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A canadian company called CanadianArrow has entered the XPrize competition with what they call Space Diving.

Simply put, it's sky diving from 40-70 miles above the earth.

CanadianArrow will use a two stage rocket, based on the design of the V2 Rocket to take the space diver up to the required altitude, at which point they will orient the craft, exit, and begin their controlled fall to earth. This works using what is called a Ballute, a cross between a balloon and a parachute that was designed by NASA during the Gemini missions as an emergency escape from orbit.

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