What's Externally Owned Accounts (EOA)?

Published on Sep 21, 2023Updated on Apr 4, 20243 min read

Externally Owned Accounts (EOAs) are the most common type of blockchain account that gives us direct control. These accounts are created using private keys. The associated key gives you a unique signature and access to the blockchain. You can use it to send and receive transactions and interact with applications. This type of account is available on multiple chains and it is the only account that can initiate transactions with sufficient gas fees.

How do I create an EOA?

Once you have your wallet created, simply select Add Account > Regular Account to create an EOA in your wallet
CT-app-web3 wallet-create regular accountSelect ▼ to create a regular account
CT-app-web3 wallet-add account to create EOASelect Add Account to create a regular account
CT-app-web3 wallet-regular accountSelect Regular account to create an EOA

FAQ

1. What purpose does an Externally Owned Account (EOA) serve?

The primary function of an EOA is to handle digital assets, including sending and receiving them, as well as engaging with smart contracts. It serves as the primary means for users to interact with blockchain networks like Ethereum, enabling actions such as sending transactions, voting, and interacting with smart contracts. EOAs also provide a storage solution for holding digital assets.

2. What are the benefits of using EOA?

  • It's easy to use as EOA is the most basic account type
  • The user has full control over the EOA and the funds within it, as only the person who has private key can manage EOA

3. What are the disadvantages of EOA?

  • If your private key is lost or stolen, your funds may be permanently lost.
  • EOA doesn't support complex logic or code like a contract account.

4. What should users be aware of when utilizing EOA?

  • It is essential to keep your private key secure and never share it with anyone else as it is what grants access to your EOA.
  • It is important to make a backup of your private key or seed phrase in order to avoid any potential losses due to accidental deletion.
  • Prior to sending a transaction, ensure the recipient's address is accurate and that you understand the associated fees.

5. What are the differences between an externally owned account (EOA) and a contract account?

  • Externally owned account (EOA) is secured by private key, not smart contract. For example, when you create a new account in Ethereum wallet, you are actually creating an EOA. The address associated with the account is generated based on the public key, which is derived from the private key.
  • Take Ethereum as an example, contract account is created as a special account type when a smart contract is deployed on Ethereum. They are controlled by the logic of the smart contract code. Contract address determined by the sender's wallet address (an EOA) and the Nonce.