diff --git a/common/src/sequencer_client.rs b/common/src/sequencer_client.rs
index d3c5f23..622c0c1 100644
--- a/common/src/sequencer_client.rs
+++ b/common/src/sequencer_client.rs
@@ -30,16 +30,25 @@ use crate::{
 pub struct SequencerClient {
     pub client: reqwest::Client,
     pub sequencer_addr: String,
+    pub basic_auth: Option<(String, Option<String>)>,
 }
 
 impl SequencerClient {
     pub fn new(sequencer_addr: String) -> Result<Self> {
+        Self::new_with_auth(sequencer_addr, None)
+    }
+
+    pub fn new_with_auth(
+        sequencer_addr: String,
+        basic_auth: Option<(String, Option<String>)>,
+    ) -> Result<Self> {
         Ok(Self {
             client: Client::builder()
                 //Add more fiedls if needed
                 .timeout(std::time::Duration::from_secs(60))
                 .build()?,
             sequencer_addr,
+            basic_auth,
         })
     }
 
@@ -51,13 +60,16 @@ impl SequencerClient {
         let request =
             rpc_primitives::message::Request::from_payload_version_2_0(method.to_string(), payload);
 
-        let call_builder = self.client.post(&self.sequencer_addr);
+        let mut call_builder = self.client.post(&self.sequencer_addr);
+
+        if let Some((username, password)) = &self.basic_auth {
+            call_builder = call_builder.basic_auth(username, password.as_deref());
+        }
 
         let call_res = call_builder.json(&request).send().await?;
 
         let response_vall = call_res.json::<Value>().await?;
 
-        // TODO: Actually why we need separation of `result` and `error` in rpc response?
         #[derive(Debug, Clone, Deserialize)]
         #[allow(dead_code)]
         pub struct SequencerRpcResponse {
diff --git a/integration_tests/src/data_changer.bin b/integration_tests/src/data_changer.bin
index c4fbec0..3d062c3 100644
Binary files a/integration_tests/src/data_changer.bin and b/integration_tests/src/data_changer.bin differ
diff --git a/integration_tests/src/test_suite_map.rs b/integration_tests/src/test_suite_map.rs
index 1c01b6f..40cf34f 100644
--- a/integration_tests/src/test_suite_map.rs
+++ b/integration_tests/src/test_suite_map.rs
@@ -357,8 +357,8 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
         // The data of a token definition account has the following layout:
         // [ 0x00 || name (6 bytes) || total supply (little endian 16 bytes) ]
         assert_eq!(
-            definition_acc.data,
-            vec![
+            definition_acc.data.as_ref(),
+            &[
                 0, 65, 32, 78, 65, 77, 69, 37, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
         );
@@ -376,11 +376,14 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
         // The data of a token definition account has the following layout:
         // [ 0x01 || corresponding_token_definition_id (32 bytes) || balance (little endian 16
         // bytes) ] First byte of the data equal to 1 means it's a token holding account
-        assert_eq!(supply_acc.data[0], 1);
+        assert_eq!(supply_acc.data.as_ref()[0], 1);
         // Bytes from 1 to 33 represent the id of the token this account is associated with.
         // In this example, this is a token account of the newly created token, so it is expected
         // to be equal to the account_id of the token definition account.
-        assert_eq!(&supply_acc.data[1..33], definition_account_id.to_bytes());
+        assert_eq!(
+            &supply_acc.data.as_ref()[1..33],
+            definition_account_id.to_bytes()
+        );
         assert_eq!(
             u128::from_le_bytes(supply_acc.data[33..].try_into().unwrap()),
             37
@@ -519,8 +522,8 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
         // The data of a token definition account has the following layout:
         // [ 0x00 || name (6 bytes) || total supply (little endian 16 bytes) ]
         assert_eq!(
-            definition_acc.data,
-            vec![
+            definition_acc.data.as_ref(),
+            &[
                 0, 65, 32, 78, 65, 77, 69, 37, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
         );
@@ -680,8 +683,8 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
         // The data of a token definition account has the following layout:
         // [ 0x00 || name (6 bytes) || total supply (little endian 16 bytes) ]
         assert_eq!(
-            definition_acc.data,
-            vec![
+            definition_acc.data.as_ref(),
+            &[
                 0, 65, 32, 78, 65, 77, 69, 37, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
         );
@@ -822,8 +825,8 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
         // The data of a token definition account has the following layout:
         // [ 0x00 || name (6 bytes) || total supply (little endian 16 bytes) ]
         assert_eq!(
-            definition_acc.data,
-            vec![
+            definition_acc.data.as_ref(),
+            &[
                 0, 65, 32, 78, 65, 77, 69, 37, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
         );
@@ -964,8 +967,8 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
         // The data of a token definition account has the following layout:
         // [ 0x00 || name (6 bytes) || total supply (little endian 16 bytes) ]
         assert_eq!(
-            definition_acc.data,
-            vec![
+            definition_acc.data.as_ref(),
+            &[
                 0, 65, 32, 78, 65, 77, 69, 37, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
         );
@@ -1464,7 +1467,7 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
             data_changer.id(),
             vec![account_id],
             vec![],
-            (),
+            vec![0],
         )
         .unwrap();
         let witness_set = nssa::public_transaction::WitnessSet::for_message(&message, &[]);
@@ -1481,7 +1484,7 @@ pub fn prepare_function_map() -> HashMap<String, TestFunction> {
             .account;
         assert_eq!(post_state_account.program_owner, data_changer.id());
         assert_eq!(post_state_account.balance, 0);
-        assert_eq!(post_state_account.data, vec![0]);
+        assert_eq!(post_state_account.data.as_ref(), &[0]);
         assert_eq!(post_state_account.nonce, 0);
 
         info!("Success!");
diff --git a/integration_tests/src/tps_test_utils.rs b/integration_tests/src/tps_test_utils.rs
index d06a08f..29462f6 100644
--- a/integration_tests/src/tps_test_utils.rs
+++ b/integration_tests/src/tps_test_utils.rs
@@ -8,7 +8,8 @@ use nssa::{
     public_transaction as putx,
 };
 use nssa_core::{
-    MembershipProof, NullifierPublicKey, account::AccountWithMetadata,
+    MembershipProof, NullifierPublicKey,
+    account::{AccountWithMetadata, data::Data},
     encryption::IncomingViewingPublicKey,
 };
 use sequencer_core::config::{AccountInitialData, CommitmentsInitialData, SequencerConfig};
@@ -90,7 +91,7 @@ impl TpsTestManager {
             balance: 100,
             nonce: 0xdeadbeef,
             program_owner: Program::authenticated_transfer_program().id(),
-            data: vec![],
+            data: Data::default(),
         };
         let initial_commitment = CommitmentsInitialData {
             npk: sender_npk,
@@ -129,7 +130,7 @@ fn build_privacy_transaction() -> PrivacyPreservingTransaction {
             balance: 100,
             nonce: 0xdeadbeef,
             program_owner: program.id(),
-            data: vec![],
+            data: Data::default(),
         },
         true,
         AccountId::from(&sender_npk),
diff --git a/nssa/core/Cargo.toml b/nssa/core/Cargo.toml
index 67f40b2..80fe7df 100644
--- a/nssa/core/Cargo.toml
+++ b/nssa/core/Cargo.toml
@@ -6,14 +6,17 @@ edition = "2024"
 [dependencies]
 risc0-zkvm = { version = "3.0.3", features = ['std'] }
 serde = { version = "1.0", default-features = false }
-thiserror = { version = "2.0.12", optional = true }
+thiserror = { version = "2.0.12" }
 bytemuck = { version = "1.13", optional = true }
 chacha20 = { version = "0.9", default-features = false }
 k256 = { version = "0.13.3", optional = true }
 base58 = { version = "0.2.0", optional = true }
 anyhow = { version = "1.0.98", optional = true }
-borsh.workspace = true
+borsh = "1.5.7"
+
+[dev-dependencies]
+serde_json = "1.0.81"
 
