Contract verification on Etherscan is the process of proving that the source code you wrote matches the code deployed on the blockchain. First, you write your smart contract code and compile it to get bytecode. Then you deploy this bytecode to the blockchain, which gives you a contract address. To verify, you go to Etherscan, enter the contract address, and submit your source code along with the exact compiler version and optimization settings you used. Etherscan recompiles your source code and compares the bytecode with the one on the blockchain. If they match, verification succeeds and your source code is published on Etherscan for anyone to see. This process helps users trust the contract by seeing its source code. If the bytecode does not match, verification fails. It is important to use the exact compiler settings to avoid mismatch. The contract address is needed so Etherscan knows which deployed code to compare against.