SXT again backed by Microsoft, what is its potential in data storytelling?
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SXT again backed by Microsoft, what is its potential in data storytelling?
Microsoft's ambitions in entering decentralized data processing are significant.
Navigating Web3 tides with focused insightsAuthor: Bright, Foresight News
On the evening of May 20, Microsoft was reported to be integrating new blockchain data sources into its Fabric analytics platform through a collaboration with crypto startup Space and Time Labs (SXT). Space and Time will provide Fabric users with "real-time, verifiable" data feeds from Bitcoin, Sui, and Ethereum on Microsoft Azure OneLake—a "data OneDrive" offering a single cloud storage account.
Space and Time (SXT) is a decentralized database project based on zero-knowledge proofs (ZK), designed to solve data processing challenges for blockchain smart contracts. Its core technology is the Proof of SQL protocol, which unifies on-chain (e.g., Ethereum, Bitcoin) and off-chain (e.g., traditional databases, IoT data) multi-source data into SQL-compatible structured tables. This allows developers to query data using standard SQL statements and generate zero-knowledge proofs to verify the correctness and integrity of results.
SXT has received two investments from Microsoft's M12 fund (leading a $20 million round in 2022 and participating in a $20 million Series A in 2024) and has partnered with platforms such as Binance and Chainlink. In May 2025, it launched on Binance Launchpool and Binance Alpha, distributing airdrops to Chainlink stakers and Binance Alpha users.
Solving On-Chain, Bridging to Reality
Current blockchain smart contracts face four major data challenges: difficulty accessing cross-chain data, lack of tools for complex queries, slow ZK proof generation, and oracle centralization risks. The Graph (GRT), a veteran decentralized data indexing protocol, primarily addresses the efficiency of querying on-chain data. It incentivizes nodes (indexers) to extract raw data—such as transactions and contract events—from public blockchains like Ethereum and Polygon, structuring them into queryable API interfaces (Subgraphs). Developers can then quickly retrieve on-chain information using GraphQL. However, its functional limitations are clear: it supports only on-chain data without integration of off-chain or cross-chain sources, and lacks cryptographic verification of query results, relying instead on economic incentives among nodes for data trustworthiness.
SXT’s chain, centered on the Proof of SQL protocol, not only resolves native blockchain data processing issues but also introduces real-world data handling capabilities:
For example, sub-second ZK proofs. STX supports standard SQL syntax (JOIN, GROUP BY, time-series analysis, etc.), enabling cross-chain data correlation (e.g., “address A’s total staked amount across ETH/BSC/zkSync”) and historical trend analysis (e.g., “reasons behind a DEX’s trading volume fluctuations over the past 30 days”). By leveraging GPU acceleration, STX claims to generate corresponding zk-SNARK proofs in “sub-second” time—significantly faster than the tens of seconds required by traditional zkVMs. Additionally, STX supports queries on datasets up to 100GB, achieving “on-chain data verified in seconds.”
Also, SQL query freedom. STX transforms on-chain data from networks like Ethereum and Bitcoin into SQL-compatible table structures, while also supporting integration of off-chain data sources (SQL databases, APIs, IoT streams) and cross-chain consolidation. For instance, a company’s off-chain sales records can be synchronized and stored with on-chain transaction logs to form a unified dataset. Developers can directly use SQL to query complex data such as historical transactions and cross-chain assets, eliminating reliance on centralized oracles.
Moreover, STX’s three-layer node architecture demonstrates thoughtful design. Indexing nodes extract and structure data from major public chains, staking SXT tokens to ensure data authenticity—with malicious behavior resulting in token slashing. Proving nodes process query requests and generate ZK proofs, delivering performance described as a “quantum leap” over traditional solutions. Validators maintain data immutability via BFT consensus, ensuring on-chain commitments align with underlying data.
Microsoft Backing, Diverse Applications
The emergence of the SXT chain continues to fuel imagination across diverse application scenarios—perhaps explaining why SXT has secured consecutive investments from Microsoft’s M12 fund (a $20 million lead in 2022 and participation in a $20 million Series A in 2024).
In DeFi, it enables real-time analysis of users’ multi-chain asset positions to dynamically adjust lending rates, or integrates user assets with protocol health metrics across chains to support complex derivatives. In enterprise settings, institutions like FTI Consulting use it to generate tamper-proof audit reports compliant with regulators such as the SEC, while industries with high audit demands like IoT can further ensure data integrity through SXT. In AI, combining on-chain data with Azure OpenAI allows training of trustworthy models—for example, intelligent trading bots that predict market trends. In gaming, off-chain game events can be imported into SXT with ZK proofs and sent to NFT smart contracts, enabling on-chain attribute evolution (level, skins, rewards). Game studios can analyze player behavior and in-game economies across chains without relying on centralized data storage.
Furthermore, monetizing data on-chain becomes increasingly feasible. Whenever a dataset is queried, the publishing entity earns SXT token rewards. This incentivizes multiple parties to contribute and query shared data, facilitating the creation of trustless database consortia.
In terms of tokenomics, over 50% of the 5 billion $SXT total supply is allocated to the community, used to incentivize node staking, data provisioning, and developer ecosystem growth. Stakers earn annualized returns, while data publishers receive revenue shares based on query volume.
Despite challenges in technical implementation and regulatory compliance, SXT chain—backed by Microsoft and supported by Chainlink—stands a strong chance of becoming a core layer of Web3 data infrastructure. With its differentiated positioning of “trusted data + SQL querying,” it could drive blockchain’s expansion from financial applications toward enterprise-grade data services.
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