Jed McCaleb developed Stellar after seeing that the financial infrastructure of the world is completely broken and leaves the most vulnerable in the economy without the resources to join a banking institution. Stellar is a universal financial network that uses open source software that connects various financial institutions, businesses, and non-profits. There are 2.5 billion unbanked people in the world according to the World Bank and Jed McCaleb hopes to change that with Stellar. Due to the fact that most unbanked people are located in developing countries, that is where the most interest for Stellar is currently coming from.
One of the reasons so many people are unbanked, according to Jed McCaleb, is that the maintenance costs associated with accounts for low-income individuals are high. In addition, transferring money between financial institutions isn’t cost effective for the institutions or the customers. By networking all of these businesses together it will drive the costs down and encourage these institutions to offer products to people they previously wouldn’t have considered banking with.
Jed McCaleb co-founded Stellar with Joyce Kim in 2014 and continues to improve the infrastructure of the network. He is also serving as the Chief Technical Officer of Stellar and not only handles the technical aspects but also everyday business obligations. He has extensive programming knowledge as the founder of Mt. Vox, the first Bitcoin exchange market and various other projects.
Stellar uses the open source code, meaning clients can alter the code to fit their needs. The network is almost completely run by the community that uses it besides the core code that Stellar created. Much of the funding comes from Stellar.org, which also gives to other open source technology. Stellar.org promotes digital financial literacy along with open source technology.
While Jed McCaleb was inspired by Bitcoin, be didn’t want to create a new cryptocurrency or even a new system for pre-existing ones. Instead, he used some of the aspects of the Bitcoin network to link institutions together for traditional forms of currency. With this technology, Jed McCaleb hopes to change the world for the better and give new financial opportunities to everyone.