Jed McCaleb is known for his expertise in the field of blockchain cryptocurrency. It was his interest in that area of technology and finance that led him to recognize major flaws in our financial system, which he felt compelled to address. Stellar is Jed’s answer to those problems.
Teaming up with Joyce Kim, the pair founded the Stellar Development Foundation. As part of the management team, McCaleb wears many hats in the organization from working on the technical aspects to helping Kim run the managerial aspects. It’s quite an undertaking, considering the fact that Jed adapted bitcoin technology to form this open source financial system. The purpose behind the Stellar project was to connect financial institutions around the world.
His motive for creating Stellar was simple enough. He wanted to create a more efficient way to send money transfers between banking institutions, which would lower the costs of many banking services. This would make it more feasible for low income individuals to begin banking, which would benefit those people and the economy in general. Currently, McCaleb estimates 2.5 billion people don’t bank with any institution.
Througout the world, Stellar has already been implemented in the infrastructure of participating banks, businesses, and nonprofit organizations, but there’s still much more to be accomplished. The goal was to bring banking to underdeveloped communities, which is something McCaleb is still working towards. Since most of those 2.5 billion unbanked people live in underdeveloped countries, Stellar has yet to reach its fullest potential.
In the meantime, Stellar has been upgraded, since its 2014 debut. Today, the system is easier to use and understand, taking advantage of the latest networking advances. By incorporating the simplicity of the internet, users can more efficiently communicate and utilize Stellar’s inventory of tools.
In addition to simplifying the use of the system, Jed McCaleb and his team has worked to make it more secure. They created the SCP (Stellar Consensus Protocol) to help protect the system and the sensitive financial data with which it’s entrusted. McCaleb also tasks his team with conducting routine tests to make sure Stellar is operating at peak efficiency. They conduct failure simulations and integration tests, so new problems will be detected early.
As technology advances, Jed McCaleb looks for ways to keep the Stellar network up to date and secure. The lower cost of banking that this system has introduced has already opened up new possibilities to low income families around the world. As more organizations adapt to the system, the banking sector will become more unified and more accessible.