In space communications, authentication plays an important role as a security technique that verifies and validates satellite identity. Single authentication can be weak and compromised. This project will investigate a novel two-layered multifactor authentication (2L-MFA) accompanied by a decentralized blockchain-based Satellite and IoT environment. The first-level authentication is for IoT devices and considers the secret key, geographical location, and the physically unclonable function (PUF). For lightweight and low latency support, proof-of authentication (PoAh) and elliptic curve Diffie-Hellman are used. Second-level authentication is for Satellite users and is subcategorized into four factor levels, namely identity, password, and the Nonce code (Blockchain). Matrix-based password enrolment in level 1, Elliptic Curve Digital Signature (ECDSA) in level 2, ensure Satellite-level authentication. Fuzzy logic will be deployed to validate the authentication and make the system stronger. The proposed 2L-MFA is evaluated in terms of registration time, login time, authentication time and authentication success rate.