How are Smart Contracts Executed?
Smart contracts on the Ethereum blockchain are self-executing contracts with the terms of the agreement directly written into code. They operate on the Ethereum Virtual Machine (EVM), ensuring that they execute consistently across all nodes in the network. The execution flow involves several key steps:
- Deployment: Developers write smart contracts using languages like Solidity and deploy them to the Ethereum blockchain. This deployment creates a unique address for the contract.
- Triggering Transactions: Smart contracts are triggered through transactions. Users send transactions to the contract's address along with Ether (ETH) if required, which activates the contract's functions.
- Consensus Mechanism: Ethereum employs a proof-of-stake consensus mechanism (Post-Merge) to validate and agree on the execution of smart contracts across the network. This ensures that all nodes reflect the same state of the contract.
- Execution: Once triggered, the EVM processes the smart contract code. It reads the state and executes the necessary operations, modifying the blockchain state as specified in the contract.
- Finalization: After execution, the transaction is added to a block. The outcome is recorded on the blockchain, ensuring transparency and immutability.
By automating processes, smart contracts reduce the need for intermediaries, enhance security, and streamline transactions on the Ethereum platform.