## Pragma Version We will start by setting a version for our Vyper smart contract. This is an important step to ensure that our code is compatible with the appropriate compiler version. The version is set using the `#pragma version` directive. We will use `0.4.0`, a stable and widely supported version. ```python #pragma version 0.4.0 ``` We can also use other versions, such as 0.4.1 and above, by using the `^` symbol to indicate a minimum version. ```python #pragma version ^0.4.0 ``` We will stick with `0.4.0` in this lesson. Using this version is recommended because it's widely supported and allows for greater compatibility across different compilers. For production code, it's best to use a specific version for the reasons mentioned above. Let's move on to the next step in creating our smart contract.