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Crypto Terms:  Letter E

What is Ethereum Transaction?

Meaning:
Ethereum Transaction - Ethereum transactions are cryptographically signed instructions from accounts that are used to initiate transactions that affect the state of the Ethereum network.
easy
2 minutes

Let's find out Ethereum Transaction meaning, definition in crypto, what is Ethereum Transaction, and all other detailed facts.

The most simple transaction could be described as transferring Ethereum-based assets from one that happens from one ETH account to the other.

On the Ethereum blockchain, users may conduct three sorts of transactions. A typical transaction in which an Externally Owned Address (EOA) delivers ETH to another EOA. Token transfers are transactions involving ERC-20 or ERC-721 tokens. An internal transaction is an ETH transfer that is facilitated by a smart contract acting as an intermediary.

From a cryptocurrency perspective, an Ethereum transaction is the action that is emphasized by an externally-owned account, controlled by a human and not a contract.

For example, if Stacy sends 5 ETH to Jennifer, her account must be debited and Jennifer's account must be credited. When this state changes, an action is taken in the form of a transaction. Based on Ethereum’s regulations of consensus, the network confirms the transaction as a valid one and then gets added to a block that is then added to the blockchain.

Speaking of terminology, the gas limit is the maximum amount of gas that may be consumed by a transaction. The gas price is the amount of money that the sender will pay for each unit of gas. A nonce is a sequence number that is unique to each sender and must fit the next accessible sequence number.

Furthermore, the value represents the amount of Ether to be sent from the sender to the recipient, which might be zero. In contrast, the receiver is the account address to which the transaction is ultimately transferred.

Finally, the data is an extra arbitrary binary data, where the contract's bytecode is delivered throughout the contract implementation.

