What distinguishes Ethereum from Bitcoin?

Ethereum is distinguished from Bitcoin primarily through its ability to support programmable contracts and decentralized applications (dApps). While Bitcoin was created with the primary function of serving as a digital currency, enabling peer-to-peer transactions with a focus on security and decentralization, Ethereum expands upon this foundation by introducing a more versatile platform.

This versatility allows developers to create smart contracts—self-executing contracts with the terms of the agreement directly written into code—enabling a vast array of applications beyond simple transactional capabilities. For example, Ethereum's architecture is designed to facilitate decentralized finance (DeFi), non-fungible tokens (NFTs), and various other decentralized applications, making it a more flexible tool for innovation.

The other options presented do not accurately capture the core distinctions between the two cryptocurrencies. Ethereum does not have a fixed supply, as its issuance can change with network upgrades. Bitcoin, on the other hand, has a capped supply of 21 million coins, creating scarcity. Regarding transaction speed, Bitcoin's transaction per second capabilities are generally lower than that of Ethereum, particularly with recent updates in Ethereum's scaling solutions. Also, while both Bitcoin and Ethereum can support varying levels of privacy, neither guarantees complete anonymity in transactions. Thus, Ethereum's unique capacity for programmable contracts