Contract Account

A contract account is a smart contract that makes crypto transactions possible, automated, and decentralized.

What is Contract Account?

When parties accept a contract a new contract account is made for each contract. The new contracts comprise all expenses of the contract. The contract accounts are controlled by a code rather than private keys. In this manner, a serial number is given to the contract. They don’t control by an authority but are programmed and deployed to the network.

Learn more: What are Smart Contracts?

It is known that contract accounts are used in Ethereum accounts in cryptocurrency. Lists of features of a contract account:

• A contract account has an Ether balance,
• Each contract account has an associated code,
• The code will trigger transactions and messages that come from other contracts,
• A contract account can perform operations of arbitrary complexity when executed,
• In turing completeness, they can manipulate their own persistent storage such as having their own permanent state and can call other contracts.

Pons and Cons of Having a Contract Account

Let’s see the pons:

• A contract account is able to be set up as a Multisig account,
• A Multisig contract is able to organize to a daily limit which user’s specify the amount. If the limit has been exceeded multiple signatures may be required.
• A contract account is able to list all incoming transactions,

Let’s see the cons:

• In comparison with the user accounts, contract accounts require a fee when you use them each time. Also, creating a contract account is also cost.
• Another con is that in comparison with externally owned accounts, contract accounts can’t make new transactions alone. Rather than, the code is triggered by the transactions.