Ethereum is a system for decentralized applications that uses blockchains, but in a completely different manner than how they are used in bitcoin. It uses an internal scripting language that is aware of a systems state while being Turing-complete, which means it can encode any computation that may be performed by the system. By including the ability to use internal executable code, far more can be done with it, and that is what the IoT will require. IBM report: Device Democracy: Saving the Future of the Internet of Things”]
Source: https://securityintelligence.com/ethereum-a-second-generation-blockchain-for-the-iot/