Interstellar Borns: Chain to Join Hands with Stellar Protocol
For a long time, there have been rumors that two of the crypto industry's leading entrepreneurs were coming together to back the world's sixth-largest blockchain. This is no more a rumor but has been confirmed!
Chain, which raised investments worth more than $40 million from financial institutions including Visa and Nasdaq has been acquired in a confidential deal by a startup building on the Stellar protocol, Lightyear.io.
Officially concluded on 5th September, as a part of the deal, both brands will be combining in order to form a new organisation called Interstellar which will be influenced by former RRE Ventures partner and Chain CEO Mr. Adam Ludwin who will be present as Interstellar's CEO, and Jed McCaleb, the initiator of XRP and Stellar protocols who will play the role of CTO.
"Ripple is focused on international B2B networks, being crypto Swift for banks. Stellar has increasingly become the platform of choice for issuing tokens of all kinds."
As stated by Ludwin, the company will keep possession of 100% of Chain's employees, including the co-founder Devon Gundry, who will continue as chief product officer. Altogether, approximately 60 employees are now working for Interstellar, Ludwin said.
Since the terms of the deal have not yet been disclosed, Ludwin said in an interview that all shares were acquired and that it was a good deal for the early investors. Earlier predictions estimated that the deal was valued at about $200 million.
Also, Ludwin suggested that the acquisition by Lightyear should not be looked upon as a shift in the direction even though Chain's work is mainly focused on private blockchains.
According to Ludwin, Chain got "Stellar envy," when the open-source project was achieving its goal of creating a platform that could be perform well at asset allocation.
McCaleb faced another problem during that time, Ludwin said. Since it was managed by non-profit Stellar Development Foundation, the protocol's coders were focused on finding institutions that would help them to commercialize their work.
Ludwin also stated that Interstellar is not planning to play an active role for the Stellar cryptocurrency, XLM, the reason being that Interstellar is a "software" play. He continued saying that it all about the platform layer for making the network as powerful and useful as possible for the companies which want to utilize Stellar.
Issues Before Joining Hands
In 2018, McCaleb first approached Ludwin for a meeting. Ludwin said that even though they were familiar with each other since 2014, they "didn't know each other super well". Also, that the early meetings were mainly focused on establishing relations.
"I have a certain public reputation, he has a certain public reputation. As usual, what you think about someone based on their public persona and who they actually are are drastically different, and we decided that after four to five weeks, let's do this together," Ludwin said.
Although it remained unclear, according to details, Chain was in discussions to be obtained by a company which was affiliated with Stellar in May.
The two companies analyzed several ways for forming the deal, Ludwin confirmed. Also, he failed to confirm the news that whether any cryptocurrencies were liquidated to make the acquisition easier.
Ludwins said "Have we experimented with approaches? Heck yeah, but if you're in this industry and you havenít, you're not likely to get it right on the first stab."
Not Just Another "Ripple" Coin
Ludwin wanted to distance Interstellar from McCaleb's efforts, Ripple, a company in which McCaleb was the founder and CTO before the relationship was affected by legal battles.
Ludwin specifically said that Interstellar would want to work with the Stellar Development Foundation in order to grow the software with other profit-seeking start-ups.
He said, "Ripple is focused on international B2B networks, being crypto Swift for banks. Stellar has increasingly become the platform of choice for issuing tokens of all kinds."
But even then, Ludwin said that like Ripple, the upcoming new company will work and bring open-source software to the organization which already had projects established by Chain.
He continued further saying that Interstellar will continue using its cloud blockchain service Sequence, which was introduced last year. Not only this, but it will also use the technology behind its Chain Protocol (a set of tools for enabling private blockchain networks, launched in 2016.)
He also stated that the products will be used along with software from Stellar's non-profit arm that would enable the company to work with both networks, private and public.
He said, "What you're going to see from Interstellar is a convergence of the two. Where it makes sense to have assets in a private environment, we'll use Chain's products, when it makes sense for these assets to be transferred over a network, we'll use stellar," then added:
"You don't think I'm on a public network or I'm on a private network, I'm on my computer, doing work."
The third time it is!
Ludwin described his journey as of an entrepreneur who worked closely with blockchain and cryptocurrencies, in an interview, which can undoubtedly be viewed as the third version of the vision he started pursuing back in 2014.
During the initial stage, Chain was mainly all about providing products for bitcoin developers, also coming up as a well-financed competitor to early start-ups of Silicon Valley such as Gem and Coinbase.
Chain later raised about $30 million from reputed financial institutions in 2015. It was also found that the company was seeking to rather become the partner for businesses that had the target to leverage blockchain in order to make new products.
Ludwin said that the his goal, at at all times has been to enable a platform which, with the help of cryptography and peer-to-peer networking, facilitate in the creation of news assets like bitcoin on the bitcoin blockchain.
Ludwin commented that he's being more aggressive in chasing this vision and is willing to get through all the twist and turns of tech industry's sectors.
Concluding, Ludwins said "Have we experimented with approaches? Heck yeah, but if you're in this industry and you haven't, you're not likely to get it right on the first stab."