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The Ethereum has been created to initiate smart contracts via a networking among peers.Smart contract is a computer code that was developed by the programmers to utilize their own functions. High-level programming is a term for them wherein they use scripts coded in Serpent, LLL, or Solidity. In the context of a Blockchain, smart contracts is similar to an autonomous pc with auto functions upon meeting deisred criteria.
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Bitcoin was the first to support basic smart contracts in a way that the network can transfer value from one person to another- but the network of nodes will only validate transactions if certain conditions are met. Bitcoin is limited to currency use only though, but Ethereum has a language that allows developers to write their own programs.
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