Chapter 15: Ethereum: Internal Transactions & Token Transfers Explained

by Bruno Škvorc

When using various Ethereum blockchain explorers like Etherscan to inspect addresses, you may come across certain addresses which have Transactions, Internal Transactions and Token Transfers. To understand the difference between them, we first have to understand the concept of external and internal addresses on Ethereum.

External and Internal Addresses

There are two types of addresses (accounts) in Ethereum: External and Internal.

When a user creates an address, that's called an external address because it's used for accessing the blockchain from the outside — from the “user world”.

When you deploy a smart contract to the Ethereum blockchain, an internal ...

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