Second only to Bitcoin, Ethereum is one of the largest cryptocurrencies by market cap. The coin’s share price on Sunday was hovering around $200 before trending upward for most of the week. The price peaked at $220 before slipping slightly to $212 on Thursday evening.
Ian McLeod of Thomas Crown Art said in an announcement that he believes the trend is going to continue through the remaining weeks of 2018 and have a “global breakout”, reaching highs of $500 before the new year.
Thomas Crown Art, an art-tech agency, uses the Ethereum blockchain and smart contracts to track and verify the authenticity of artwork.
The reason McLeod is confident a global breakout is imminent is down to one factor: oracles.
McLeod said: “Oracles link Ethereum-run smart contracts to the real world and will be responsible for the digital currency to enter an entirely new phase of mass adoption.”
Smart contracts enable individuals to transparently exchange cryptocurrency or shares directly, removing the need and costs of a third party. They can additionally be used as an application to store data on the Ethereum blockchain.
Oracles act as a trusted source, delivering more information into these smart contracts. This will eliminate the need for smart contracts to access information outside of its regular network. Companies from a variety of sectors can benefit from this development, says Thomas Crown Art.
“For instance, they can help insurance companies with pay-outs on flight delays, sports betting firms with result information coming from various trusted sources and can help us in the art world by conclusively proving the provenance of artwork quickly and easily” said McLeod.
Over the next five years, as more people join the crypto space, McLeod expects Bitcoin to lose half its market share to Ethereum.