Anyone who has an interest in bitcoin and other cryptocurrencies likely already knows who Jed McCaleb is. A person who is involved in bitcoin in even the smallest amount should learn about Jed McCaleb and study his thoughts and ideas on the industry.
Jed McCaleb is highly respected, not just among bitcoin pioneers but among the entire tech world. His career began around the same time the internet got popular – the late nineties and early 2000s. As a competitor to Napster, eDonkey, one of McCaleb’s early companies, created a more efficient way to transfer files from person to person. McCaleb’s first time working with blockchain was with his company Mt. Gox, which began as a video game asset trading platform. McCaleb transformed it into a bitcoin exchange platform when he discovered blockchain.
McCaleb’s current company Stellar is also in the blockchain industry. Stellar Began as a non-profit organization, handing out its currency to a multitude of individuals at no cost.
McCaleb shared his thoughts and theories behind blockchain at the Tel Aviv Fintech Week. The four day event consisted of a lecture and Q&A session with McCaleb and fellow blockchain innovator Yoni Assia. The event was held at Rise, a building created by Barclay’s Bank in 2016.
“Stellar is an open protocol for payments,” began Jed McCaleb as the lecture began. McCaleb laid out the differences between Stellar and other cryptocurrencies. The most important difference that separates Stellar from the rest of the crowd is real asset representation. Unlike most crypto, each piece of Stellar’s currency is a representation of real world assets. Stellar wants to be real enough to not fail. Stellar also differentiates itself from other blockchain companies because they don’t utilize data mining processes. As previously mentioned, Stellar’s currency was original given away for free.
According to McCaleb, he also opened up to the crowd, asking for questions. Ultimately the crowd began asking McCaleb about the decentralized process of crypto and McCaleb counter-argued that decentralization isn’t always the best option.
“Decentralized systems don’t scale well,” McCaleb said. “You need to have a certain amount of centralization to scale.”