Adam Ludwin
@adamludwin

1) I’m thrilled to share that Chain is joining forces with Stellar!

Official announcement: medium.com/interstellar/a…

This thread explains why we did it.

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2) First a few facts. The combination was structured as an acquisition of Chain by Lightyear, a company founded with the support of the Stellar Development Foundation last year.

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3) We are re-naming the combined company Interstellar. Interstellar is a for-profit company that will create products and services to make it easy for enterprises to use and build on the Stellar network.

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4) I will be the CEO of Interstellar. Stellar’s founder, Jed McCaleb, will be our CTO. Side note: I am so excited to be working with Jed!!

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5) So why did Chain do this? Because it is the best way to continue to pursue our mission of digitizing the world’s financial assets so they can move freely over the internet. Most people now refer to this idea as “tokenization” (I like that word, too)

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6) When we started Chain, the only network that existed was Bitcoin. Tokenizing assets on Bitcoin was (and is) technically possible, but it’s a serious hack and not what Bitcoin is designed to do.

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7) Once Ethereum launched, we seriously considered using it for tokenization, as many have done. But it, too, is ultimately not optimal for asset issuance and transfer. Its power lies in its potential for decentralized applications – but that is not our mission.

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8) And so we did what you do as a start-up: built for the market and met our customers where they were, which meant designing a permissioned model to deploy inside and between enterprises. It met the scale and governance needs of our customers that allowed us to make progress.

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9) But we never gave up on public networks... we were always planning to either build our own or identify the network that was the best fit for tokenization.

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10) And by late last year, it became clear to us that network was Stellar.

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11) Stellar is designed specifically for tokenizing assets, which anyone can do by being an anchor on the network. It has a built-in order book for decentralized asset exchange. Its consensus model, SCP, strikes the right balance between decentralization and trust.

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12) As Jed and I talked about teaming up, I discussed the idea with our major customers. As I described Stellar’s model, they were overwhelmingly supportive of us taking this step, giving me the confidence that the enterprise market was ready to take public networks seriously

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13) And it’s a perfect fit: Chain’s software ends where the Stellar network begins. Not every transaction needs to go over a public network. Moving balances between local accounts can happen on a private ledger. Transferring between two institutions can then occur over Stellar

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14) We see this as a convergence – a long time coming – between the so-called “private” and “public” blockchain worlds. It was always a false dichotomy when it comes to issued assets. You need both.

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15) We’ll be sharing a lot more about Interstellar in the days and weeks ahead. But will pause here with a huge thank you to the Chain and Lightyear teams, and to Chain’s incredible investors and partners.

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16) You can follow @go_interstellar and visit interstellar.com to track the news and progress.

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