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What is the primary distinction between storage and memory in the context of a blockchain contract?

  1. Storage is like RAM, while memory is like an HDD.

  2. Storage holds data between function calls, while memory is temporary.

  3. Memory is where the smart contract runs, while storage is where codes are executed.

  4. Storage is always mutable, whereas memory is immutable.

The correct answer is: Storage holds data between function calls, while memory is temporary.

The primary distinction between storage and memory in the context of a blockchain contract revolves around how and when the data is retained. Storage refers to the permanent data storage space associated with a smart contract on the blockchain. This is where variables are stored on the blockchain network, allowing them to persist between transactions and function calls, ensuring that the data is maintained over time. Memory, on the other hand, is a temporary form of storage that exists only for the duration of a specific function call. It is not saved once the execution of the function is complete. This characteristic is critical as it allows for faster access and manipulation of data during execution without incurring the gas costs associated with writing data to the blockchain. This distinction makes storage essential for retaining important data across transactions, while memory is used for temporary data storage during computations within a smart contract’s execution. The other options either misinterpret the roles of storage and memory or do not accurately represent their functions in smart contract development.