In Solidity files, the SPDX license identifier is a comment at the top that tells what license the code uses, like MIT. This helps tools and users know the legal terms. Next, the pragma solidity line sets the compiler version range, for example ^0.8.0 means version 0.8.0 or higher but less than 0.9.0. This ensures the code compiles only with compatible compiler versions. The contract code follows these lines. During compilation, the compiler checks the pragma version and license comment. If the pragma version does not match the compiler, compilation fails. The variable inside the contract starts with a default value. This flow helps keep Solidity code clear, legal, and compatible.