With the ever-evolving technology and internet, privacy and data security have been a prime concern for the users. Governing authorities and governments imposing censorships on the internet and big institutions are accused of selling user data and compromised security is a big issue.
To eliminate the central authority or a central server system peer-to-peer networking system was invented. In peer to peer computing each participating party acts as a node and send/receive data. There is no central administration to block or hold transactions.
Bitcoin and Ethereum are two decentralized and peer-to-peer networking concept based on cryptocurrency.
Block chainBlock chain is the distributed database system that acts as a public ledger and both Bitcoin and Ethereum are built upon it.
Ethereum is a computing network that runs smart contracts. Smart contracts are self-executing contracts that are agreed by buyer and seller and directly written into the lines of code. The code is stored in a decentralized distributed database system called a blockchain.