A Short History of Ethereum

Ethereum provides an instuctive aspect of blockchains, including a more generalized aspect of smart contracts that is useful.

Blockchain: A Very Short History Of Ethereum Everyone Should Read
in Forbes   By Bernard Marr

Even those who are not familiar with blockchain are likely to have heard about Bitcoin, the cryptocurrency and payment system that uses the technology. Another platform called Ethereum, that also uses blockchain, is predicted by some experts to overtake Bitcoin this year.

What is Ethereum?

Ethereum is an open-source, public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. There are two accounts available through Ethereum: externally owned accounts (controlled by private keys influenced by human users) and contract accounts. Ethereum allows developers to deploy all kinds of decentralized apps. Even though Bitcoin remains the most popular cryptocurrency, it’s Ethereum’s aggressive growth that have many speculating it will soon overtake Bitcoin in usage.

How is Ethereum different than Bitcoin?
While there are many similarities between Ethereum and Bitcoin, there are also significant differences. Here are a few:
Bitcoin trades in cryptocurrency, while Ethereum offers several methods of exchange including cryptocurrency (Ethereum’s is called Ether), smart contracts and the Ethereum Virtual Machine (EVM).

They are based on different security protocols: Ethereum uses a ‘proof of stake’ system as opposed the ‘proof of work’ system used by Bitcoin.

Bitcoin allows only public (permissionless or censor-proof) transactions to take place; Ethereum allows both permissioned and permissionless transactions.
The average block time for Ethereum is significantly less than Bitcoin’s; 12 seconds versus 10 minutes. This translates into more block confirmations which allows Ethereum’s miners to complete more blocks and receive more Ether.

It is estimated that by 2021 only half of the Ether coins will be mined (a supply of more than 90 million tokens), but the majority of Bitcoins already have been mined (its supply is capped at 21 million).

For Bitcoin, the computers (called miners) running the platform and verifying the transactions receive rewards. Basically, the first computer that solves each new block gets bitcoins (or a fraction of one) as a reward. Ethereum does not offer block rewards and instead allows miners to take a transaction fee. ... "