Otto Schmidt proposed the interstellar dust hypothesis in 1943 to explain the origin of the solar system and Earth. He hypothesized that gas and dust particles present throughout the universe were captured by the sun during its galactic revolution. These interstellar dust particles began orbiting the primitive sun due to the sun's gravitational pull and their own angular momentum. Over time, the dust particles condensed and formed a flat disc around the sun. The disc redistributed the particles based on factors like mass and density. Eventually, the disc gave rise to asteroids and planets that continued to accrete nearby matter, growing in size and eventually forming satellites.