The cryptocurrency industry is incredibly large and encompasses major projects like Bitcoin, Ethereum, Polygon, and Solana. Each major project can create and manage entire sub-ecosystems to serve one purpose or the other.

One example of such an ecosystem is Blockstream, a company focused on enhancing Bitcoin’s security and processing capabilities through a comprehensive suite of products and services.

What is Blockstream?

Source: blockstream.com

Blockstream is a leading company in the Bitcoin ecosystem and has gained its reputation due to its impact on the development of Bitcoin’s infrastructure and technology. It was established with the initial focus of improving Bitcoin’s core capabilities. It achieved this mainly through its main product, Blockstream Liquid, a sidechain designed to enable faster transactions and support more advanced financial applications while preserving Bitcoin’s decentralized nature. Over time, Blockstream expanded its operations into hardware design and second-layer solutions like the Lightning Network.

The company also plays a significant role in Bitcoin development, employing several prominent Bitcoin Core developers who contribute to maintaining and evolving Bitcoin’s software. Its mission is to create the financial infrastructure of the future.

History of Blockstream

Blockstream was founded in 2014 by Adam Back, a key figure in Bitcoin’s early history as the creator of HashCash, a predecessor to Bitcoin’s proof-of-work system. Other members of Blockstream’s leadership team include Erik Svenson, the President and Chief Financial Officer, Michael Minkevich, the COO, Jeff Boortz, the Chief Product Officer, Laurence Nahum, the Chief Architect, and Sean Bill, the Chief Investment Officer.

Blockstream was able to gather immense support from the crypto community, raising over $21 million in its seed funding round, and then another $55 million in its Series A round. Key investors include AXA Strategic Ventures, Blockchain Capital, AME Cloud Ventures, Cast Ventures, and Mosaic Ventures.

Blockstream Ecosystem

The main products of Blockstream include:

Core Lightning

Source: blockstream.com

Core Lightning (CLN) is a more flexible version of the Lightning Network and was created to make Bitcoin transactions faster and more private. Its flexibility allows users to customize their nodes with plugins created in various programming languages. As such, businesses and developers can easily modify CLN to suit specific needs, whether for routing payments or efficiently managing liquidity.

Additionally, Core Lightning is very particular about privacy. This necessitated the inclusion of features like blinded payment paths, which obscure sensitive information such as node IP addresses and public keys. It also utilizes multi-part payments and randomized routing to boost user anonymity, making it an ideal choice for privacy-focused users.

With Core Lightning, users can easily set up dual-funded peer-to-peer channels. Core Lightning is the first Lightning implementation to provide this feature, and it serves as a cheaper alternative to set up and run nodes through balanced channels.

Core Lightning also helps automate processes and manage liquidity with its CLBOSS plugin. It also allows users to open balanced channels and connect directly with their peers through Liquidity Ads. This reduces the need for centralized services and allows users to earn from routing fees. Additionally, using APIs and static invoice systems makes it easier for developers to add advanced features to their Bitcoin dApps.

Liquid

Source: blockstream.com

Blockstream Liquid is a Bitcoin layer-2 solution designed to improve cryptocurrency transactions’ speed, privacy, and overall functionality. It is a sidechain-based network connecting cryptocurrency exchanges, financial institutions, and other entities worldwide.

Liquid was built using the Blockstream Elements platform codebase. Liquid lets users move their Bitcoin to its network and back through a secure two-way peg system. Bitcoin tokens on Liquid are called Liquid Bitcoin or L-BTC, and each L-BTC is backed by an equal amount of BTC held by Liquid’s members, called functionaries. This approach enables faster transaction settlements, with finality achieved in just two minutes, significantly quicker than Bitcoin’s usual confirmation times. It also generates new blocks every minute, which is more consistent than Bitcoin.

Liquid’s most popular feature is its use of Confidential Transactions. This approach hides sensitive information like transaction amounts and asset types, helping it protect user privacy. The platform also enables the issuance of custom tokens known as Issued Assets, representing different assets such as fiat currencies, securities, or other digital collectibles.