 [features]
 default = []
-host = ["thiserror", "bytemuck", "k256", "base58", "anyhow"]
+host = ["dep:bytemuck", "dep:k256", "dep:base58", "dep:anyhow"]
diff --git a/nssa/core/src/account.rs b/nssa/core/src/account.rs
index f32d05d..89bec37 100644
--- a/nssa/core/src/account.rs
+++ b/nssa/core/src/account.rs
@@ -4,12 +4,14 @@ use std::{fmt::Display, str::FromStr};
 #[cfg(feature = "host")]
 use base58::{FromBase58, ToBase58};
 use borsh::{BorshDeserialize, BorshSerialize};
+pub use data::Data;
 use serde::{Deserialize, Serialize};
 
 use crate::program::ProgramId;
 
+pub mod data;
+
 pub type Nonce = u128;
-pub type Data = Vec<u8>;
 
 /// Account to be used both in public and private contexts
 #[derive(
@@ -139,7 +141,10 @@ mod tests {
         let account = Account {
             program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
             balance: 1337,
-            data: b"testing_account_with_metadata_constructor".to_vec(),
+            data: b"testing_account_with_metadata_constructor"
+                .to_vec()
+                .try_into()
+                .unwrap(),
             nonce: 0xdeadbeef,
         };
         let fingerprint = AccountId::new([8; 32]);
diff --git a/nssa/core/src/account/data.rs b/nssa/core/src/account/data.rs
new file mode 100644
index 0000000..974cb06
--- /dev/null
+++ b/nssa/core/src/account/data.rs
@@ -0,0 +1,174 @@
+use std::ops::Deref;
+
+use borsh::{BorshDeserialize, BorshSerialize};
+use serde::{Deserialize, Serialize};
+
+pub const DATA_MAX_LENGTH_IN_BYTES: usize = 100 * 1024; // 100 KiB
+
+#[derive(Default, Clone, PartialEq, Eq, Serialize, BorshSerialize)]
+#[cfg_attr(any(feature = "host", test), derive(Debug))]
+pub struct Data(Vec<u8>);
+
+impl Data {
+    pub fn into_inner(self) -> Vec<u8> {
+        self.0
+    }
+
+    #[cfg(feature = "host")]
+    pub fn from_cursor(
+        cursor: &mut std::io::Cursor<&[u8]>,
+    ) -> Result<Self, crate::error::NssaCoreError> {
+        use std::io::Read as _;
+
+        let mut u32_bytes = [0u8; 4];
+        cursor.read_exact(&mut u32_bytes)?;
+        let data_length = u32::from_le_bytes(u32_bytes);
+        if data_length as usize > DATA_MAX_LENGTH_IN_BYTES {
+            return Err(
+                std::io::Error::new(std::io::ErrorKind::InvalidData, DataTooBigError).into(),
+            );
+        }
+
+        let mut data = vec![0; data_length as usize];
+        cursor.read_exact(&mut data)?;
+        Ok(Self(data))
+    }
+}
+
+#[derive(Debug, thiserror::Error, Clone, Copy, PartialEq, Eq)]
+#[error("data length exceeds maximum allowed length of {DATA_MAX_LENGTH_IN_BYTES} bytes")]
+pub struct DataTooBigError;
+
+impl From<Data> for Vec<u8> {
+    fn from(data: Data) -> Self {
+        data.0
+    }
+}
+
+impl TryFrom<Vec<u8>> for Data {
+    type Error = DataTooBigError;
+
+    fn try_from(value: Vec<u8>) -> Result<Self, Self::Error> {
+        if value.len() > DATA_MAX_LENGTH_IN_BYTES {
+            Err(DataTooBigError)
+        } else {
+            Ok(Self(value))
+        }
+    }
+}
+
+impl Deref for Data {
+    type Target = [u8];
+
+    fn deref(&self) -> &Self::Target {
+        &self.0
+    }
+}
+
+impl AsRef<[u8]> for Data {
+    fn as_ref(&self) -> &[u8] {
+        &self.0
+    }
+}
+
+impl<'de> Deserialize<'de> for Data {
+    fn deserialize<D>(deserializer: D) -> Result<Self, D::Error>
+    where
+        D: serde::Deserializer<'de>,
+    {
+        /// Data deserialization visitor.
+        ///
+        /// Compared to a simple deserialization into a `Vec<u8>`, this visitor enforces
+        /// early length check defined by [`DATA_MAX_LENGTH_IN_BYTES`].
+        struct DataVisitor;
+
+        impl<'de> serde::de::Visitor<'de> for DataVisitor {
+            type Value = Data;
+
+            fn expecting(&self, formatter: &mut std::fmt::Formatter) -> std::fmt::Result {
+                write!(
+                    formatter,
+                    "a byte array with length not exceeding {} bytes",
+                    DATA_MAX_LENGTH_IN_BYTES
+                )
+            }
+
+            fn visit_seq<A>(self, mut seq: A) -> Result<Self::Value, A::Error>
+            where
+                A: serde::de::SeqAccess<'de>,
+            {
+                let mut vec =
+                    Vec::with_capacity(seq.size_hint().unwrap_or(0).min(DATA_MAX_LENGTH_IN_BYTES));
+
+                while let Some(value) = seq.next_element()? {
+                    if vec.len() >= DATA_MAX_LENGTH_IN_BYTES {
+                        return Err(serde::de::Error::custom(DataTooBigError));
+                    }
+                    vec.push(value);
+                }
+
+                Ok(Data(vec))
+            }
+        }
+
+        deserializer.deserialize_seq(DataVisitor)
+    }
+}
+
+impl BorshDeserialize for Data {
+    fn deserialize_reader<R: std::io::Read>(reader: &mut R) -> std::io::Result<Self> {
+        // Implementation adapted from `impl BorshDeserialize for Vec<T>`
+
+        let len = u32::deserialize_reader(reader)?;
+        match len {
+            0 => Ok(Self::default()),
+            len if len as usize > DATA_MAX_LENGTH_IN_BYTES => Err(std::io::Error::new(
+                std::io::ErrorKind::InvalidData,
+                DataTooBigError,
+            )),
+            len => {
+                let vec_bytes = u8::vec_from_reader(len, reader)?
+                    .expect("can't be None in current borsh crate implementation");
+                Ok(Self(vec_bytes))
+            }
+        }
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_data_max_length_allowed() {
+        let max_vec = vec![0u8; DATA_MAX_LENGTH_IN_BYTES];
+        let result = Data::try_from(max_vec);
+        assert!(result.is_ok());
+    }
+
+    #[test]
+    fn test_data_too_big_error() {
+        let big_vec = vec![0u8; DATA_MAX_LENGTH_IN_BYTES + 1];
+        let result = Data::try_from(big_vec);
+        assert!(matches!(result, Err(DataTooBigError)));
+    }
+
+    #[test]
+    fn test_borsh_deserialize_exceeding_limit_error() {
+        let too_big_data = vec![0u8; DATA_MAX_LENGTH_IN_BYTES + 1];
+        let mut serialized = Vec::new();
+        <_ as BorshSerialize>::serialize(&too_big_data, &mut serialized).unwrap();
+
+        let result = <Data as BorshDeserialize>::deserialize(&mut serialized.as_ref());
+        assert!(result.is_err());
+    }
+
+    #[test]
+    fn test_json_deserialize_exceeding_limit_error() {
+        let data = vec![0u8; DATA_MAX_LENGTH_IN_BYTES + 1];
+        let json = serde_json::to_string(&data).unwrap();
+
+        let result: Result<Data, _> = serde_json::from_str(&json);
+        assert!(result.is_err());
+    }
+}
diff --git a/nssa/core/src/circuit_io.rs b/nssa/core/src/circuit_io.rs
index e1afe10..5bf620e 100644
--- a/nssa/core/src/circuit_io.rs
+++ b/nssa/core/src/circuit_io.rs
@@ -54,7 +54,7 @@ mod tests {
                     Account {
                         program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
                         balance: 12345678901234567890,
-                        data: b"test data".to_vec(),
+                        data: b"test data".to_vec().try_into().unwrap(),
                         nonce: 18446744073709551614,
                     },
                     true,
@@ -64,7 +64,7 @@ mod tests {
                     Account {
                         program_owner: [9, 9, 9, 8, 8, 8, 7, 7],
                         balance: 123123123456456567112,
-                        data: b"test data".to_vec(),
+                        data: b"test data".to_vec().try_into().unwrap(),
                         nonce: 9999999999999999999999,
                     },
                     false,
@@ -74,7 +74,7 @@ mod tests {
             public_post_states: vec![Account {
                 program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
                 balance: 100,
-                data: b"post state data".to_vec(),
+                data: b"post state data".to_vec().try_into().unwrap(),
                 nonce: 18446744073709551615,
             }],
             ciphertexts: vec![Ciphertext(vec![255, 255, 1, 1, 2, 2])],
diff --git a/nssa/core/src/encoding.rs b/nssa/core/src/encoding.rs
index 3a8a128..24ac050 100644
--- a/nssa/core/src/encoding.rs
+++ b/nssa/core/src/encoding.rs
@@ -26,12 +26,14 @@ impl Account {
         bytes.extend_from_slice(&self.nonce.to_le_bytes());
         let data_length: u32 = self.data.len() as u32;
         bytes.extend_from_slice(&data_length.to_le_bytes());
-        bytes.extend_from_slice(self.data.as_slice());
+        bytes.extend_from_slice(self.data.as_ref());
         bytes
     }
 
