How to authenticate and send contract method using web3.js 1.0

Question

I am confused about how I should be executing a contract\'s method using the web3 1.0 library.

This code works (so long as I manually unlock the account first):

Answer 1

This code allows me to sign a transaction server-side (node.js) using the privateKey from the account I created (using web3.eth.accounts.create()), and send the signed transaction to the network without having to unlock the account.

I am using Geth 1.7.1

  var contract = new web3.eth.Contract(contractJson, contractAddress);
  var transfer = contract.methods.transfer("0x...", 490);
  var encodedABI = transfer.encodeABI();

  var tx = {
    from: "0x...",
    to: contractAddress,
    gas: 2000000,
    data: encodedABI
  }; 

  web3.eth.accounts.signTransaction(tx, privateKey).then(signed => {
    var tran = web3.eth.sendSignedTransaction(signed.rawTransaction);

    tran.on('confirmation', (confirmationNumber, receipt) => {
      console.log('confirmation: ' + confirmationNumber);
    });

    tran.on('transactionHash', hash => {
      console.log('hash');
      console.log(hash);
    });

    tran.on('receipt', receipt => {
      console.log('reciept');
      console.log(receipt);
    });

    tran.on('error', console.error);
  });