Internal transactions and token transfers are essential components of the Ethereum blockchain. In this article, we'll explain what internal transactions and token transfers are and how they work in Trezor Suite.
An Ethereum internal transaction is an off-chain event that occurs when a message call is executed via a smart contract, for example, distributing tokens among multiple parties. These transactions do not have cryptographic signatures and are not recorded on the main Ethereum blockchain. To monitor the effects of internal transactions, a specialized node designed for tracking such off-chain events must be employed. These nodes enable users to view the results of the value transfer or contract call that otherwise remain off-chain..
Internal transaction are named based on the parsed method name:
- The most common internal transaction is the Transfer method, which transfers tokens between accounts
- Commit is used to commit changes to a smart contract
- Set addr is used to set the address of a contract
- Mint is used to create new tokens
These methods are defined by the smart contract and can be used for a variety of purposes, depending on the design of the contract.
Token transfers are transfers of tokens between addresses on the Ethereum blockchain. Tokens can be transferred between any two addresses, whether they are user-controlled accounts or smart contracts.
Token transfers are currently available for ERC20, ERC721, and ERC1155 tokens. These tokens are commonly used in decentralized applications (dApps) built on the Ethereum blockchain.
For more information about using dApps with your Trezor check out this article about MetaMask and Trezor.
The Inputs/Outputs section presents a clear display of internal transfers and token transfers, enabling a straightforward comprehension of how the transaction is transferring value across diverse addresses. When examining Ethereum transactions, comprehending the internal transactions and token transfers that occur during the process can be advantageous.
To aid in this, the Ethereum transaction detail page features an "Analyze in Blockbook" banner that permits users to observe the intermediate steps in the transaction.
Additionally, tokens are now sorted based on three rules: USD balance (highest first), length of name (shortest first), and alphabetically.
Understanding internal transactions and token transfers is essential for anyone working with Ethereum transactions.
By taking the time to understand these concepts and utilizing the tools available for analyzing transactions, users will have more intormation about thier transaction and make better-informed decisions when working with the Ethereum blockchain.