I've been reading about Ethereum and it's fundamentals for a while now. I wonder what is difference between Ethereum and InterPlanetary File System ?
In simplest terms: Ethereum is a blockchain based smart contract platform, while IPFS is a distributed, content-addressed file system.
It's like Bitcoin and Bittorent. One is blockchain, another is peer-to-peer file sharing distributed system.
Ethereum is like a foundation with it's own currency Ether1. Foundation gives you an ability to build your own decentralized applications using Smart Contracts. There is a myriad of use cases for it.
Ipfs in many cases is used alongside Ethereum because data storage is very expensive in blockchain, but storing hash (ipfs address) is much cheaper and ipfs file system is distributed.
1. Developers and users can not only exchange this currency, but use it to pay for any computations which occur during interaction or deployment of Smart Contract.
Ethereum is a blockchain technology which uses IPFS under the hood for it's decentralised and distributed needs like global broadcast of transactions,blocks and saving those mined blocks on their respective nodes. For this type of storage needs, Ethereum uses customised IPFS and other protocols like libP2P.