Jed McCaleb, co-founder of Stellar, has been working on blockchain technologies for many years, now, and he has founded a spread of blockchain projects. He recalls when he first became aware of Bitcoin in 2010 while reading an article and found the idea of it fascinating.
He believed that this was an important discovery and knew he wanted to be a part of it. The first project he was a part of that was related to Bitcoin was Mt. Gox, which was the original centralized exchange for Bitcoin. He eventually sold Mt. Gox to Mark Karpeles but held onto a 12% share of the company while he focused on other Bitcoin related issues.
Jed McCaleb began to work on Ripple soon after selling Mt. Gox, because he realized that the mining process was wasteful. Over the years, he watched Ripple grow and become something more than it was originally intended to be. Many other applications were made from the technology that Ripple was using, and one of these was Stellar, which Jed McCaleb helped to found. The idea with Stellar was and is to connect financial institutions and payment networks so that it is much easier to send money from one place to another. One of the unique standouts about Stellar is the fact that it was created as a nonprofit that was open sourced, which created trust in it.
Jed McCaleb is happy that Stellar uses the federated Byzantine agreement, which helps to create consensus and stronger network security. This makes it so Stellar doesn’t need so many validators and that bad validators can be released from the network. Stellar’s model also accounts for assets that are tokenized on the blockchain, which further helps with security. While some doubt the security of Stellar’s business model, Jed McCaleb has made it clear that they simply do not understand how it actually works. Now, as Stellar becomes a more well-known cryptocurrency, Jed McCaleb plans on continuing to work with big banks and other financial institutions to help ease the increasingly higher costs of all of the transactions going on all over the world.