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This is some function in some contract. Using this type of function like transfer and transferFrom in the DAO contract, use can transfer their tokens to another account or contract. But how can ethereum recognize this type of transfer? Does it convert token transfer to ether transfer or someting else.

How does this type of transfer code be compiled and how does EVM handle this.

How does this type of transfer differ from the normal ether transfer?

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Got it. Actually, function like transfer and transferFrom is self-defined function in contract. Token transfer is just the value change in contract. It won't be converted to any function like send, which can only send ether.

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