Jed McCaleb is a cryptocurrencies enthusiast who is using his knowledge of the industry to make the industry better by innovating new methods of transacting using the cryptocurrencies. McCaleb through Stellar Development Foundation is behind a project that will see the creation of a single payment system for the whole world. The system will be achieved by working with banking institutions as well as creating a secure network that cannot allow money to be stolen. Already there are online transactions which facilitate movement of money from one point to another, but Stellar will be different.
Unlike bitcoin which can only be used to transfer one currency, Stellar will be looking to utilize all the currencies. One will send cryptocurrencies but the recipient will receive in the currency he or she would love to have. Bitcoin is protected by mining. This is a process which involves running machines which generate a fraction of bitcoin. The mining system is however too expensive. One will require huge amounts of energy to generate bitcoins. Unfortunately, this is the only solution that is available for keeping the system secure.
According to McCaleb, for Stellar, the security of the system, which is still under debate, is the creation of trust among machines. One user will create a list of users he also trusts, and these users will have their users whom they trust. At the end will be one large pool composed of trusted users. The system according to Jed McCaleb has the advantage of being able to identify weaknesses on its own. If there is a user who cannot be trusted, the system will flag that user. The stellar algorithm is meant to work with an unlimited number of machines meaning that everyone in the world will be able to use them without a problem. The system is also easier for many people because it does not require heavy mining like in the case of bitcoin. Anyone can join and utilize the network.
Jed McCaleb has a history of assisting the cryptocurrencies industry. He joined the industry in 2010 following an online article he read about bitcoin. He was interested in the whole concept of a currency that cannot be traced or controlled by any government. Visit Jed McCaleb on LinkedIn.