Jed McCaleb may be the CTO and co-founder of Stellar, but he didn’t begin his career in such a high position. During the turn of the century, McCaleb was involved in the file sharing industry. At eDonkey, McCaleb worked on a protocol that enabled users to download files from one another instead of a centralized network. He also used this technology in a second company, Overnet. Prior to Stellar, Mt. Gox was McCaleb’s most renowned organization. Mt. Gox was originally a trading platform for gamers but soon became a global exchange network for bitcoin.
McCaleb was first exposed to bitcoin in 2010 via a article on online tech news site Slashdot. The article linked to a bitcoin discussion forum. McCaleb educated himself on the ins and outs of cryptocurency by browsing this forum. Shortly after discovering bitcoin, McCaleb transformed his company, Mt. Gox, into a bitcoin exchange platform. After transforming the company, McCaleb sold it to Mark Karpeles, who shut the business down a few years later.
Jed McCaleb no longer had a need of Mt. Gox, he had moved on to better things. Jed realized that bitcoin, although it was a great idea, had many flaws. The public ledger system was great, a currency not controlled by government was great, but Jed McCaleb found room for improvement.
With Stellar’s protocol, customers are able to make seamless transactions across national borders. Stellar eliminates the mining process and simply issues coins to people who purchase them. This business model has become increasingly popular in the cryptocurrency world. “I always thought Bitcoin was an amazing idea, but one of the things that bother me about it was this mining process,” said McCaleb.
Stellar works with banking institutions to create faster, more secure payment methods. Stellar primarily works with organizations in underdeveloped countries in Europe and Asia, but they also have a partnership with IBM. McCaleb recently teased their biggest partnership to date. Although McCaleb refused to give away the name of their new partner, he did say that it would put Stellar in a position to become a global network.