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The difference between these two is that intrinsic value represents its actual worth based on its recent performance and other factors affecting it <strong>in the long term</strong>. The current value, on the other hand, is the price of an asset at a given moment.</p>\n<p>In the traditional financial world, the <strong>intrinsic value of an asset</strong> is closely linked to the underlying valuation of the company that uses the asset. &nbsp;A company's underlying value is defined by its cash flow, future earnings, and other factors, thus, intrinsic value is defined by the same things. Therefore, if a company is <strong>performing well</strong>, the intrinsic value will be higher, but if it&rsquo;s experiencing some hardships, the intrinsic value will drop.</p>\n<p>In the world of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">cryptocurrencies, the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-token/">token&rsquo;s intrinsic value is also influenced by the company or people behind the project, as well as the goal of the project. For instance, the creator of <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/who-is-satoshi-nakamoto/">Satoshi Nakamoto</strong></a>, is <strong>an intriguing character</strong> about whom we barely know anything. That could affect the intrinsic value of Bitcoin in a bad way, however, the goals of Bitcoin wield enormous power which pushes the token&rsquo;s intrinsic value upward.</p>\n<p>Because of the numerous factors that can influence the construction of an asset's intrinsic value, it is a pretty abstract number. Therefore, financial analysts have complex algorithms to calculate it as precisely as possible. However, in <strong>the crypto world</strong>, it might be a bit harder to determine the token&rsquo;s intrinsic value but, with the right amount of research, it&rsquo;s not impossible.</p>","level":"easy","meta_title":"What is Intrinsic Value? 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An external transaction is transmitted from an <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum (ETH)</strong></a> account into a smart contract.</p>\n<p>Smart contracts are <strong>blockchain-based protocols</strong> used to verify contracts on the Ethereum blockchain. They are developed to be self-executing and business-automated and act without the involvement of any third party or central authority.</p>\n<p>In the Ethereum ecosystem, smart contracts act like <strong>computer programs that manage the ETH balance</strong> and perform crypto transactions. Transactions completed via smart contracts are traceable on the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain and cannot be reversed. They are sent to Ethereum accounts known as <strong>EOAs</strong> &ndash; externally owned accounts. Most EOAs are privately owned.</p>\n<p>Smart contract interactions with Ethereum accounts automatically trigger preset procedures which cause byproducts known as internal transactions. A single <strong>interaction between an EOA and a smart contract</strong> can sometimes trigger hundreds of internal transactions. Such transactions are value transfers that take place during a token transfer or a smart contract activation.</p>\n<p>Smart contracts are required for certain Ether and token transactions. Such transactions <strong>show up on the main ETH transaction history</strong> as internal transactions and are not publicly visible. Transactions act as an event that alters the state of the Ethereum chain, as they write new data into the blocks rather than processing it.</p>\n<p>There are various triggers to a state change on the Ethereum blockchain. However, <strong>transactions are the most common</strong>. Transaction information is generally transparent, i.e., visible to the blockchain network, and developers can use address activity notifications to track crypto transfers and inform users about the executed transactions.</p>\n<p>Unlike regular transactions, internal ones do not come with a cryptographic signature and are stored <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-off-chain-transaction/">off-chain. Attempts to store internal transactions <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-on-chain/">on-chain require more gas and are <strong>rarely executed</strong>. Internal transactions are used exclusively to transfer Ether, which has a direct effect on the balance of the wallet address.&nbsp;</p>\n<p>There is little information on internal transactions as they occur. Therefore, users may be unaware that their wallet or smart contract was <strong>involved in an internal transaction</strong>.</p>\n<p>The process of tracing internal transactions is slow and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-central-processing-unit-cpu/">CPU-intensive. It requires a lot of energy from the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">network nodes</strong></a>, which can lead to some of them <strong>breaking and impacting the overall node data</strong>.</p>\n<p>The nodes also restrict the tracing process to a limited number of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block/">blocks, usually around 30 minutes worth of blocks. This means that users that wish to trace an internal transaction must <strong>act fast</strong> to collect relevant information about the internal transaction in question.</p>\n<p>The traced results can require a massive amount of storage space, which complicates the retrieval process. Given the amount of time, processing power, and <strong>nodes</strong> required for the procedure, tracing an internal transaction is only possible for a limited number of blockchain users.</p>","level":"medium","meta_title":"What is Internal Transaction? Definition & Meaning | Crypto Wiki","meta_description":"Internal Transaction meaning: Internal Transaction - a byproduct of an interaction between an Ethereum account and a contract address that results in an Ether transaction.","meta_keywords":null,"language":"en","created_at":"2022-03-18T07:49:33.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-internal-transaction"},"currentChapter":"I","currentSection":"what-is-internet-of-things","chapterTitle":"I","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-internet-of-things","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter I

What is Internet of Things?

Internet of Things MEANING:
Internet of Things - a global network of devices and software that is interconnected via the internet and can exchange data in real time.
Easy
1 minute

Let's find out Internet of Things meaning, definition in crypto, what is Internet of Things, and all other detailed facts.

The Internet of Things (IoT) is a massive global network of various devices, software, and sensors that are interconnected via the internet. A large variety of devices – from smartphones and computers to smart fridges and even some toys – can be connected to the internet and learn to interact with each other via data transfers, forming the IoT network.

Internet of Things is a growing research field in multiple aspects, from the development of new network-friendly devices to the analysis of the relationship between humans and technology. The network offers an immense amount of use cases in a number of industries, such as healthcare, manufacturing, transportation, and energy, among others.

According to some predictions, the number of IoT devices worldwide is expected to reach 75 billion by 2025, growing nearly four times from 20.4 billion in 2020.

A smart home device such as Alexa can connect to the internet to form personalized profiles of users, and collect data on shopping preferences that can be passed on to Amazon or third-party retail providers. It can also connect to smartphones or gaming consoles, thus increasing its data pool and building the network further.

Although the connection of IoT with the crypto industry is limited, maintained primarily via mining equipment and hardware wallets, some cryptocurrency projects have been developed with the functionality of the IoT in mind.

One of the largest IoT-adjacent projects is IOTA, an open-source distributed ledger that aims to create a blockchain supporting duty-free microtransactions and regular transactions, thus allowing IoT devices to share value alongside data.