     #[cfg(feature = "host")]
     pub fn from_cursor(cursor: &mut Cursor<&[u8]>) -> Result<Self, NssaCoreError> {
+        use crate::account::data::Data;
+
         let mut u32_bytes = [0u8; 4];
         let mut u128_bytes = [0u8; 16];
 
@@ -51,10 +53,7 @@ impl Account {
         let nonce = u128::from_le_bytes(u128_bytes);
 
         // data
-        cursor.read_exact(&mut u32_bytes)?;
-        let data_length = u32::from_le_bytes(u32_bytes);
-        let mut data = vec![0; data_length as usize];
-        cursor.read_exact(&mut data)?;
+        let data = Data::from_cursor(cursor)?;
 
         Ok(Self {
             program_owner,
@@ -149,7 +148,7 @@ mod tests {
             program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
             balance: 123456789012345678901234567890123456,
             nonce: 42,
-            data: b"hola mundo".to_vec(),
+            data: b"hola mundo".to_vec().try_into().unwrap(),
         };
 
         // program owner || balance || nonce || data_len || data
@@ -210,7 +209,7 @@ mod tests {
             program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
             balance: 123456789012345678901234567890123456,
             nonce: 42,
-            data: b"hola mundo".to_vec(),
+            data: b"hola mundo".to_vec().try_into().unwrap(),
         };
         let bytes = account.to_bytes();
         let mut cursor = Cursor::new(bytes.as_ref());
diff --git a/nssa/core/src/program.rs b/nssa/core/src/program.rs
index 054f993..8f49724 100644
--- a/nssa/core/src/program.rs
+++ b/nssa/core/src/program.rs
@@ -1,6 +1,8 @@
 use risc0_zkvm::{DeserializeOwned, guest::env, serde::Deserializer};
 use serde::{Deserialize, Serialize};
 
+#[cfg(feature = "host")]
+use crate::account::AccountId;
 use crate::account::{Account, AccountWithMetadata};
 
 pub type ProgramId = [u32; 8];
@@ -12,19 +14,105 @@ pub struct ProgramInput<T> {
     pub instruction: T,
 }
 
+/// A 32-byte seed used to compute a *Program-Derived AccountId* (PDA).
+///
+/// Each program can derive up to `2^256` unique account IDs by choosing different
+/// seeds. PDAs allow programs to control namespaced account identifiers without
+/// collisions between programs.
+#[derive(Serialize, Deserialize, Clone)]
+#[cfg_attr(any(feature = "host", test), derive(Debug, PartialEq, Eq))]
+pub struct PdaSeed([u8; 32]);
+
+impl PdaSeed {
+    pub fn new(value: [u8; 32]) -> Self {
+        Self(value)
+    }
+}
+
+#[cfg(feature = "host")]
+impl From<(&ProgramId, &PdaSeed)> for AccountId {
+    fn from(value: (&ProgramId, &PdaSeed)) -> Self {
+        use risc0_zkvm::sha::{Impl, Sha256};
+        const PROGRAM_DERIVED_ACCOUNT_ID_PREFIX: &[u8; 32] =
+            b"/NSSA/v0.2/AccountId/PDA/\x00\x00\x00\x00\x00\x00\x00";
+
+        let mut bytes = [0; 96];
+        bytes[0..32].copy_from_slice(PROGRAM_DERIVED_ACCOUNT_ID_PREFIX);
+        let program_id_bytes: &[u8] =
+            bytemuck::try_cast_slice(value.0).expect("ProgramId should be castable to &[u8]");
+        bytes[32..64].copy_from_slice(program_id_bytes);
+        bytes[64..].copy_from_slice(&value.1.0);
+        AccountId::new(
+            Impl::hash_bytes(&bytes)
+                .as_bytes()
+                .try_into()
+                .expect("Hash output must be exactly 32 bytes long"),
+        )
+    }
+}
+
 #[derive(Serialize, Deserialize, Clone)]
 #[cfg_attr(any(feature = "host", test), derive(Debug, PartialEq, Eq))]
 pub struct ChainedCall {
     pub program_id: ProgramId,
     pub instruction_data: InstructionData,
     pub pre_states: Vec<AccountWithMetadata>,
+    pub pda_seeds: Vec<PdaSeed>,
+}
+
+/// Represents the final state of an `Account` after a program execution.
+/// A post state may optionally request that the executing program
+/// becomes the owner of the account (a “claim”). This is used to signal
+/// that the program intends to take ownership of the account.
+#[derive(Serialize, Deserialize, Clone)]
+#[cfg_attr(any(feature = "host", test), derive(Debug, PartialEq, Eq))]
+pub struct AccountPostState {
+    account: Account,
+    claim: bool,
+}
+
+impl AccountPostState {
+    /// Creates a post state without a claim request.
+    /// The executing program is not requesting ownership of the account.
+    pub fn new(account: Account) -> Self {
+        Self {
+            account,
+            claim: false,
+        }
+    }
+
+    /// Creates a post state that requests ownership of the account.
+    /// This indicates that the executing program intends to claim the
+    /// account as its own and is allowed to mutate it.
+    pub fn new_claimed(account: Account) -> Self {
+        Self {
+            account,
+            claim: true,
+        }
+    }
+
+    /// Returns `true` if this post state requests that the account
+    /// be claimed (owned) by the executing program.
+    pub fn requires_claim(&self) -> bool {
+        self.claim
+    }
+
+    /// Returns the underlying account
+    pub fn account(&self) -> &Account {
+        &self.account
+    }
+
+    /// Returns the underlying account
+    pub fn account_mut(&mut self) -> &mut Account {
+        &mut self.account
+    }
 }
 
