What is ethereum and how does it differ from Bitcoin?

Ethereum is a rising star in the cryptocurrency world. It has quickly become the second largest digital currency in just over two years, booming in value and spurring the rise of hundreds of new rivals to Bitcoin.

Launched in 2015, the value of ether (ethereum's currency) has increased rapidly. It suffered a set back before Christmas 2017, suddenly dropping from $850 to around $690 - a drop of about 20 per cent. Since then it has continued to show intense volatility, hitting highs of $1400 in January before slumping to less than $750.

Last year saw months of increase in the price of Ethereum and rival cryptocurrencies like Bitcoin and Litecoin. At the start of 2017, one coin was worth around