Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily functions as a digital currency, Ethereum offers a flexible framework for creating a wide range of applications utilizing its built-in programming language, Solidity. This allows developers to program self-executing contracts that automatically enforce agreements, enhancing efficiency and trust in digital transactions.

The Ethereum network operates on a blockchain, where multiple nodes (computers) work together to maintain a tamper-proof ledger. Transactions on the network are grouped into blocks and added to this ledger through a process called mining or consensus. As Ethereum evolves, it is transitioning from the energy-intensive Proof of Work (PoW) consensus mechanism to a more sustainable Proof of Stake (PoS) system, which aims to improve scalability and reduce energy consumption, making it more accessible for users worldwide.

Ethereum, a decentralized platform that enables the creation of smart contracts and decentralized applications (dApps), has significantly transformed global finance. By facilitating peer-to-peer transactions without the need for intermediaries, Ethereum has reduced costs and increased the efficiency of financial operations. The introduction of decentralized finance (DeFi) applications on the Ethereum blockchain has allowed individuals to borrow, lend, and trade assets directly, democratizing access to financial services and challenging traditional banking systems. For instance, platforms like Uniswap and Aave exemplify how Ethereum is reshaping liquidity provisioning and lending protocols, making financial transactions more accessible to people worldwide.

Moreover, the integration of Ethereum's blockchain technology has led to increased transparency and security in financial transactions. Businesses and innovators are leveraging smart contracts to automate complex processes, minimizing the risk of fraud and eliminating the potential for human error. Additionally, the rise of non-fungible tokens (NFTs) on the Ethereum network has opened new avenues for investment and ownership in various sectors, from art and entertainment to real estate. As Ethereum continues to evolve and scale, its impact on global finance is set to deepen, offering a glimpse into a future where financial interactions are governed by trustless protocols rather than centralized authorities.

Ethereum and Bitcoin are two of the most prominent cryptocurrencies, but they operate on fundamentally different principles. While Bitcoin was introduced in 2009 as a decentralized digital currency designed primarily for peer-to-peer transactions, Ethereum, launched in 2015, expands on this concept by offering a platform for decentralized applications (dApps) and smart contracts. These smart contracts are self-executing contracts with the terms of the agreement directly written into code, allowing developers to create complex applications that run on the Ethereum blockchain, thus enabling automation and reducing the need for intermediaries.

Another significant difference lies in their consensus mechanisms. Bitcoin relies on a proof-of-work system, where miners validate transactions and secure the network by solving complex mathematical problems, leading to high energy consumption. In contrast, Ethereum has been transitioning to a proof-of-stake system, which requires validators to hold and 'stake' their coins to secure the network, significantly lowering energy costs and increasing transaction speeds. This shift not only makes Ethereum more energy-efficient but also aligns with its goal of being a versatile platform for a wide range of applications, from finance to gaming, setting it apart from Bitcoin’s singular focus as a digital currency.