I am reading a book on ethereum and I saw this:

Only externally owned accounts have a corresponding private key. Private keys are used for signing new transactions sent to the network as a means of authentication. Smart contracts cannot initiate new transactions, so there is need for them to sign any operation.

If smart contracts have no keys, cannot sign transactions, how can they then be used to transfer or move funds? Because i believe moving funds requires a signed transaction

1 Answer 1


Contracts run in the Ethereum Virtual Machine that has several opcodes that can be used transfer ether CALL, SELFDESTRUCT, CREATE, CREATE2. These opcodes allow the contract to transfer funds without a signature.

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