Internal transactions refer to the movement of assets or value within a blockchain network that does not involve a transfer between external wallets. Instead, these transactions often occur within a single smart contract or between accounts controlled by the same user.A common example is the interaction with decentralized applications (dApps) or smart contracts. When users engage with a dApp, they may initiate actions that cause internal transactions to happen without sending funds out to a different wallet. These actions can include functions like trading tokens, staking, or executing other automated protocols.Internal transactions are typically not recorded as separate entries on the blockchain, which can make them less visible to users. However, they play a crucial role in the functioning of decentralized systems, allowing for complex calculations, resource allocations, and automated financial operations. Understanding internal transactions helps users grasp how value moves and evolves within a given network.