The banking industry is rapidly changing with the popularity of cryptocurrency growing by the day. Jed McCaleb has been on the forefront of this technology since the beginning after founding one of the first Bitcoin exchanges known as Mt. Gox. This experience led him to discover the potential value of some of the technology involved in cryptocurrency in government-backed currency banking. Blockchain technology is implemented in Jed McCaleb’s newest endeavor, Stellar Financial Network. Stellar hopes to expand banking to untapped markets and lower income individuals around the country and the world.
While cryptocurrency is gaining popularity and has potential, there are still problems with the technology such as extremely slow transaction processing time. This wait can take even longer during periods with a lot of traffic. With the Stellar network that uses both cryptocurrencies and government-backed currencies, the transactions in question take 5 seconds or less to complete.
Cryptocurrency technology has been proven to be immensely useful when it comes to cross-border transactions and Stellar aims to make this process even easier and less expensive. Most importantly, it will allow people who previously were unable to access financial institution services to get involved in the world of banking.
In the 4 years that Autonomous Next studied the sales of cryptocurrency, they discovered that the sales reached right under $9 billion in around 4 years. Unfortunately, cryptocurrency has experienced a fair share of fraudulent transactions and fundraisers that result in investors never seeing results. These problems are being addressed extensively through blockchain tokens.
Jed McCaleb predicts that the next 10 years will bring blockchain technology to all forms of equity as a method of protection. Many different startups are working on ways to bring token technology to long-standing financial markets in order to allow users to perform transactions such as buying stocks using cryptocurrency.
Cryptocurrency and the technology behind it are making a lot of waves in the financial industry both in investing and transaction purposes. With developers like Jed McCaleb looking to integrate the methods and make them secure and private, cryptocurrency may see exponential growth in the upcoming years.