Over the past several years Jed McCaleb has become a fixture of the cryptocurrency industry. There are times that reporters want to get in-depth information about this industry and he is one of the people they turn to in order to find out what is going on and why. A number of years ago he created the first bitcoin exchange, Mt. Gox, as an entrepreneur. He is now the chief technology officer of another company called Stellar Development foundation which is a firm he was a co-founder of in June 2014.
As people may or may not know, bitcoin and all of the other cryptocurrencies are based on a technology called blockchain. This is a decentralized ledger of sorts which can’t be altered. It keeps track of the exchange of digital currencies like bitcoin so that there is a record of who owns what. Jed McCaleb sees huge promise in blockchain and how it can alter how the entire global financial system works. He thinks it will eventually replace how financial transactions are performed in the future and how it will ultimately result in a universal payments network which everyone on Earth can tap into. He said this network will most likely be using government-backed currencies people are used to like the US dollar the EU’s euro.
Jed McCaleb says that his organization Stellar is laying the groundwork for this now. He says one of the biggest problems with bitcoin is that the transaction times can be way too long for any real-world use. Stellar, however, can close out a transaction in less than five seconds. Another advantage with Stellar, he explains, is that it can be converted easily to both the dollar and euro. It is also easy to do cross-border payments with Stellar which is something that IBM started doing recently.
Looking forward, Jed McCaleb stated in an interview that it would come as no surprise to him if other assets start using blockchain. He mentioned the stock markets could be converted in this way. He added that some startups are already trying to get this going such as a new company called Securrency.