What is Contract Account? | CryptoWallet.com

What is Contract Account?

A contract account is a separate account that forms the means of interaction between various Ethereum smart contracts and contract stakeholders. 

To create a stable and fluid means of conducting business on the Etherum network contract accounts are used. Once stakeholders create a contract and accept its specified conditions a ‘contract account’ is created. In a sense, this contract account is ‘outside’ of the stakeholders.

This is a separate account that holds an amount of Ether, that serves as the deterministic means of conducting the specific parameters of the various inter-relating contracts. These parameters can be relatively simple, or complex depending on the specific contract account. Many contract accounts serve as a means of tracking, organizing, and funding various contracts used to conduct business. Such as paying wages, fulfilling expenses, or ordering materials.

Each contract account has its own issued serial number that is used for identification. These serial numbers allow messages and inputs to be sent into the account to engage in certain functions. This is just one way in which a contract account carries out its outlined deterministic processes. Beyond this, contract accounts engage in functions by the triggering of cross conditional factors that lead to self-executing contracts to be engaged. This effectively creates an interplay between external message inputs, both from contract stakeholders and self-executing pre-determined contractual factors. 

A contract account Providing a safe, reliable means of conducting business without the need for centralized authority.