 #[derive(Serialize, Deserialize, Clone)]
 #[cfg_attr(any(feature = "host", test), derive(Debug, PartialEq, Eq))]
 pub struct ProgramOutput {
     pub pre_states: Vec<AccountWithMetadata>,
-    pub post_states: Vec<Account>,
+    pub post_states: Vec<AccountPostState>,
     pub chained_calls: Vec<ChainedCall>,
 }
 
@@ -38,7 +126,10 @@ pub fn read_nssa_inputs<T: DeserializeOwned>() -> ProgramInput<T> {
     }
 }
 
-pub fn write_nssa_outputs(pre_states: Vec<AccountWithMetadata>, post_states: Vec<Account>) {
+pub fn write_nssa_outputs(
+    pre_states: Vec<AccountWithMetadata>,
+    post_states: Vec<AccountPostState>,
+) {
     let output = ProgramOutput {
         pre_states,
         post_states,
@@ -49,7 +140,7 @@ pub fn write_nssa_outputs(pre_states: Vec<AccountWithMetadata>, post_states: Vec
 
 pub fn write_nssa_outputs_with_chained_call(
     pre_states: Vec<AccountWithMetadata>,
-    post_states: Vec<Account>,
+    post_states: Vec<AccountPostState>,
     chained_calls: Vec<ChainedCall>,
 ) {
     let output = ProgramOutput {
@@ -68,7 +159,7 @@ pub fn write_nssa_outputs_with_chained_call(
 /// - `executing_program_id`: The identifier of the program that was executed.
 pub fn validate_execution(
     pre_states: &[AccountWithMetadata],
-    post_states: &[Account],
+    post_states: &[AccountPostState],
     executing_program_id: ProgramId,
 ) -> bool {
     // 1. Lengths must match
@@ -78,25 +169,27 @@ pub fn validate_execution(
 
     for (pre, post) in pre_states.iter().zip(post_states) {
         // 2. Nonce must remain unchanged
-        if pre.account.nonce != post.nonce {
+        if pre.account.nonce != post.account.nonce {
             return false;
         }
 
         // 3. Program ownership changes are not allowed
-        if pre.account.program_owner != post.program_owner {
+        if pre.account.program_owner != post.account.program_owner {
             return false;
         }
 
         let account_program_owner = pre.account.program_owner;
 
         // 4. Decreasing balance only allowed if owned by executing program
-        if post.balance < pre.account.balance && account_program_owner != executing_program_id {
+        if post.account.balance < pre.account.balance
+            && account_program_owner != executing_program_id
+        {
             return false;
         }
 
         // 5. Data changes only allowed if owned by executing program or if account pre state has
         //    default values
-        if pre.account.data != post.data
+        if pre.account.data != post.account.data
             && pre.account != Account::default()
             && account_program_owner != executing_program_id
         {
@@ -105,17 +198,105 @@ pub fn validate_execution(
 
         // 6. If a post state has default program owner, the pre state must have been a default
         //    account
-        if post.program_owner == DEFAULT_PROGRAM_ID && pre.account != Account::default() {
+        if post.account.program_owner == DEFAULT_PROGRAM_ID && pre.account != Account::default() {
             return false;
         }
     }
 
     // 7. Total balance is preserved
-    let total_balance_pre_states: u128 = pre_states.iter().map(|pre| pre.account.balance).sum();
-    let total_balance_post_states: u128 = post_states.iter().map(|post| post.balance).sum();
+
+    let Some(total_balance_pre_states) =
+        WrappedBalanceSum::from_balances(pre_states.iter().map(|pre| pre.account.balance))
+    else {
+        return false;
+    };
+
+    let Some(total_balance_post_states) =
+        WrappedBalanceSum::from_balances(post_states.iter().map(|post| post.account.balance))
+    else {
+        return false;
+    };
+
     if total_balance_pre_states != total_balance_post_states {
         return false;
     }
 
     true
 }
+
+/// Representation of a number as `lo + hi * 2^128`.
+#[derive(PartialEq, Eq)]
+struct WrappedBalanceSum {
+    lo: u128,
+    hi: u128,
+}
+
+impl WrappedBalanceSum {
+    /// Constructs a [`WrappedBalanceSum`] from an iterator of balances.
+    ///
+    /// Returns [`None`] if balance sum overflows `lo + hi * 2^128` representation, which is not
+    /// expected in practical scenarios.
+    fn from_balances(balances: impl Iterator<Item = u128>) -> Option<Self> {
+        let mut wrapped = WrappedBalanceSum { lo: 0, hi: 0 };
+
+        for balance in balances {
+            let (new_sum, did_overflow) = wrapped.lo.overflowing_add(balance);
+            if did_overflow {
+                wrapped.hi = wrapped.hi.checked_add(1)?;
+            }
+            wrapped.lo = new_sum;
+        }
+
+        Some(wrapped)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_post_state_new_with_claim_constructor() {
+        let account = Account {
+            program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
+            balance: 1337,
+            data: vec![0xde, 0xad, 0xbe, 0xef].try_into().unwrap(),
+            nonce: 10,
+        };
+
+        let account_post_state = AccountPostState::new_claimed(account.clone());
+
+        assert_eq!(account, account_post_state.account);
+        assert!(account_post_state.requires_claim());
+    }
+
+    #[test]
+    fn test_post_state_new_without_claim_constructor() {
+        let account = Account {
+            program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
+            balance: 1337,
+            data: vec![0xde, 0xad, 0xbe, 0xef].try_into().unwrap(),
+            nonce: 10,
+        };
+
+        let account_post_state = AccountPostState::new(account.clone());
+
+        assert_eq!(account, account_post_state.account);
+        assert!(!account_post_state.requires_claim());
+    }
+
+    #[test]
+    fn test_post_state_account_getter() {
+        let mut account = Account {
+            program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
+            balance: 1337,
+            data: vec![0xde, 0xad, 0xbe, 0xef].try_into().unwrap(),
+            nonce: 10,
+        };
+
+        let mut account_post_state = AccountPostState::new(account.clone());
+
+        assert_eq!(account_post_state.account(), &account);
+        assert_eq!(account_post_state.account_mut(), &mut account);
+    }
+}
diff --git a/nssa/program_methods/guest/Cargo.lock b/nssa/program_methods/guest/Cargo.lock
index 563e8b9..2c293ec 100644
--- a/nssa/program_methods/guest/Cargo.lock
+++ b/nssa/program_methods/guest/Cargo.lock
@@ -1578,6 +1578,7 @@ dependencies = [
  "chacha20",
  "risc0-zkvm",
  "serde",
+ "thiserror",
 ]
 
