Jed McCaleb is well known in the blockchain or cryptocurrency world. He was a large contributor to the Mt. Gox project and the first decentralized peer-to-peer file sharing network called eDonkey. Jed is a firm believer that nothing happens without a solid plan. He came upon his newest project idea by hashing out what the major problems are in the current worldwide banking system and how to best go about solving them. His new project called Stellar does just this.
Jed started the Stellar project in 2014, with co-founder Joyce Kim. Stellar is focused on banking institution connectivity. The project did not result in a currency meant to take over the world. The project focuses on the creation of a worldwide financial network that will enable broad inclusion of banking participants across the globe. The project is meant to bring the costs of banking down enough that institutions can on board whole societies where it is currently too costly to serve much of the population. The project also serves to cut down the costs of currency conversion and other inter-institutional obstacles one may encounter.
The Stellar network makes it much easier and less costly for a merchant in the Philippines to accept live digital micro-payments using Stellar Lumen tokens. The overall plan here is to dedicate capacity to small installment or micro-payments in areas that offer larger payment streams due to the fact that much of the population are not current banking participants. They want to offer easy digital payment systems where traditional banking infrastructure does not exist.
Jed and his team found that giving Stellar its own consensus mechanism gives it the flexibility to be able to process many small transactions quickly, at low cost. The Stellar network has the ability to scale up fast due to the fact that the decision-making process is outside of the core system. The Stellar network and Lumens are already being used all over the world.