas. Building infrastructure like fiber-optic cables in rural or mountainous regions is incredibly expensive and complicated due to geographic barriers. On top of that, the return on investment is usually low because these communities may not have the purchasing power to generate significant revenue. So, telecoms prioritize urban centers where the costs are lower, and the profits are higher, leaving billions without access.
How do Low Earth Orbit satellites offer a different approach to solving connectivity issues compared to older satellite systems?
LEO satellites are a game-changer because they orbit much closer to Earth—between 160 and 2,000 kilometers—compared to traditional geosynchronous satellites that sit over 35,000 kilometers away. This lower altitude drastically reduces latency, meaning less lag for users, and improves coverage in hard-to-reach areas where cables can’t go. With download speeds often ranging from 50 to 150 Mbps and latency around 25 milliseconds, LEO systems provide a user experience that’s closer to terrestrial broadband, making them a viable solution for bridging the digital divide.
I’ve read that the cost of launching satellites has dropped dramatically. Can you walk us through the factors driving this change?
Absolutely. The cost of sending payloads into orbit has fallen by about 95% over the past few decades, from $65,000 per kilogram to just $1,500. A huge driver of this is the development of reusable rockets, which eliminate the need to build new launch vehicles for every mission. Additionally, advancements in manufacturing and smaller, more efficient satellite designs have made the entire process more accessible. This cost reduction means we can deploy more satellites and expand connectivity to areas that were previously out of reach economically.
Satellite broadband seems to be growing much faster than fiber connections. What’s fueling this rapid adoption?
Satellite broadband is growing at an impressive rate—52.5% year over year compared to just 7.4% for fiber—primarily because of its accessibility. Unlike fiber, which requires extensive ground infrastructure, satellites can deliver internet directly to remote locations without the need for cables or towers. This makes it ideal for rural or isolated communities. Plus, the improving speeds and reliability of satellite services are making them a competitive alternative, even in areas where traditional networks exist.
Despite these advancements, cost remains a barrier for many. How does the pricing of satellite internet impact low-income communities?
Cost is still a significant hurdle. Even in a country like the U.S., where the average broadband plan is around $75 a month, over half of low-income households find it unaffordable. In developing countries, this challenge is magnified due to lower average incomes. For many, paying for internet means sacrificing other essentials, which keeps the digital divide intact. Until pricing models become more inclusive, or subsidies are introduced, satellite internet won’t fully close the gap for those who need it most.
Another concern is the centralized control of satellite networks. Why should users be worried about this?
Centralized control is a real issue because it places power in the hands of a single entity—usually a private company. If that company decides to shut off access to a region for political, financial, or other reasons, users have no recourse. This lack of autonomy can be devastating, especially for communities that rely on connectivity for critical services. It’s not just about access; it’s about ensuring that access isn’t weaponized or withheld, which is a risk under centralized models.
How can decentralized physical infrastructure networks, or DePIN, address some of these challenges around cost and control?
DePIN flips the traditional model on its head by using blockchain technology to enable communities to build, own, and operate their own infrastructure. Instead of a single company controlling a satellite network, individuals and local groups can contribute resources—whether it’s funding, equipment, or labor—and blockchain ensures transparency by tracking contributions and distributing ownership tokens. This approach not only reduces dependency on corporate giants but also allows communities to tailor services to their needs and even earn income from their networks.
Can you paint a picture of how a decentralized satellite network might work for a rural community with no prior internet access?
Imagine a rural village in a mountainous area where laying fiber cables is impossible due to terrain and cost. With a decentralized satellite network, the community could set up small ground stations linked to open-source LEO satellites. Local cooperatives or individuals would own and maintain these stations, ensuring the service meets their specific needs. Using blockchain, contributions to the network—whether financial or through labor—are recorded, and participants receive tokens representing ownership or revenue shares. This not only brings connectivity but also economic opportunity, as locals become stakeholders rather than just consumers.
Looking ahead, what is your forecast for the role of decentralized satellite networks in eliminating the digital divide?
I’m optimistic that decentralized satellite networks, powered by models like DePIN, will play a pivotal role in eliminating the digital divide over the next decade. The technology is already here, and the declining costs of satellite launches make it feasible to scale. What’s critical now is building trust and participation at the community level while ensuring policies support decentralized models over monopolistic ones. If we can balance innovation with inclusivity, we’re not just narrowing the gap—we’re on track to erase it, empowering billions with access and ownership of the digital world.