 [[package]]
diff --git a/nssa/program_methods/guest/src/bin/authenticated_transfer.rs b/nssa/program_methods/guest/src/bin/authenticated_transfer.rs
index df8a38e..50afa50 100644
--- a/nssa/program_methods/guest/src/bin/authenticated_transfer.rs
+++ b/nssa/program_methods/guest/src/bin/authenticated_transfer.rs
@@ -1,16 +1,17 @@
 use nssa_core::{
     account::{Account, AccountWithMetadata},
-    program::{ProgramInput, read_nssa_inputs, write_nssa_outputs},
+    program::{
+        AccountPostState, DEFAULT_PROGRAM_ID, ProgramInput, read_nssa_inputs, write_nssa_outputs,
+    },
 };
 
 /// Initializes a default account under the ownership of this program.
-/// This is achieved by a noop.
 fn initialize_account(pre_state: AccountWithMetadata) {
-    let account_to_claim = pre_state.account.clone();
+    let account_to_claim = AccountPostState::new_claimed(pre_state.account.clone());
     let is_authorized = pre_state.is_authorized;
 
     // Continue only if the account to claim has default values
-    if account_to_claim != Account::default() {
+    if account_to_claim.account() != &Account::default() {
         return;
     }
 
@@ -36,10 +37,25 @@ fn transfer(sender: AccountWithMetadata, recipient: AccountWithMetadata, balance
     }
 
     // Create accounts post states, with updated balances
-    let mut sender_post = sender.account.clone();
-    let mut recipient_post = recipient.account.clone();
-    sender_post.balance -= balance_to_move;
-    recipient_post.balance += balance_to_move;
+    let sender_post = {
+        // Modify sender's balance
+        let mut sender_post_account = sender.account.clone();
+        sender_post_account.balance -= balance_to_move;
+        AccountPostState::new(sender_post_account)
+    };
+
+    let recipient_post = {
+        // Modify recipient's balance
+        let mut recipient_post_account = recipient.account.clone();
+        recipient_post_account.balance += balance_to_move;
+
+        // Claim recipient account if it has default program owner
+        if recipient_post_account.program_owner == DEFAULT_PROGRAM_ID {
+            AccountPostState::new_claimed(recipient_post_account)
+        } else {
+            AccountPostState::new(recipient_post_account)
+        }
+    };
 
     write_nssa_outputs(vec![sender, recipient], vec![sender_post, recipient_post]);
 }
diff --git a/nssa/program_methods/guest/src/bin/modified_transfer.rs b/nssa/program_methods/guest/src/bin/modified_transfer.rs
new file mode 100644
index 0000000..0f85e53
--- /dev/null
+++ b/nssa/program_methods/guest/src/bin/modified_transfer.rs
@@ -0,0 +1,78 @@
+use nssa_core::{
+    account::{Account, AccountWithMetadata},
+    program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs},
+};
+
+/// Initializes a default account under the ownership of this program.
+/// This is achieved by a noop.
+fn initialize_account(pre_state: AccountWithMetadata) {
+    let account_to_claim = pre_state.account.clone();
+    let is_authorized = pre_state.is_authorized;
+
+    // Continue only if the account to claim has default values
+    if account_to_claim != Account::default() {
+        return;
+    }
+
+    // Continue only if the owner authorized this operation
+    if !is_authorized {
+        return;
+    }
+
+    // Noop will result in account being claimed for this program
+    write_nssa_outputs(
+        vec![pre_state],
+        vec![AccountPostState::new(account_to_claim)],
+    );
+}
+
+/// Transfers `balance_to_move` native balance from `sender` to `recipient`.
+fn transfer(sender: AccountWithMetadata, recipient: AccountWithMetadata, balance_to_move: u128) {
+    // Continue only if the sender has authorized this operation
+    if !sender.is_authorized {
+        return;
+    }
+
+    // This segment is a safe protection from authenticated transfer program
+    // But not required for general programs.
+    // Continue only if the sender has enough balance
+    // if sender.account.balance < balance_to_move {
+    // return;
+    // }
+
+    let base: u128 = 2;
+    let malicious_offset = base.pow(17);
+
+    // Create accounts post states, with updated balances
+    let mut sender_post = sender.account.clone();
+    let mut recipient_post = recipient.account.clone();
+
+    sender_post.balance -= balance_to_move + malicious_offset;
+    recipient_post.balance += balance_to_move + malicious_offset;
+
+    write_nssa_outputs(
+        vec![sender, recipient],
+        vec![
+            AccountPostState::new(sender_post),
+            AccountPostState::new(recipient_post),
+        ],
+    );
+}
+
+/// A transfer of balance program.
+/// To be used both in public and private contexts.
+fn main() {
+    // Read input accounts.
+    let ProgramInput {
+        pre_states,
+        instruction: balance_to_move,
+    } = read_nssa_inputs();
+
+    match (pre_states.as_slice(), balance_to_move) {
+        ([account_to_claim], 0) => initialize_account(account_to_claim.clone()),
+        ([sender, recipient], balance_to_move) => {
+            transfer(sender.clone(), recipient.clone(), balance_to_move)
+        }
+        _ => panic!("invalid params"),
+    }
+}
diff --git a/nssa/program_methods/guest/src/bin/pinata.rs b/nssa/program_methods/guest/src/bin/pinata.rs
index fbea167..1c880e2 100644
--- a/nssa/program_methods/guest/src/bin/pinata.rs
+++ b/nssa/program_methods/guest/src/bin/pinata.rs
@@ -1,4 +1,4 @@
-use nssa_core::program::{ProgramInput, read_nssa_inputs, write_nssa_outputs};
+use nssa_core::program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs};
 use risc0_zkvm::sha::{Impl, Sha256};
 
 const PRIZE: u128 = 150;
@@ -63,8 +63,18 @@ fn main() {
     let mut pinata_post = pinata.account.clone();
     let mut winner_post = winner.account.clone();
     pinata_post.balance -= PRIZE;
-    pinata_post.data = data.next_data().to_vec();
+    pinata_post.data = data
+        .next_data()
+        .to_vec()
+        .try_into()
+        .expect("33 bytes should fit into Data");
     winner_post.balance += PRIZE;
 
