The original idea of cryptocurrency was to reduce the fees it takes to engage in banking activities and give people a way to exchange money with others all over the globe. This basic concept, though, has largely been forgotten as so many pursue initial coin offerings and crypto projects that widely diverge from this idea. One of the pioneers of the industry, Jed McCaleb, is trying to go back to that original idea with his nonprofit organization, Stellar Development Fund (SDF). The big idea is to providing banking services to people who presently are cutoff from banks.
Stellar Development Funds cryptocurrency is called Lumens (XLM). Unlike other cryptocurrencies getting Lumens is close to free. This is on purpose because it helps to fulfill Jed McCaleb’s goal which is to have his organization advance a number of social causes. He co-founded SDF with the idea that banks and other financial institutions put a number of unreasonable obstacles in the way of regular people using their services, especially those in impoverished nations. He says the global banking system is fundamentally broken and any person or family that doesn’t have enough financial resources is ignored.
The Stellar network is a decentralized platform launched in November 2015. It has both fast and secure transactions, the speed of which also differentiates Lumens from bitcoin. Being nearly free it can help the 2.5 billion people around the globe who have been left behind by banks and financial institutions. By their being able to freely send and receive money it will create better business and employment opportunities for those who have become poor and unbanked.
A big problem for people who are poor and unbanked, as Jed McCaleb describes the problem, is that this leaves them as easy targets to take what little funds they have managed to scrap together. They store cash in their houses which all of the criminals are more than aware of and they know every conceivable place a person would hide this money. By providing easy and very inexpensive access to storing money online Stellar helps people hang onto their money.
Here’s a demo session with Stellar’s Jed McCaleb: https://www.youtube.com/watch?v=GIMOrsPxlZg