Ethereum’s protocol is built to allow flexibility and increase functionality to provide the 
ability to program many different types of smart contracts within the Ethereum system. Ethereum 
is written in Turing complete language, which includes seven different programming languages. 
We’ll note that this is very different from Bitcoin, which is written in C++.
When Ethereum was launched they had an initial offering of ether (the cryptocurrency 
behind Ethereum). The sale of around 60 million ether resulted in raising around $18.5 million 
(Ethereum community, 2016). Additional ether are released via the mining process, similar to 
Bitcoin. The reward per block is 5 ether and remains constant, it does not halve. Also contrary to 
Bitcoin, Ethereum does not have a maximum total number of ether but does cap the amount 
released each year. Ethereum block times are currently at about 14 seconds, compared to 
Bitcoin’s 10 minutes. 
Ethereum also currently operates on a proof-of-work basis. Miners are rewarded for 
processing transactions and executing smart contracts, which create blocks. Ethereum is 
currently working towards changing to a proof-of-stake model which will change the reward 
system dramatically. As we discussed earlier, proof-of-work does not encourage collaboration 
nor does it provide any consequence for malicious behavior. Proof-of-stake will change that.
In a proof-of-stake model there will no longer be miners, but validators. There will no 
longer be cryptographic challenges, the difficult mathematical problems that miners must solve. 
Validators will be required to own ether and in order to validate a block they will be required to 
put their owned ether on the line to certify that a block is valid. This way, if there is malicious 
behavior or a validator does something invalid they will lose their stake, their owned ether. btc to eth

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