GC Report recently published the article titled “The Road to Building Stellar with Jed McCaleb on Block Zero”. The article discusses how the new technology of the blockchain project, Stellar.
Stellar’s co-founder, Jed McCaleb, first discovered Bitcoin via an article on the popular technology website, Slashdot. He was immediately enchanted by the idea, thinking it would be interesting if there was a currency that was not controlled centrally. One of the first things he created himself was Mt. Gox, a centralized website to trade Bitcoin. At one point, it even accounted for the majority of cryptocurrency trading. McCaleb sold the software nearly a year later, in 2011, to a software developer. After it was sold, it experienced a hack in 2014 that was fairly significant.
However, at the time, McCaleb was busy trying to solve one of the issues within Bitcoin. Though it was gaining in popular awareness and acceptance, many noticed an issue within the currency’s foundation. The process of mining the currency bothered McCaleb particularly. He felt there was an issue of efficiency and created a company to try to solve the issue.
In 2014, McCaleb began the Stellar Development Foundation. The company was created as a protocol for payments of the cryptocurrency. He sought to create a connection between all of the different payment networks and financial institutions so that the currency could function in a similar way to email. He felt that the connections needed to occur beyond just the big banks and that they needed to extend to a variety of financial institutions.
As mentioned in Global Coin Report, Stellar began as a nonprofit, sourced for the people. McCaleb wanted to create trust between the organization and people so they would understand it wouldn’t change the business plans. One of the intriguing aspects of the company is that it uses the Byzantine agreement. It is a consensus model created by a professor at Stanford which enables each network to select others that they trust. This creates a web of consensus structures. It also moved away from private chains.
Jed McCaleb has been the founder of a variety of companies like Code Collective and Stellar Development Foundation. He is currently the advisor at the Machine Intelligence Research Institute. Contact Jed McCaleb on LinkedIn today.