Blockchain is the technology that underpins cryptocurrencies like ether and bitcoin. Also known as distributed ledger technology, blockchain is a continuously growing log of data that is decentralized, meaning it is not governed by any central authority.
“The news that Ethereum is being used as a base identity layer in conjunction with some of the larger banking giants out there is a positive ratification of the technology,” Charles Hayter, chief executive of digital currency comparison site Crypto Compare, told CNBC in an email.
Bitcoin, the world’s largest cryptocurrency, made its debut on a major futures exchange Sunday. Hayter said that bitcoin’s move into a more conventional markets may lead investors to believe Ethereum to be the next big listing on Wall Street.
“Ethereum as a clear number two in the space is an obvious choice to receive the same treatment and have futures listed. It would be no surprise if these plans were already in the works.”
The cryptocurrency market has received unprecedented attention from investors this year. The total market capitalization of all digital assets currently stands at $466 billion, according to Coinmarketcap data.
“The strong rise in bitcoin has brought a lot of new individuals to the space — they will naturally be looking to replicate returns and Ethereum, which has been in the doldrums comparatively, might look like a good bet for some yield,” Hayter added.