Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to keep in mind is that Bitcoin and Ethereum differ substantially in purpose and capacity. Bitcoin offers a particular application of blockchain technology, a point-to-point electronic cash system that allows Bitcoin online payments. While the Bitcoin blockchain is used to track the ownership of the digital currency (bitcoins), the Ethereum blockchain focuses on executing the programming code of any decentralized application.
In the Ethereum blockchain, instead of extracting bitcoin, the miners work to earn Ether, a type of encryption token that feeds the network. Beyond a tradable cryptocurrency, application developers also use Ether to pay for transaction fees and services on the Ethereum network.
Ethereum allows developers to build and deploy decentralized applications. A decentralized application or Dapp have a particular purpose for its users. Bitcoin, for example, is a Dapp that provides its users with a point-to-point electronic cash system that allows Bitcoin online payments. Because decentralized applications are composed of code that runs on a blockchain network, they are not controlled by any individual or central entity.