[linux] What does set -e mean in a bash script?

Script 1: without setting -e
#!/bin/bash
decho "hi"
echo "hello"
This will throw error in decho and program continuous to next line

Script 2: With setting -e
#!/bin/bash
set -e
decho "hi" 
echo "hello"
# Up to decho "hi" shell will process and program exit, it will not proceed further

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