An account in crypto is a record on a blockchain that can hold assets and interact with the network. It is typically associated with an address and controlled through cryptographic keys, letting a user prove ownership and authorize actions such as sending tokens or approving smart contract permissions.
How accounts work on blockchains
On many networks, especially Ethereum and similar smart contract platforms, an account is linked to a public and private keypair. The public key helps derive an address that others can send funds to, while the private key is the secret that signs transactions. The blockchain, not a bank, keeps the authoritative ledger of the account’s balance and transaction history. Wallet apps manage keys and help you create and sign transactions, but the actual “account state” lives on-chain.
Accounts commonly come in two forms. An externally owned account (EOA) is controlled by a private key and is what most people think of as a standard wallet address. A contract account is controlled by code, meaning it can hold assets and execute programmed logic when called, such as a decentralized exchange router or a multisig treasury. For example, when you swap tokens on a DEX, your EOA signs a transaction that calls a contract account, and the contract executes the swap logic.
Account model vs other tracking methods
Some blockchains use an account model, where balances are tracked directly per address. Others, like Bitcoin, primarily use a UTXO model, where spendable “outputs” are tracked and combined to form payments. Both approaches achieve the same goal, recording ownership and enabling transfers, but they differ in how state is represented and how transactions are constructed.