Jed McCaleb and His Mission on Fixing the Global Financial System

The Stellar Development Foundation was hatched by Jed McCaleb and Joyce Kim in 2014. Before its rebranding to Stellar, the asset was named Stellar Lumens. In December 2017, Stellar (XLM) hit a market price above $0.90.

Stellar runs on a decentralized exchange that carries Bitcoins and tokens. This decentralized exchange is called Stellar DEX. Many startup companies are beginning to bridge the gap between securities and cryptocurrency coins by allowing people to buy stocks with Bitcoin. McCaleb was noted as saying that in the next decade, he wouldn’t be astounded if all equity (stocks) is not tokenized on the blockchain.

In addition to tokens, an asset can work with a blockchain platform, which gives it flexibility. These blockchain platforms provide trading of holdings with zero barriers to entry. Jed McCaleb believes in the concept of decentralized exchanges. No centralized party would be able to list all the assets concerning the trading demand.

Decentralized exchanges depend on the “smart contracts.” These contracts confirm specific conditions involving the exchanging of assets. Cryptography allows for a verification process, which helps with security. This cryptography also provides fairness as well as transparency with these exchanges.

The concept of the Stellar platform is to strive to resolve the issue of scalability as it pertains to cryptocurrency like Bitcoin. With Stellar.org, they utilize new blockchain methods to try and match the efficiency of the current financial systems, which rely on the fast speeds of the architecture to complete millions of transactions. With Jed McCaleb’s Stellar platform, these transactions can be settled in seconds. Stellar provides a second layer, which allows people to not only tokenize assets, but also exchange traditional financial assets like stocks, currencies, or bonds.

For a solution involving the tokenizing of assets and transferring them over a network protected by cryptography has helped business entities use Stellar’s tools to handle international transactions. Even Fortune 500 companies like IBM have confirmed that they have utilized Jed McCaleb’s Stellar network. The ability to be able to achieve faster, yet low-fee cross-border exchanges is a draw for technology companies looking for new approaches and applications.