Blockchain Basics
The Ethereum Virtual Machine

Transactions

3min

The term “transaction” is used to refer to the signed data package that stores a message to be sent from an externally owned account to another account on the blockchain. Can be categorised 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. These types of transactions can be further chained eg., the contract account can make several internal transactions before calling another contract account or returning back. Any type of transaction execution on Ethereum costs money - or gas.

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