Account-based model
An account-based model is a way for a blockchain to track how much crypto someone has. Each account has a current balance and sometimes other stored data.
What is an account-based model?
Think of it like a regular bank account. When you send crypto, the balance in your account goes down and the recipient’s balance goes up.
An account can also contain other data. For example, Ethereum uses a nonce: a sequential number that helps prevent the same transaction from being processed again. Ethereum, Solana, and Avalanche’s C-Chain use this model.
An example of an account-based model
Suppose you have 2 ETH in your account and send 0.5 ETH to someone else. Once the transaction is processed, your account has less ETH and the recipient’s account has more.
The blockchain then stores the updated balances. This makes it possible to see how much crypto each account has at that time.
Why is an account-based model important in crypto?
You’ll most often see this term in news about blockchains like Ethereum and Solana. This model is also suited to smart contracts: programs on the blockchain that can run code and change data after a transaction.
As a result, a transaction can do more than just send crypto. For example, a smart contract can move tokens or change stored data.
An account-based model isn’t automatically faster, cheaper, more secure, or better for privacy than another model. That depends on the blockchain’s overall design.
