Ethereum is one of many digital currencies which make up the cryptocurrency craze. Trader Brian Kelly explains why this currency is here to stay along with the other two investor favorites, Bitcoin and Ripple.
Ethereum is a blockchain platform which allows developers to build on and hosts smart contracts which can be used to transfer money. The network is powered by an underlying cryptocurrency: ether.
In an interview with CNBC, Kelly said:
“Ethereum really has been a big performer so what do we have here? We have a software upgrade, for those of you who know what’s going on, it’s the Caspar Tesnet came out on January 1st.”
He continued, “…what does that mean? It’s an upgrade to the ethereum software in a sense, what does it do? It’s the first step toward moving away from energy intensive mining.”
Currently, Ethereum relies on a Proof of Work system where miners need to solve complicated algorithms to keep the network running. The new year upgrade to a ‘proof of stake’ system will make everything faster, easier, and cheaper as the network continues to grow.
