What are Transactions?

The term "transaction" is used to refer to the signed data packet that stores a message to be sent from an externally owned account to another account on the blockchain. It can be divided into two main categories.

Value Transfer

  • A value (in Ether) is transferred between two externally owned accounts.

Execution of Contracts

  • Here, a function/method call is made from an externally owned account to a contract account. Such transactions can be chained further, for example, the contract account may do several internal transactions before calling or returning another contract account. Executing any type of transaction on Ethereum costs money or fees.

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