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Blockstream Acquires Bitcoin Wallet GreenAddress to Advance Sidechains Project

Last Updated March 4, 2021 4:50 PM
Samburaj Das
Last Updated March 4, 2021 4:50 PM

Open source blockchain developer Blockstream, notable for its endeavor for developing sidechains for the bitcoin blockchain has acquired multi-wallet provider GreenAddress. The acquisition, it says, will help the strengthen its sidechain platform.

In an announcement  yesterday, bitcoin blockchain-centric Blockstream revealed its acquisition of European multi-sig bitcoin wallet GreenAddress, in a move that will further accelerate its sidechains development platform.

Founded in 2014, Malta-based GreenAddress was among the earliest bitcoin wallets to provide features like per-transaction two-factor authentication, multi-signature, and a deterministic design at its core which enables users more control over transactions. One of its “key features”, as Blockstream President Adam Back states, is the complete avoidance of storing users’ private keys.

“GreenAddress’s excellent reputation is the product of a three-person team with a deep commitment to Bitcoin,” Back wrote, in a blog that revealed the acquisition.

Unlike other well-funded bitcoin companies in the industry, Back insisted that the acquisition is not an indication of Blockstream’s foray into swallowing up other bitcoin and blockchain startups anytime soon. Instead, the acquisition is to help advance the sidechains project that Blockstream is best known for. He stated:

As we looked at our sidechain technology roadmap, the addition of an open source, well-tested, production quality wallet was a natural choice. It increases the reach of our platform and allows us to meet the requirements of our enterprise applications.

Back revealed that Blockstream and GreenAddress had been working together for nearly two years already, with a collaboration stemming from a shared vision “about the importance of putting Bitcoin users first and striving for the right balance between security and usability,” Back stated.

GreenAddress’ three developers will join Blockstream’s engineering team, with the now-former CEO Lawrence Nahum taking up the role of Senior Architect at Blockstream. GreenAddress Wallet applications will see continued development and will remain open source.

In an announcement  on GreenAddress, Nahum revealed some of the upcoming developments with the wallet provider such as a multi-platform wallet library that enables “more rapid development of all platforms”, as well as enhancing privacy and security for wallet users. Most notably, GreenAddress will also include sidechain support throughout its platform.

He wrote:

Extending GreenAddress to work with sidechains will mean you, as a GreenAddress user, will have the ability to manage not only bitcoin, but other assets and features that are coming online over the next months and years ahead as Blockstream and other developers establish new sidechain-based networks.

Blockstream announced the first commercial application of sidechain technology with Liquid in October 2015, for bitcoin payment processors, brokerages, and exchanges.

In February 2016, Blockstream announced a successful Series A funding round of $55 million, bringing its total capital raised to help develop its innovative sidechain platform to $76 million.

Featured image from Shutterstock.