There are a few essential parameters that are required when creating an account.
These parameters are listed as follows: Sender Original transactor (transaction originator) Available gas Gas price Endowment, which is the amount of ether allocated A byte array of an arbitrary length Initialization EVM code Current depth of the message call/contract-creation stack (current depth means the number of items that are already there in the stack) Addresses generated as a result of contract creation transaction are 160-bit in length.
From Initiation to Immutable Confirmation (Part 2)
Precisely, as defined in the yellow paper, they are the rightmost 160-bits of the Keccak hash of the RLP encoding of the structure containing only the sender and the nonce.
The balance of the account is set to the value passed to the contract.
The new account is initialized when the EVM code (the Initialization EVM code, mentioned earlier) is executed.
In the case of any exception during code execution, such as not having enough gas (running Out Of Gas, OOG), the state does not change.
If the execution is successful, then the account is created after the payment of appropriate gas costs.
Since the Ethereum (Homestead) is the result of a contract creation transaction is either a new contract with its balance or no new contract is created with no transfer of value.
Why This Matters for Blockchain Technology
This is in contrast to versions prior to Homestead, where the contract would be created regardless of the contract code deployment being successful or not due to an out-of-gas exception.
Key Points to Remember
- Contract creation transaction There are a few essential parameters that are required when creating an account.
- Precisely, as defined in the yellow paper, they are the rightmost 160-bits of the Keccak hash of the RLP encoding of the structure containing only the sender and the nonce.
- The balance of the account is set to the value passed to the contract.
- The new account is initialized when the EVM code (the Initialization EVM code, mentioned earlier) is executed.
Conclusion
Contract creation transaction represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.