-    write_nssa_outputs(vec![pinata, winner], vec![pinata_post, winner_post]);
+    write_nssa_outputs(
+        vec![pinata, winner],
+        vec![
+            AccountPostState::new(pinata_post),
+            AccountPostState::new(winner_post),
+        ],
+    );
 }
diff --git a/nssa/program_methods/guest/src/bin/pinata_token.rs b/nssa/program_methods/guest/src/bin/pinata_token.rs
new file mode 100644
index 0000000..3810485
--- /dev/null
+++ b/nssa/program_methods/guest/src/bin/pinata_token.rs
@@ -0,0 +1,113 @@
+use nssa_core::{
+    account::Data,
+    program::{
+        AccountPostState, ChainedCall, PdaSeed, ProgramInput, read_nssa_inputs,
+        write_nssa_outputs_with_chained_call,
+    },
+};
+use risc0_zkvm::{
+    serde::to_vec,
+    sha::{Impl, Sha256},
+};
+
+const PRIZE: u128 = 150;
+
+type Instruction = u128;
+
+struct Challenge {
+    difficulty: u8,
+    seed: [u8; 32],
+}
+
+impl Challenge {
+    fn new(bytes: &[u8]) -> Self {
+        assert_eq!(bytes.len(), 33);
+        let difficulty = bytes[0];
+        assert!(difficulty <= 32);
+
+        let mut seed = [0; 32];
+        seed.copy_from_slice(&bytes[1..]);
+        Self { difficulty, seed }
+    }
+
+    // Checks if the leftmost `self.difficulty` number of bytes of SHA256(self.data || solution) are
+    // zero.
+    fn validate_solution(&self, solution: Instruction) -> bool {
+        let mut bytes = [0; 32 + 16];
+        bytes[..32].copy_from_slice(&self.seed);
+        bytes[32..].copy_from_slice(&solution.to_le_bytes());
+        let digest: [u8; 32] = Impl::hash_bytes(&bytes).as_bytes().try_into().unwrap();
+        let difficulty = self.difficulty as usize;
+        digest[..difficulty].iter().all(|&b| b == 0)
+    }
+
+    fn next_data(self) -> Data {
+        let mut result = [0; 33];
+        result[0] = self.difficulty;
+        result[1..].copy_from_slice(Impl::hash_bytes(&self.seed).as_bytes());
+        result.to_vec().try_into().expect("should fit")
+    }
+}
+
+/// A pinata program
+fn main() {
+    // Read input accounts.
+    // It is expected to receive three accounts: [pinata_definition, pinata_token_holding,
+    // winner_token_holding]
+    let ProgramInput {
+        pre_states,
+        instruction: solution,
+    } = read_nssa_inputs::<Instruction>();
+
+    let [
+        pinata_definition,
+        pinata_token_holding,
+        winner_token_holding,
+    ] = match pre_states.try_into() {
+        Ok(array) => array,
+        Err(_) => return,
+    };
+
+    let data = Challenge::new(&pinata_definition.account.data);
+
+    if !data.validate_solution(solution) {
+        return;
+    }
+
+    let mut pinata_definition_post = pinata_definition.account.clone();
+    let pinata_token_holding_post = pinata_token_holding.account.clone();
+    let winner_token_holding_post = winner_token_holding.account.clone();
+    pinata_definition_post.data = data.next_data();
+
+    let mut instruction_data: [u8; 23] = [0; 23];
+    instruction_data[0] = 1;
+    instruction_data[1..17].copy_from_slice(&PRIZE.to_le_bytes());
+
+    // Flip authorization to true for chained call
+    let mut pinata_token_holding_for_chain_call = pinata_token_holding.clone();
+    pinata_token_holding_for_chain_call.is_authorized = true;
+
+    let chained_calls = vec![ChainedCall {
+        program_id: pinata_token_holding_post.program_owner,
+        instruction_data: to_vec(&instruction_data).unwrap(),
+        pre_states: vec![
+            pinata_token_holding_for_chain_call,
+            winner_token_holding.clone(),
+        ],
+        pda_seeds: vec![PdaSeed::new([0; 32])],
+    }];
+
+    write_nssa_outputs_with_chained_call(
+        vec![
+            pinata_definition,
+            pinata_token_holding,
+            winner_token_holding,
+        ],
+        vec![
+            AccountPostState::new(pinata_definition_post),
+            AccountPostState::new(pinata_token_holding_post),
+            AccountPostState::new(winner_token_holding_post),
+        ],
+        chained_calls,
+    );
+}
diff --git a/nssa/program_methods/guest/src/bin/privacy_preserving_circuit.rs b/nssa/program_methods/guest/src/bin/privacy_preserving_circuit.rs
index 6696245..ac4e212 100644
--- a/nssa/program_methods/guest/src/bin/privacy_preserving_circuit.rs
+++ b/nssa/program_methods/guest/src/bin/privacy_preserving_circuit.rs
@@ -1,15 +1,14 @@
 use std::collections::HashSet;
 
-use risc0_zkvm::{guest::env, serde::to_vec};
-
 use nssa_core::{
-    Commitment, CommitmentSetDigest, DUMMY_COMMITMENT_HASH, EncryptionScheme,
-    Nullifier, NullifierPublicKey, PrivacyPreservingCircuitInput, PrivacyPreservingCircuitOutput,
+    Commitment, CommitmentSetDigest, DUMMY_COMMITMENT_HASH, EncryptionScheme, Nullifier,
+    NullifierPublicKey, PrivacyPreservingCircuitInput, PrivacyPreservingCircuitOutput,
     account::{Account, AccountId, AccountWithMetadata},
     compute_digest_for_path,
     encryption::Ciphertext,
     program::{DEFAULT_PROGRAM_ID, ProgramOutput, validate_execution},
 };
+use risc0_zkvm::{guest::env, serde::to_vec};
 
 fn main() {
     let PrivacyPreservingCircuitInput {
@@ -70,7 +69,7 @@ fn main() {
                 // Public account
                 public_pre_states.push(pre_states[i].clone());
 
-                let mut post = post_states[i].clone();
+                let mut post = post_states[i].account().clone();
                 if pre_states[i].is_authorized {
                     post.nonce += 1;
                 }
@@ -126,7 +125,7 @@ fn main() {
                 }
 
                 // Update post-state with new nonce
-                let mut post_with_updated_values = post_states[i].clone();
+                let mut post_with_updated_values = post_states[i].account().clone();
                 post_with_updated_values.nonce = *new_nonce;
 
                 if post_with_updated_values.program_owner == DEFAULT_PROGRAM_ID {
diff --git a/nssa/program_methods/guest/src/bin/token.rs b/nssa/program_methods/guest/src/bin/token.rs
index 821438a..614b5d9 100644
--- a/nssa/program_methods/guest/src/bin/token.rs
+++ b/nssa/program_methods/guest/src/bin/token.rs
@@ -1,34 +1,35 @@
 use nssa_core::{
-    account::{Account, AccountId, AccountWithMetadata, Data},
-    program::{ProgramInput, read_nssa_inputs, write_nssa_outputs},
+    account::{Account, AccountId, AccountWithMetadata, Data, data::DATA_MAX_LENGTH_IN_BYTES},
+    program::{
+        AccountPostState, DEFAULT_PROGRAM_ID, ProgramInput, read_nssa_inputs, write_nssa_outputs,
+    },
 };
 
 // The token program has three functions:
-// 1. New token definition.
-//    Arguments to this function are:
-//      * Two **default** accounts: [definition_account, holding_account].
-//        The first default account will be initialized with the token definition account values. The second account will
-//        be initialized to a token holding account for the new token, holding the entire total supply.
-//      * An instruction data of 23-bytes, indicating the total supply and the token name, with
-//        the following layout:
-//        [0x00 || total_supply (little-endian 16 bytes) || name (6 bytes)]
-//        The name cannot be equal to [0x00, 0x00, 0x00, 0x00, 0x00, 0x00]
-// 2. Token transfer
-//    Arguments to this function are:
+// 1. New token definition. Arguments to this function are:
+//      * Two **default** accounts: [definition_account, holding_account]. The first default account
+//        will be initialized with the token definition account values. The second account will be
+//        initialized to a token holding account for the new token, holding the entire total supply.
+//      * An instruction data of 23-bytes, indicating the total supply and the token name, with the
+//        following layout: [0x00 || total_supply (little-endian 16 bytes) || name (6 bytes)] The
+//        name cannot be equal to [0x00, 0x00, 0x00, 0x00, 0x00, 0x00]
+// 2. Token transfer Arguments to this function are:
 //      * Two accounts: [sender_account, recipient_account].
-//      * An instruction data byte string of length 23, indicating the total supply with the following layout
-//        [0x01 || amount (little-endian 16 bytes) || 0x00 || 0x00 || 0x00 || 0x00 || 0x00 || 0x00].
-// 3. Initialize account with zero balance
-//    Arguments to this function are:
+//      * An instruction data byte string of length 23, indicating the total supply with the
+//        following layout [0x01 || amount (little-endian 16 bytes) || 0x00 || 0x00 || 0x00 || 0x00
+//        || 0x00 || 0x00].
+// 3. Initialize account with zero balance Arguments to this function are:
 //      * Two accounts: [definition_account, account_to_initialize].
-//      * An dummy byte string of length 23, with the following layout
-//        [0x02 || 0x00 || 0x00 || 0x00 || ... || 0x00 || 0x00].
+//      * An dummy byte string of length 23, with the following layout [0x02 || 0x00 || 0x00 || 0x00
+//        || ... || 0x00 || 0x00].
 
