Solidity libraries are tools for organizing and reusing code, promoting modularity, reusability, and gas efficiency in Ethereum smart contracts. Libraries differ from standard contracts in that they don't store state variables and focus on 'pure' and 'view' functions. They can be deployed either internally or externally, the latter using delegate call for efficient updates and reduced gas costs. Examples include SafeMath for safe arithmetic operations and MerkleProof for data integrity checks.
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