This paper discusses the development of ultra-high-density satellite-based integrated internet and the importance of distributed satellite information network (DSIN). To overcome the limitations of existing satellite systems, we propose DSIN architecture to bridge the information gap between various satellite systems such as communication, navigation, and remote sensing and build an integrated open information network. It includes innovative network architectures such as distributed regenerative satellite network architecture, distributed satellite computing network architecture, and reconfigurable satellite formation flight. DSIN faces challenges such as network heterogeneity, unpredictable channel dynamics, scarce resources, and distributed collaboration framework. To address these challenges, we propose technologies such as channel modeling and estimation, cloud-native distributed MIMO cooperation, grant-free massive access, and network routing, and develop cross-layer optimization techniques to meet the requirements of the upper layer. Finally, we suggest new research directions and opportunities to achieve the DSIN vision.