The network also supports advanced features such as atomic swaps, multi-signature wallets, and interoperability between L-BTC and custom tokens. It offers more streamlined Bitcoin transactions, enabling businesses to protect sensitive data and explore other use cases like tokenization.

Blockstream Satellite

Another Blockstream product is a satellite network that broadcasts daily Bitcoin blockchain worldwide. It is free to use and provides an easier and faster alternative for connecting to the Bitcoin blockchain, allowing users worldwide to co

nnect to the blockchain without the need for stable internet access. As such, the satellite network improves the overall user experience while preventing nodes from getting partitioned (or isolated).

Blockstream Satellite operates using a network of ground stations known as teleports. These teleports are also part of the larger Bitcoin network, and they transmit blocks to geosynchronous satellites at approximately 22,236 miles. These satellites orbit Earth at the same rate as Earth’s regular rotation, thus allowing them to remain in the same spot relative to the ground. This approach allows the satellites to receive signals from the teleports on the ground without interference and broadcast them across wider regions of the Earth.

As such, anyone within a satellite’s coverage area can easily connect to the Bitcoin network using only a small antenna and a USB receiver. This will enable them to receive blocks and keep their nodes in sync without relying on an internet connection. Moreover, an interconnected system of teleports will ensure that they share access to the same information at all times with little to no risk of fragmentation.

Blockstream Elements

Source: blockstream.com

Elements is an open-source platform launched in June 2015 for deploying federated blockchains and sidechains. Federated sidechains are blockchain models where a group of trusted participants (or federated nodes) validate the transfer of assets. These validators are usually well-known entities that add an extra layer of trust to the sidechain’s operations.

Elements chains can operate as a standalone blockchain or a sidechain and offer full security for asset transfers with features like Confidential Transactions and Issued Assets. With Asset Issuance, Elements enables users to issue, reissue, and transact different types of assets on one blockchain, creating different other use cases for implementation. It works hand in hand with Elements’ Confidential Transactions feature, which obscures transactions by hiding the amount and type of asset the user is transferring.

Elements also introduced new script opcodes in addition to those Bitcoin already supports. Opcodes are basic instructions that define a specific action that can be performed on a network. They are the foundation of any cryptocurrency’s scripting language, allowing users to program commands and automate transactions. Additionally, Elements uses a robust network of signatories, called Block Signers, to sign and create blocks in a reliable and timely manner.

Blockstream AMP

Source: blockstream.com

Blockstream AMP is an asset management platform that provides businesses and developers with a secure framework for issuing and managing digital assets on Blockstream Liquid’s network. These include security tokens, stablecoins, and other blockchain-based assets.

Blockstream AMP also allows users to track the activity of their assets through detailed reports on user balances and transfer histories. Users can also set category-based transfer restrictions via the cosigner features of another Blockstream product- Blockstream Green. Moreover, they can access this feature via a third-party authorization API.

The product also allows users to manage vesting for their assets and track external dividend payments from the same place. Vested assets are automatically assigned to registered users as they vest, and dividends can be distributed in the currency of the issuer’s choice. By default, all transaction details are kept hidden, including the type of asset and the amount. However, asset issuers can choose to share sensitive information with others using a special sharing key.

Blockstream Jade

Source: blockstream.com

Blockstream Jade functions as Bitcoin and Blockstream Liquid’s hardware wallet solution. It stores bitcoin offline on the blockchain, so holders can only access their assets with secure keys saved in their Jade devices. These assets are stored offline, as the Jade device does not connect to the internet, a precautionary measure to protect user keys from falling into the wrong hands.

The Jade device comes equipped with a camera for fully air-gapped transactions. This allows users to send assets and verify addresses by scanning QR codes directly onto the device. Users can also access the Jade device via a mobile companion app and can connect to it using USB, Bluetooth, and QR Codes for better interoperability.

