Contract interaction

A contract interaction is an action where a wallet or application communicates with a smart contract on a blockchain. This can include swapping tokens, approving a token transfer, minting a non-fungible token, depositing into a lending protocol, or claiming rewards. A contract interaction is more complex than a simple crypto transfer because the user is calling blockchain code to perform a specific function. On Ethereum and many other networks, contract interactions come with gas fees. The wallet may show the requested action before the user signs and submits the transaction.

A user swaps ETH for USDC on a decentralized exchange. Their wallet sends a contract interaction to the exchange’s smart contract, which processes the swap according to the pool’s rules.