You can think of as a mathematical model for online trust, and it can help drive not only the Stellar network, but all sorts of other online systems that seek to operate without a central authority, from digital currencies to stock markets to email services.
Dan Boneh, a computer science and electrical engineering professor at Stanford who specializes in cryptographic systems, has reviewed the paper, calling it "Pretty interesting." The algorithm, he says, could help build a wide range of online systems that require many machines to securely and accurately work in concert.
That's how the system encourages people to run its network.
As McCaleb explain it, in analyzing how the network is organized, the system can mathematically determine where the weak points are, and then work to shore up those weaknesses.
The rub is that this system doesn't encourage people to add machines to the network in the way that bitcoin does.
Unlike bitcoin, McCaleb points out, Stellar is trying to build a system that handles all currencies, that means its audience is potentially larger, that more organizations will be interested in using it, from PayPal to Wells Fargo.
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