Swanky SWIFT Event Sweats as Heat Applied by Cooler Swell
http://observer.com/2017/10/toronto-fintech-conferences-swift-swell-ripple/amp/The IBM-Stellar deal raised some eyebrows because of the erratic past behavior of Stellar’s founder, Jed McCaleb, who was also the founder of Mt Gox, which turned into bitcoin’s biggest ever fraud, and then co-founded Ripple but was expelled by the board for installing his girlfriend as an executive with no clear portfolio.
IBM is trying hard to make a name for itself in the blockchain space, but this partnership has people puzzled in Toronto. One leading ethereum developer told the Observer, “It’s an also-ran tech company choosing an also-ran token.”
Pressed for an explanation, another developer—a key industry figure and leading cryptographer, who did not want to be identified criticizing a prominent player in the space—detailed to the Observer what he feels is lacking in Stellar.
“It has tech flaws and it has market issues. The tech flaws are that Stellar is hopelessly centralized. They are completely centralized without a plan to decentralize. Worse, their method of adding validators [the mechanism that “unmined currencies” like XRP and XLM use to preserve the integrity of their blockchains] prevents new validators from joining in a meaningful way. New validators become simply trusted repeaters of what Jed says rather than independent validators. In short, they’re effectively stuck as a centralized currency unless they change their fundamental software. So they’ve had zero closed ledgers as a decentralized system, [which means it is] untested. Second, no progress has been made in scaling their blockchain.”...............