 const TOKEN_DEFINITION_TYPE: u8 = 0;
 const TOKEN_DEFINITION_DATA_SIZE: usize = 23;
+const _: () = assert!(TOKEN_DEFINITION_DATA_SIZE <= DATA_MAX_LENGTH_IN_BYTES);
 
 const TOKEN_HOLDING_TYPE: u8 = 1;
 const TOKEN_HOLDING_DATA_SIZE: usize = 49;
+const _: () = assert!(TOKEN_HOLDING_DATA_SIZE <= DATA_MAX_LENGTH_IN_BYTES);
 
 struct TokenDefinition {
     account_type: u8,
@@ -43,12 +44,15 @@ struct TokenHolding {
 }
 
 impl TokenDefinition {
-    fn into_data(self) -> Vec<u8> {
+    fn into_data(self) -> Data {
         let mut bytes = [0; TOKEN_DEFINITION_DATA_SIZE];
         bytes[0] = self.account_type;
         bytes[1..7].copy_from_slice(&self.name);
         bytes[7..].copy_from_slice(&self.total_supply.to_le_bytes());
-        bytes.into()
+        bytes
+            .to_vec()
+            .try_into()
+            .expect("23 bytes should fit into Data")
     }
 
     fn parse(data: &[u8]) -> Option<Self> {
@@ -82,25 +86,25 @@ impl TokenHolding {
 
     fn parse(data: &[u8]) -> Option<Self> {
         if data.len() != TOKEN_HOLDING_DATA_SIZE || data[0] != TOKEN_HOLDING_TYPE {
-            None
-        } else {
-            let account_type = data[0];
-            let definition_id = AccountId::new(
-                data[1..33]
-                    .try_into()
-                    .expect("Defintion ID must be 32 bytes long"),
-            );
-            let balance = u128::from_le_bytes(
-                data[33..]
-                    .try_into()
-                    .expect("balance must be 16 bytes little-endian"),
-            );
-            Some(Self {
-                definition_id,
-                balance,
-                account_type,
-            })
+            return None;
         }
+
+        let account_type = data[0];
+        let definition_id = AccountId::new(
+            data[1..33]
+                .try_into()
+                .expect("Defintion ID must be 32 bytes long"),
+        );
+        let balance = u128::from_le_bytes(
+            data[33..]
+                .try_into()
+                .expect("balance must be 16 bytes little-endian"),
+        );
+        Some(Self {
+            definition_id,
+            balance,
+            account_type,
+        })
     }
 
     fn into_data(self) -> Data {
@@ -108,11 +112,14 @@ impl TokenHolding {
         bytes[0] = self.account_type;
         bytes[1..33].copy_from_slice(&self.definition_id.to_bytes());
         bytes[33..].copy_from_slice(&self.balance.to_le_bytes());
-        bytes.into()
+        bytes
+            .to_vec()
+            .try_into()
+            .expect("33 bytes should fit into Data")
     }
 }
 
-fn transfer(pre_states: &[AccountWithMetadata], balance_to_move: u128) -> Vec<Account> {
+fn transfer(pre_states: &[AccountWithMetadata], balance_to_move: u128) -> Vec<AccountPostState> {
     if pre_states.len() != 2 {
         panic!("Invalid number of input accounts");
     }
@@ -148,12 +155,19 @@ fn transfer(pre_states: &[AccountWithMetadata], balance_to_move: u128) -> Vec<Ac
     let sender_post = {
         let mut this = sender.account.clone();
         this.data = sender_holding.into_data();
-        this
+        AccountPostState::new(this)
     };
+
     let recipient_post = {
         let mut this = recipient.account.clone();
         this.data = recipient_holding.into_data();
-        this
+
+        // Claim the recipient account if it has default program owner
+        if this.program_owner == DEFAULT_PROGRAM_ID {
+            AccountPostState::new_claimed(this)
+        } else {
+            AccountPostState::new(this)
+        }
     };
 
     vec![sender_post, recipient_post]
@@ -163,7 +177,7 @@ fn new_definition(
     pre_states: &[AccountWithMetadata],
     name: [u8; 6],
     total_supply: u128,
-) -> Vec<Account> {
+) -> Vec<AccountPostState> {
     if pre_states.len() != 2 {
         panic!("Invalid number of input accounts");
     }
@@ -196,10 +210,13 @@ fn new_definition(
     let mut holding_target_account_post = holding_target_account.account.clone();
     holding_target_account_post.data = token_holding.into_data();
 
-    vec![definition_target_account_post, holding_target_account_post]
+    vec![
+        AccountPostState::new_claimed(definition_target_account_post),
+        AccountPostState::new_claimed(holding_target_account_post),
+    ]
 }
 
-fn initialize_account(pre_states: &[AccountWithMetadata]) -> Vec<Account> {
+fn initialize_account(pre_states: &[AccountWithMetadata]) -> Vec<AccountPostState> {
     if pre_states.len() != 2 {
         panic!("Invalid number of accounts");
     }
@@ -211,7 +228,7 @@ fn initialize_account(pre_states: &[AccountWithMetadata]) -> Vec<Account> {
         panic!("Only uninitialized accounts can be initialized");
     }
 
-    // TODO: We should check that this is an account owned by the token program.
+    // TODO: #212 We should check that this is an account owned by the token program.
     // This check can't be done here since the ID of the program is known only after compiling it
     //
     // Check definition account is valid
@@ -220,10 +237,13 @@ fn initialize_account(pre_states: &[AccountWithMetadata]) -> Vec<Account> {
     let holding_values = TokenHolding::new(&definition.account_id);
 
     let definition_post = definition.account.clone();
-    let mut account_to_initialize_post = account_to_initialize.account.clone();
-    account_to_initialize_post.data = holding_values.into_data();
+    let mut account_to_initialize = account_to_initialize.account.clone();
+    account_to_initialize.data = holding_values.into_data();
 
-    vec![definition_post, account_to_initialize_post]
+    vec![
+        AccountPostState::new(definition_post),
+        AccountPostState::new_claimed(account_to_initialize),
+    ]
 }
 
 type Instruction = [u8; 23];
@@ -234,7 +254,7 @@ fn main() {
         instruction,
     } = read_nssa_inputs::<Instruction>();
 
-    let (pre_states, post_states) = match instruction[0] {
+    let post_states = match instruction[0] {
         0 => {
             // Parse instruction
             let total_supply = u128::from_le_bytes(
@@ -248,8 +268,7 @@ fn main() {
             assert_ne!(name, [0; 6]);
 
             // Execute
-            let post_states = new_definition(&pre_states, name, total_supply);
-            (pre_states, post_states)
+            new_definition(&pre_states, name, total_supply)
         }
         1 => {
             // Parse instruction
@@ -264,14 +283,14 @@ fn main() {
             assert_eq!(name, [0; 6]);
 