smart contracts<\/strong><\/a>&nbsp;happen.<\/p>\n<p>The EVM's purpose is to add a number of new processes to the blockchain so that users have fewer problems with the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-distributed-ledger/">distributed ledger<\/strong><\/a>. To ensure blockchain consensus, every Ethereum node runs on the EVM. <strong>The code inside the EVM is entirely isolated<\/strong>, which means it has no access to the network, file system, or any other processes.<\/p>\n<p><strong>Externally Owned Accounts (EOA) and<\/strong> <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-contract-account/">Contract Accounts<\/strong><\/a> are the two types of accounts that are recognized equally by the EVM. Account abstraction attempts to convert these two into a single account because EOAs and Contract Accounts are interchangeable and work pretty much the same. Contract accounts are maintained in the smart contracts&nbsp;while EOAs are managed by <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private keys<\/strong><\/a>.<\/p>\n<p>The majority of the source code of smart contracts is written in the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-solidity/">Solidity programming language<\/strong><\/strong><\/a>. A contract written in the smart-contract coding is transformed into what is known as <strong>bytecode<\/strong>. After that, it is transformed into <strong>opcodes<\/strong> that EVM interprets and uses the operation codes to accomplish specific tasks.<\/p>\n<p>Thus, EVM is one of the biggest projects that run in the cryptocurrency world and it acts as a massive decentralized computer that executes various operations on the blockchain.<\/p>","definition":"a Turing-complete blockchain-based software that executes code exactly the way it was intended.","status":"published","meta_title":"What is Ethereum Virtual Machine (EVM)? Definition & Meaning | Crypto Wiki","meta_description":"Ethereum Virtual Machine (EVM) meaning: Ethereum Virtual Machine (EVM) - a Turing-complete blockchain-based software that executes code exactly the way it was intended.","meta_keywords":null}" :prev-section="{"id":863,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Ethereum","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-12-04T04:46:34.000000Z","slug":"what-is-ethereum-request-for-comment-erc","title":"What is Ethereum Request For Comment (ERC)?","section":"E","keyword":"Ethereum Request For Comment (ERC)","content":"<p>Essentially, the <strong>Ethereum Request For Comment (ERC) <\/strong>is a collection of guidelines for data formatting and transmission. These guidelines also dictate what actions will be taken when a specific event occurs. In the sense that it is used to suggest new protocol changes or standards to the network, it is similar to <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-bitcoin-improvement-proposal-bip/">Bitcoin Improvement Proposals (BIP)<\/strong><\/a>.<\/p>\n<h3>The Creation Process of an ERC<\/h3>\n<p>By <strong>submitting a proposal<\/strong> through Ethereum Improvement Proposal (EIP), new ERCs are generated. An EIP is a design document that contains<strong> details on a new feature or procedure<\/strong>. Complete technical specifications and rationale of the proposed feature must be indicated in this document. Following the submission, the community evaluates the documents and expresses its opinion, whether favorable or unfavorable. <strong>Developers create the new ERC<\/strong> once it has received community acceptance.<\/p>\n<h3>ERC-20<\/h3>\n<p>The most popular Ethereum Request For Comment standard is <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-20/">ERC-20. It's specific to Ethereum token implementation, providing developers with the <strong>guidelines<\/strong> they need to generate new tokens within the Ethereum ecosystem.<\/p>\n<p>ERC-20 was developed when <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//who-is-vitalik-buterin/">Vitalik Buterin<\/strong><\/a> and Fabian Vogelsteller needed a way to identify tokens within <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contracts<\/strong><\/a>. The ERC-20 standard was established to ensure that all Ethereum tokens follow a consistent set of rules on the Ethereum network.<\/p>\n<p>Developers can use one token as a building block in another smart contract thanks to the ERC-20 standard, which eliminates compatibility concerns and bugs. Each token used to have its <strong>unique purpose and function<\/strong> prior to the establishment of ERC-20, making it difficult for new initiatives to communicate with existing tokens on the Ethereum network.<\/p>\n<h3>ERC-721<\/h3>\n<p>Another well-known ERC standard is <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-721/">ERC-721. It is a standard that allows the creation of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">non-fungible tokens (NFTs)<\/strong><\/a>. This means that, unlike <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-ether/">Ether or other fungible tokens, each NFT is unique. Developers can use the standard to create new types of digital assets that can be used in various apps, e.g. <strong>crypto games<\/strong>.<\/p>","definition":"\u00a0a set of rules that govern the formatting and transmission of data.","status":"published","meta_title":"What is Ethereum Request For Comment (ERC)? Definition & Meaning | Crypto Wiki","meta_description":"Ethereum Request For Comment (ERC) meaning: Ethereum Request For Comment (ERC) - \u00a0a set of rules that govern the formatting and transmission of data.","meta_keywords":null}" :model="{"id":327,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Ethereum","level":"easy","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-04T04:53:54.000000Z","slug":"what-is-ethereum-transaction","title":"What is Ethereum Transaction?","section":"E","keyword":"Ethereum Transaction","content":"<p>The most simple transaction could be described as transferring <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum-based assets from one that happens from one ETH account to the other.<\/p>\n<p>On the Ethereum blockchain, users may conduct three sorts of transactions. A typical transaction in which an Externally Owned Address (EOA) delivers ETH to another EOA. Token transfers are transactions involving <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-20/">ERC-20 or <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-721/">ERC-721 <\/strong><\/a>tokens. An internal transaction is an ETH transfer that is facilitated by a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/strong><\/a> acting as an intermediary.<\/p>\n<p>From a cryptocurrency perspective, an Ethereum transaction is the action that is emphasized by an externally-owned account, controlled by a human and not a contract.<\/p>\n<p>For example, if Stacy sends 5 ETH to Jennifer, her account must be debited and Jennifer's account must be credited. When this state changes, an action is taken in the form of a transaction. Based on Ethereum&rsquo;s regulations of consensus, the network confirms the transaction as a valid one and then gets added to a block that is then added to the blockchain.<\/p>\n<p>Speaking of terminology, the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-gas-limit/">gas limit<\/strong><\/a> is the maximum amount of gas that may be consumed by a transaction. The <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-gas-price/">gas price<\/strong><\/strong><\/a> is the amount of money that the sender will pay for each unit of gas. A nonce is a sequence number that is unique to each sender and must fit the next accessible sequence number.<\/p>\n<p>Furthermore, the value represents the amount of Ether to be sent from the sender to the recipient, which might be zero. In contrast, the receiver is the account address to which the transaction is ultimately transferred.<\/p>\n<p>Finally, the data is an extra arbitrary binary data, where the contract's <strong>bytecode<\/strong> is delivered throughout the contract implementation.<\/p>","definition":"Ethereum transactions are cryptographically signed instructions from accounts that are used to initiate transactions that affect the state of the Ethereum network.","status":"published","meta_title":"What is Ethereum Transaction? Definition & Meaning | Crypto Wiki","meta_description":"Ethereum Transaction meaning: Ethereum Transaction - Ethereum transactions are cryptographically signed instructions from accounts that are used to initiate transactions that affect the state of the Ethereum network.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens 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Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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