External Calls

Definition ∞ External calls in smart contracts refer to interactions initiated by one smart contract with another contract or an external address. These calls enable smart contracts to execute functions, transfer value, or access data from other contracts or accounts on the blockchain. While essential for interoperability and building complex decentralized applications, external calls introduce security considerations, such as reentrancy vulnerabilities. Proper handling of these interactions is crucial for maintaining contract integrity.
Context ∞ A key discussion surrounding external calls in smart contracts involves mitigating security risks associated with cross-contract communication. A critical future development entails the refinement of secure coding practices and the implementation of advanced formal verification tools to prevent exploitation. This provides immediate context for news regarding smart contract security audits and decentralized application vulnerabilities.