Jed McCaleb Could Change the Financial Industry
Jed McCaleb’s newest business venture Stellar could change the way lower income people handle their finances around the world. Stellar is an open source network that is designed to connect financial institutions and other organizations globally and drive down the cost of maintaining accounts and transferring money. Inspired by the Bitcoin network, Jed McCaleb started Stellar after noting the considerable problems facing the global financial network. While Jed McCaleb is very familiar with Bitcoin being the founder of the first exchange system for Bitcoin Mt. Gox, he did not want to create another system for cryptocurrency and instead wanted to make a better network for the currency that is most traditionally used today.
According to Jed McCaleb, one of the main reasons financial institutions do not want to provide services for the 2.5 billion unbanked people around the world are the considerable maintenance costs associated with accounts for low-income people. These costs would drop dramatically if Stellar is more widely implemented which is why developing countries have shown such interest in it as they are where the majority of this unbanked population resides.
By being open source, Jed McCaleb’s Stellar network allows their clients to alter the code to suit them best while still allowing the core of the network to remain within Stellar. The majority of the network is community run with the bare minimum being housed in Stellar’s servers. Stellar uses standard tools and libraries making the network simple by technology standards. Jed McCaleb’s expertise with creating peer-to-peer networks as the founder of eDonkey2000 has helped him with the design of the distributed network that is Stellar. Since Stellar’s creation in 2014, Jed McCaleb has improved the infrastructure of the network to make it more scalable and more reliable. One of the main problems with Bitcoin today is scalability in their network as the cryptocurrency gains popularity.
Jed McCaleb is also very interested in artificial intelligence and is an advisor for MIRI, the Machine Intelligence Research Institute. MIRI is focused on ensuring that AI that surpasses human intelligence will have a positive impact on society. Stellar.org not only funds the Stellar network but also helps fund other open source projects.