Blockstream Green

Source: blockstream.com

Blockstream Green is another popular Bitcoin and Liquid wallet used to store users’ assets. It is packed with multiple features and can work across different platforms. One such feature is the introduction of a Standard SingleSig Support Protocol. This provides a simpler interface for users, enabling them to use their keys to spend their assets across any app that supports common wallet standards.

Blockstream Green also offers a two-factor multi-sig solution to protect user accounts. This approach keeps one key on the user’s device and the other on Blockstream’s 2FA servers. Users are also free to use a third backup key for extra security.

Blockstream Green can also be integrated with hardware wallets like Blockstream Jade, Ledger, and Trezor devices. It is highly customizable and allows developers to integrate the wallet with their applications. This level of interoperability will enable users to enjoy cold storage of their Bitcoin assets while accessing Blockstream Green’s suite of features and security.

Green supports multiple languages, including English, Brazilian Portuguese, Chinese, Dutch, German, Hebrew, etc. Users must not upload personal documents or information or complete any KYC procedure. All they need is an email address connected to their account, and they will only be contacted for wallet recovery purposes.

Blockstream Explorer

Source: blockstream.info

Blockstream Explorer is a user-friendly, open-source tool that allows individuals to access and analyze information on Bitcoin transactions and blocks. It allows users to search for specific Bitcoin transactions, view recent blocks added to the blockchain, and monitor the status of the Bitcoin network in real time. This level of transparency is a testament to Bitcoin’s decentralized nature, as anyone can verify transactions independently.

Blockstream Explorer also offers more functionality to Bitcoin by supporting both of the Liquid Network and Bitcoin’s testnets. As a privacy-focused solution, the explorer offers Tor support and a tracking-free experience. This ensures that users can explore blockchain data without compromising their personal information.

Cryptocurrency Data Feed

Source: blockstream.com

The Cryptocurrency Data Feed is a new product Blockstream and the Intercontinental Exchange (ICE) developed. It was designed to provide the best real-time and historical data from the world’s largest cryptocurrency establishments.

The Cryptocurrency Data Feed updates with over 200 million trade and quote updates daily across over 400 crypto and fiat currency pairs. The product is also backed by ICE’s STFI Network, ensuring that users never experience any downtime. They will also be notified of any technical interruptions at the venue level.

The feed also provides daily summaries, which include a calculated accumulated volume, VWAP, turnover value, and open/high/low/last trades for each asset. This allows users to close their books without ambiguity properly.

News on Blockstream

On October 15th, 2024, Blockstream announced the conclusion of its recent funding round led by Fulgur Ventures, where it was able to raise up to $210 million. The money raised will help drive the adoption of its layer-2 technologies, expand its mining operations, and grow its Bitcoin treasury, thus reinforcing its position as a leader in the Bitcoin ecosystem.

Blockstream Liquid is also expected to gain more ground in the Real-World Asset (RWA) tokenization sector. Recently, Mexican fintech innovator Mifiel issued over $1 billion in Liquid-based digital promissory notes, setting a precedent for the country’s non-banking financial institutions (NBFIs) to access global liquidity.

Additionally, Blockstream also appointed Michael Minkevich as its new COO. Michael has over 20 years of experience developing advanced technological solutions or traditional industries.

Conclusion

Blockstream offers a comprehensive suite of products and services that make the general use of Bitcoin safer, faster, and more accessible. An example of this is the launch of Blockstream Asset Management (BAM), which will serve as the company’s asset management division.

Blockstream also intends to launch two Bitcoin-based investment funds in the first quarter of 2025. These are the Blockstream Income Fund and the Blockstream Alpha Fund. These funds were created to solve the need for more transparent and regulated financial products, usually focusing on those associated with traditional finance.

Despite the array of Bitcoin-based solutions, it must be noted that the crypto market is infamously volatile. To that end, everyone is advised to do extensive research before investing in any cryptocurrency-related project.