Blockstream: A Versatile Player in the Bitcoin Ecosystem

In August 2021, Bitcoin and blockchain infrastructure company Blockstream completed a $210 million Series B funding round and acquired the Israeli ASIC chip design team Spondoolies. This marks Blockstream's gradual expansion from its originally software-centric business into the upstream areas of the Bitcoin industry chain.

Blockstream initially focused on the Bitcoin sidechain "Liquid" ecosystem and Bitcoin mining-related services, as well as some data-related businesses. The company is committed to expanding and strengthening the Bitcoin ecosystem. They also entered the consumer product space by acquiring the Bitcoin wallet Green Wallet.

At the same time, Blockstream continues to maintain and iterate multiple free products in the Bitcoin ecosystem, such as the Bitcoin full node satellite network Blockstream Satellite, the multi-signature wallet Blockstream Green, and the Lightning Network client c-lightning.

In early 2020, Blockstream announced the launch of Bitcoin mining services, collaborating with the Norwegian listed company Aker and others to engage in mining operations. They also introduced the "Blockstream Energy" service to assist energy producers in selling excess electricity to miners, improving power generation efficiency and enhancing the economic viability of renewable energy projects worldwide, especially in remote areas.

In chip manufacturing, Blockstream acquired the intellectual property of the Bitcoin mining hardware manufacturer Spondoolies, and the core team of Spondoolies joined Blockstream to focus on ASIC chip design and manufacturing. Additionally, Blockstream launched the Blockstream Mining Note(BMN), a Bitcoin mining token circulating on Liquid for qualified investors.

Currently, Blockstream covers almost all dimensions of the product matrix related to Bitcoin development, institutional services, mining, and more. The key core of Blockstream's "Bitcoin Family Bucket" is the "Liquid" sidechain, which can be simply understood as the "smart contract layer based on Bitcoin." As a second layer network for Bitcoin, it allows the issuance of security tokens and other digital assets, aiming to provide financial products and services through the Bitcoin network and to be used for the settlement of financial assets.

Blockstream was founded in 2014, at a time when the Ethereum presale was starting and the Bitcoin community's scaling debate was becoming increasingly intense. The company boasts an impressive lineup, including former HashCash developer Adam Back and early e-cash developer Hammie Hill. Additionally, Blockstream has a star-studded development team, including Gregory Maxwell, who later became a leading Bitcoin Core developer.

In the Bitcoin scalability debate, the opposition is represented by Blockstream and core developer Gregory Maxwell. They believe that the congestion problem can and should be solved in the long term through second-layer networks, advocating for keeping the Bitcoin network at 1MB while launching second-layer solutions such as Segregated Witness and Lightning Network outside the Bitcoin network.

Blockstream has gradually gathered a group of the best developers from the Bitcoin community, making significant contributions to the development and maintenance of Bitcoin's daily code. However, these developers are directly employed by Blockstream and are salaried employees of the company, which has led some community members to question the independence of Bitcoin's core developers.

Blockstream can be seen as the most influential "KOL organization" in the Bitcoin community. Company executives often criticize the Ethereum community, believing that only through Bitcoin, the Lightning Network, and Liquid can a truly decentralized financial system be built. The debate between Blockstream and the Ethereum community reflects, to some extent, the ideological struggle between Bitcoin and other cryptocurrencies.