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Ethereum accounts and transactions

Ethereum maintains shared state including balances, contract code and storage.

BeginnerContent revised · 13.09.20263 min reading · allow 5–10 more minutes for the workshopBlockAxis

Your learning plan

Distinguish an address from its account behavior

By the end, explain the diagram in your own words, solve the case and justify the correction.

Prerequisites : Hashes, keys and signatures

Level 1 · Beginner →

Reading path · 4 / 12 · Beginner

Key takeaway

Ethereum maintains shared state including balances, contract code and storage.

The essentials

Ethereum maintains shared state including balances, contract code and storage. A transaction produces a state transition. A traditional externally owned account is controlled by a key; a contract account follows code. Account-abstraction features can change how authorisation is organised, but do not remove the need for it.

How it works

An account nonce orders outgoing transactions and prevents replay within the relevant transaction sequence. A transaction also specifies fee parameters, a destination where applicable, value and data. Contract-call data encodes a function and its arguments. A missing earlier nonce can delay later transactions.

What to watch

ETH is the native asset; an ERC-20 token is accounted for in contract storage. Two tokens with the same ticker may be unrelated contracts. Always identify both the network and contract address. A familiar symbol or logo does not establish authenticity, redemption rights or support by a particular exchange.

Understand the details

Ethereum keeps an evolving state of accounts. An externally owned account can originate transactions through a signature; contract behavior is defined by code and can update storage when executed. A familiar address format does not reveal whether an address is a person, a service or a contract. Token balances are usually recorded in token contracts, separately from the account’s native ETH balance.

Boundaries and common mistakes

The transaction nonce helps order transactions from a sender and prevent replay in that context. A missing earlier nonce can keep later transactions pending. Smart-account mechanisms add programmable authorization, so operational rules must be checked rather than inferred from an address’s appearance. The same address string on another network can refer to a different state.

The mechanism at a glance

  1. Sender and nonce
  2. Native ETH for ordinary fees
  3. Call token contract
  4. Update that network’s state
Distinguish an address from its account behavior. Conceptual map: read these four landmarks together with the explanation above.
Applied workshop · work at your own pace

Apply the lesson to a case

A wallet shows 100 tokens and no ETH on network A. It also shows ETH on network B. Explain why an ordinary transaction on A may still lack its fee asset. Draw separate boxes for the two networks and for native and token balances.

Can the balance on B automatically pay an ordinary fee on A?

Choose one answer.

Terms in this lesson
Nonce
A number used in a particular protocol context: a mining search field in Bitcoin or an account transaction counter in Ethereum.
Prepare a correction note

Describe the passage and the proposed correction. This creates a local note for you to share; it sends nothing. Do not include personal or confidential information.