Ethereum, a decentralized blockchain platform, utilizes accounts to manage and interact with its ecosystem. There are two primary types of accounts:
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Externally Owned Accounts (EOAs)
EOAs are controlled by private keys, giving individuals direct control over their assets and interactions. Think of them as traditional bank accounts, but instead of a bank, you hold the keys. EOAs can:
- Send and receive Ether (ETH).
- Trigger smart contract functions.
Smart Contract Accounts
Smart contract accounts are governed by code deployed on the blockchain. They execute predefined functions when triggered by EOAs or other smart contracts. They are like automated programs:
- Cannot initiate transactions on their own.
- Execute code based on received transactions.
- Can hold ETH and other tokens.
Transactions in Ethereum
Transactions are the lifeblood of the Ethereum blockchain. They represent actions performed on the network. Crucially, there are different types of transactions:
- Creating new smart contract accounts
- Message Calls: Interactions with existing smart contracts.
Every transaction requires a fee (gas) to be executed and included in a validated block. Each transaction includes vital information.
Understanding the difference between EOAs and smart contract accounts is fundamental to grasping how Ethereum functions. They work together to enable decentralized applications (dApps) and complex financial instruments.
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