Jed McCaleb is known for his contributions to the cryptocurrency world. He started the world’s first Bitcoin exchange, Mt. Gox. He and fellow developer, Sam Yagan created the first network, eDonkey to use multisource downloading. Now, McCaleb is working on his newest venture, Stellar. Stellar was started in 2014 and is a universal financial network created to increase economic participation and to stimulate inclusion. He and his partner, Joyce Kim hope to correct some of the flaws that are in the global financial system.
His new company Stellar is supported by Stellar.org, a nonprofit that promotes digital financial literacy and technology. McCaleb came up with the idea for Stellar after realizing that the technology behind Bitcoin could solve a lot of problems. He saw the path to connecting financial institutions. His idea was to create an open source financial network where information was exchanged. Bitcoin moves value and Stellar links institutions to each other.
McCaleb sees Stellar as the means to connect the unbanked people of the world as well. According to statistics that’s at least 2.5 million people all across the globe. When Stellar links the banks, it will be more affordable for banks to offer the unbanked services. Because of the disconnected nature of the current banking system, it is not economically possible to offer services to the poor. The limited connections keep costs high for money transfers and various other transactions. With Stellar’s open source network, it will be cheaper and easier to move money.
Since 2014, Stellar has undergone some upgrades. The Stellar network is now more scalable, modular and secure. It borrows from the simplicity of the internet, which uses standard tools and libraries. Stellar’s security is tested and retested to ensure maximum security. It uses an enhanced security system called Stellar Concensus Protocol (SCP).
Stellar is run by the community with outside operators and administrators. Stellar also uses global smart contracts to make it scalable, easy and fast. These contracts are batch operations and multi-signature support. He believes the success of Stellar is based on its global community supporting it, operating it and administering it.