For a space elevator to function, a cable with one end attached to the Earth's surface stretches upwards, reaching beyond geosynchronous orbit, at 21,700 miles (35,000-kilometer altitude). After that, simple physics takes charge. Interesting; read all about it.
Space Elevators - the next futuristic challenge
The prizes, announced on Wednesday evening, are the first in a series called "Centennial Challenges", modelled on the $10 million X Prize recently awarded to the first privately developed spacecraft. Winning teams will receive $50,000 in 2005 for either building the strongest strand of material or for using light to power a wireless robot up a cable. Read about it.