Jed McCaleb Makes the Unbanked Bankable

Jed McCaleb cofounded Stellar to help increase economic participation for everyone. Stellar is an open source financial network that connects institutions around the world. Co-founded in 2014 by Joyce White and Jed McCaleb, Stellar hopes to bring the maintenance cost down for providing financial products to low-income customers. Jeb McCaleb also thinks his network can decrease the costs and increase the efficiency of money transfers by connecting the various institutions.

 

Stellar is attracting the interest of developing countries as they are home to the most of the unbanked population resides, currently there are about 2.5 billion people in this group according to the statistics of the World Bank. By lowering the costs associated with low-income accounts through a distributed database throughout the institutions using Stellar, they are more likely to provide financial products to those they normally wouldn’t consider being customers.

 

Open source at the core, Jed McCaleb’s Stellar is almost completely run and maintained on the client side and the open source software allows clients to customize the code to meet their particular needs. Jed McCaleb based his network on Bitcoin’s technology but didn’t want to create a new cryptocurrency or work with a current one. As the creator of Mt. Gox, a Bitcoin exchange, Jed McCaleb is familiar with creating technology that works with currency. He also created eDonkey, an early peer to peer file sharing service. The network keeps evolving to have less and less of the operations done internally in the community. Stellar is funded by Stellar.org, which not only promotes open source tech, it also supports financial literacy. Stellar is not the only thing the website funds, it supports a variety of open source projects.

 

As the demand increases, Stellar’s infrastructure keeps getting improvements. Jed McCaleb and Stellar want to keep making the network more modular, scalable, and secure. It has already been implemented in several businesses, non-profits, and financial organizations.