Ethereum accounts: what does a signature authorize?

An Ethereum account has an address and an ETH balance. A wallet helps use keys and prepare requests; it is not the on-chain account itself. Token balances are commonly recorded by token contracts, rather than in the account’s native ETH balance field.

Follow one request

In a basic key-controlled account, the private key signs a transaction specifying a destination, ETH value, optional call data and fee limits. A nonce is the sender’s sequence number: it prevents the same signed transaction from being executed repeatedly in that account’s sequence.

For an ETH transfer, the request names a recipient and amount. For a registry update, it calls a contract with data describing the change. The contract still checks its authorization rules: a valid sender signature does not mean every caller may edit every record.

Signing is one stage

After signing and submission, the transaction must be included and executed. A failed contract call may consume gas; successful execution and finality answer different questions. Contract wallets and delegated account designs add authorization logic; this basic example does not cover every wallet design.

Compare Bitcoin’s spendable outputs with these account records. Base and Circle Arc reuse Ethereum concepts, but network state and fees still need separate checks.

Sources and further reading