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Stellar’s McCaleb: You need a lot of participants to see benefits of open-network like Stellar

Priya

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Stellar's McCaleb: You need a lot of participants to see benefits of open-network like Stellar
Source: Unsplash

This week’s main headline was taken by Stellar Lumens [XLM], the eighth largest cryptocurrency by market cap, with news of its listing on Coinbase.com and its collaboration with IBM, a multinational information tech company. Stellar and IBM announced the launch of World Wire, which is going to focus on cross-border, real-time transaction settlement. The solution will be introduced in over 50 countries and will be supported by the Stellar protocol.

Jed McCaleb, the co-founder of Stellar.org, spoke about IBM World Wire in an interview session at the Money 20/20 conference. He also spoke about the impact it would have on the US markets in particular and his opinion on stablecoins.

On IBM World Wire, he stated that this product allows banks and financial institutions to issue digital assets on a common platform “that can be interchanged between each other”. He further stated that it allows users to send currency A, which can later be converted to currency B, enabling a “much more seamless” way than the traditional means around the globe.

McCaleb also spoke about the impact World Wire would have on the US market. He said:



“So, I mean, for a common person in the U.S, its not that impactful but for anyone that does a lot of international transfers, like maybe have a relative overseas, then it will matter a lot”

This was followed by McCaleb speaking about stablecoins, taking into consideration Facebook’s recent announcement of launching one. On this, McCaleb stated that he preferred the terms “fiat token” over “stable coin” as there were a lot of currencies involved, and “maybe they were not so stable”. He added,

“[…] the future will be this world where people are using digital representations of value whether its fiat currencies or gold […], it should all be kind of tokenized. […] [this] gives you all kind of the power benefits that cryptocurrencies has […] and everything is interoperable. So, its just a much better state-of-affairs than what we have today.”

Furthermore, McCaleb also spoke about the big challenge they faced and what he was “most concerned” about in the financial services for 2019. He stated that creating this [World Wire] network was their big challenge, adding that IBM was a great partner in this regard. He said,

“What they [IBM] are doing is bringing a whole collision of people together in one swoop rather than trying to do it just one-off because none of these attempts really work if you just have one or two players, you really need a lot of participants to start to see the benefits of an open-network like Stellar.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin’s [BTC] security is 100 times more than that of Bitcoin Cash’s [BCH], says Litecoin creator

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Bitcoin's [BTC] security is more than a 100 times than that of Bitcoin Cash [BCH], says Litecoin creator
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Charlie Lee, Creator of Litecoin [LTC] and Managing Director of Litecoin Foundation, spoke about projects that allocate mining rewards to developers, in an interview with Laura Shin for Unchained Podcast. He also opined about whether Litecoin’s vision still remained the same or not.

On projects that allocate a percentage of the block reward to developers, Lee stated that it was “okay” as long as the project developers were transparent on this subject, adding that in some cases, this was “needed”. He further stated that it was hard to find developers for Litecoin since, there were not enough funds to pay these developers.

[…] we work on raising money and using money to pay for developers but unlike ICOs or other projects we just don’t have millions sitting from selling our ICO tokens to fund these developers. So, yeah I think projects that do that it’s kind of needed […]”

However, Lee stated that for cryptocurrencies such as Bitcoin and Litecoin that really want to become decentralized money, there cannot be any centralized actions like using mining rewards to pay developers.

This was followed by Lee speaking about Litecoin’s vision and the coin’s use case. On this, Lee stated that the current vision was still “very similar” to the old one, seeing Litecoin as a complement to Bitcoin. He added that Litecoin’s raison d’être was not to replace Bitcoin, unlike some other coins that claim to be the better version of Bitcoin.

“[…] I think it’s trade-off. So, a lot of people don’t talk about the trade-offs people talk about how they have fees are cheaper […] people in support of Bitcoin Cash constantly talk about how Bitcoin Cash transaction fees are like a hundredth of that of Bitcoin but, you get what you pay for right […]”

He further added that Bitcoin’s “security was more than hundred times” that of Bitcoin Cash, irrespective of the hash rate being more or not. Lee remarked that one cannot “attack Bitcoin,” whereas Bitcoin Cash could be “eas[ily] be attacked,” adding that this factor was very important and also the reason for cheaper fees.



“[…] same for Litecoin alright. Litecoin is cheaper and the security is less than Bitcoin […] so people who actually move lots of money they would want to use Bitcoin and I think that’s fine like Litecoin can compliment Bitcoin perfectly fine […]”

Lee stated that this was the reason he agreed with Lightning Network, arguing that it was good for both Bitcoin and Litecoin. He stated that Lightning not only helps them scale, but also enables cross-chain atomic swaps, allowing people to swap two different coins instantly and easily in a decentralized manner.





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