Articles on: Eli5

Eli5: What are internal transactions?

Okay, imagine Ethereum is like a magical playground where you can make things happen with the help of computer programs called smart contracts. These smart contracts are like little wizards that do things automatically when someone triggers them.

Now, when people play with these smart contracts on the Ethereum playground, it's like casting spells that create secret actions or moves within the playground itself. We call these secret actions "internal transactions." They're kind of like hidden moves that happen behind the scenes.

These internal transactions don't have a special signature, and they're usually kept in a secret part of the playground, not on the main stage. Some are even stored on the main stage but it takes extra magic to do that. These secret moves mostly involve the playground's special money called Ether, and they can change how much Ether different places have. So, in a nutshell, internal transactions are like the secret, behind-the-scenes magic moves that happen when people use smart contracts in the Ethereum playground.

Updated on: 02/01/2024

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