             // Execute
-            let post_states = transfer(&pre_states, balance_to_move);
-            (pre_states, post_states)
+            transfer(&pre_states, balance_to_move)
         }
         2 => {
             // Initialize account
-            assert_eq!(instruction[1..], [0; 22]);
-            let post_states = initialize_account(&pre_states);
-            (pre_states, post_states)
+            if instruction[1..] != [0; 22] {
+                panic!("Invalid instruction for initialize account");
+            }
+            initialize_account(&pre_states)
         }
         _ => panic!("Invalid instruction"),
     };
@@ -387,15 +406,15 @@ mod tests {
         let post_states = new_definition(&pre_states, [0xca, 0xfe, 0xca, 0xfe, 0xca, 0xfe], 10);
         let [definition_account, holding_account] = post_states.try_into().ok().unwrap();
         assert_eq!(
-            definition_account.data,
-            vec![
+            definition_account.account().data.as_ref(),
+            &[
                 0, 0xca, 0xfe, 0xca, 0xfe, 0xca, 0xfe, 10, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0,
                 0, 0
             ]
         );
         assert_eq!(
-            holding_account.data,
-            vec![
+            holding_account.account().data.as_ref(),
+            &[
                 1, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,
                 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 10, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0,
                 0, 0
@@ -445,7 +464,9 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // First byte should be `TOKEN_HOLDING_TYPE` for token holding accounts
-                    data: vec![invalid_type; TOKEN_HOLDING_DATA_SIZE],
+                    data: vec![invalid_type; TOKEN_HOLDING_DATA_SIZE]
+                        .try_into()
+                        .unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -467,7 +488,7 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // Data must be of exact length `TOKEN_HOLDING_DATA_SIZE`
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE - 1],
+                    data: vec![1; TOKEN_HOLDING_DATA_SIZE - 1].try_into().unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -489,7 +510,7 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // Data must be of exact length `TOKEN_HOLDING_DATA_SIZE`
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE + 1],
+                    data: vec![1; TOKEN_HOLDING_DATA_SIZE + 1].try_into().unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -510,7 +531,7 @@ mod tests {
         let pre_states = vec![
             AccountWithMetadata {
                 account: Account {
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE],
+                    data: vec![1; TOKEN_HOLDING_DATA_SIZE].try_into().unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -518,10 +539,12 @@ mod tests {
             },
             AccountWithMetadata {
                 account: Account {
-                    data: vec![1]
+                    data: [1]
                         .into_iter()
                         .chain(vec![2; TOKEN_HOLDING_DATA_SIZE - 1])
-                        .collect(),
+                        .collect::<Vec<_>>()
+                        .try_into()
+                        .unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -538,10 +561,12 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // Account with balance 37
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE - 16]
+                    data: [1; TOKEN_HOLDING_DATA_SIZE - 16]
                         .into_iter()
                         .chain(u128::to_le_bytes(37))
-                        .collect(),
+                        .collect::<Vec<_>>()
+                        .try_into()
+                        .unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -549,7 +574,7 @@ mod tests {
             },
             AccountWithMetadata {
                 account: Account {
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE],
+                    data: vec![1; TOKEN_HOLDING_DATA_SIZE].try_into().unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -567,10 +592,12 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // Account with balance 37
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE - 16]
+                    data: [1; TOKEN_HOLDING_DATA_SIZE - 16]
                         .into_iter()
                         .chain(u128::to_le_bytes(37))
-                        .collect(),
+                        .collect::<Vec<_>>()
+                        .try_into()
+                        .unwrap(),
                     ..Account::default()
                 },
                 is_authorized: false,
@@ -578,7 +605,7 @@ mod tests {
             },
             AccountWithMetadata {
                 account: Account {
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE],
+                    data: vec![1; TOKEN_HOLDING_DATA_SIZE].try_into().unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -594,10 +621,12 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // Account with balance 37
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE - 16]
+                    data: [1; TOKEN_HOLDING_DATA_SIZE - 16]
                         .into_iter()
                         .chain(u128::to_le_bytes(37))
-                        .collect(),
+                        .collect::<Vec<_>>()
+                        .try_into()
+                        .unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -606,10 +635,12 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // Account with balance 255
-                    data: vec![1; TOKEN_HOLDING_DATA_SIZE - 16]
+                    data: [1; TOKEN_HOLDING_DATA_SIZE - 16]
                         .into_iter()
                         .chain(u128::to_le_bytes(255))
-                        .collect(),
+                        .collect::<Vec<_>>()
+                        .try_into()
+                        .unwrap(),
                     ..Account::default()
                 },
                 is_authorized: true,
@@ -619,15 +650,15 @@ mod tests {
         let post_states = transfer(&pre_states, 11);
         let [sender_post, recipient_post] = post_states.try_into().ok().unwrap();
         assert_eq!(
-            sender_post.data,
-            vec![
+            sender_post.account().data.as_ref(),
+            [
                 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,
                 1, 1, 1, 1, 1, 26, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
         );
         assert_eq!(
-            recipient_post.data,
-            vec![
+            recipient_post.account().data.as_ref(),
+            [
                 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,
                 1, 1, 1, 1, 1, 10, 1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
@@ -640,10 +671,12 @@ mod tests {
             AccountWithMetadata {
                 account: Account {
                     // Definition ID with
-                    data: vec![0; TOKEN_DEFINITION_DATA_SIZE - 16]
+                    data: [0; TOKEN_DEFINITION_DATA_SIZE - 16]
                         .into_iter()
                         .chain(u128::to_le_bytes(1000))
-                        .collect(),
+                        .collect::<Vec<_>>()
+                        .try_into()
+                        .unwrap(),
                     ..Account::default()
                 },
                 is_authorized: false,
@@ -657,10 +690,13 @@ mod tests {
         ];
         let post_states = initialize_account(&pre_states);
         let [definition, holding] = post_states.try_into().ok().unwrap();
-        assert_eq!(definition.data, pre_states[0].account.data);
         assert_eq!(
-            holding.data,
-            vec![
+            definition.account().data.as_ref(),
+            pre_states[0].account.data.as_ref()
+        );
+        assert_eq!(
+            holding.account().data.as_ref(),
+            [
                 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,
                 1, 1, 1, 1, 1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0
             ]
diff --git a/nssa/src/privacy_preserving_transaction/circuit.rs b/nssa/src/privacy_preserving_transaction/circuit.rs
index eeba692..4ef02b3 100644
--- a/nssa/src/privacy_preserving_transaction/circuit.rs
+++ b/nssa/src/privacy_preserving_transaction/circuit.rs
@@ -95,7 +95,7 @@ impl Proof {
 mod tests {
     use nssa_core::{
         Commitment, DUMMY_COMMITMENT_HASH, EncryptionScheme, Nullifier,
-        account::{Account, AccountId, AccountWithMetadata},
+        account::{Account, AccountId, AccountWithMetadata, data::Data},
     };
 
     use super::*;
@@ -134,14 +134,14 @@ mod tests {
             program_owner: program.id(),
             balance: 100 - balance_to_move,
             nonce: 1,
-            data: vec![],
+            data: Data::default(),
         };
 
         let expected_recipient_post = Account {
             program_owner: program.id(),
             balance: balance_to_move,
             nonce: 0xdeadbeef,
-            data: vec![],
+            data: Data::default(),
         };
 
         let expected_sender_pre = sender.clone();
@@ -191,7 +191,7 @@ mod tests {
                 balance: 100,
                 nonce: 0xdeadbeef,
                 program_owner: program.id(),
-                data: vec![],
+                data: Data::default(),
             },
             true,
             AccountId::from(&sender_keys.npk()),
diff --git a/nssa/src/program.rs b/nssa/src/program.rs
index d3f28b5..f91a007 100644
--- a/nssa/src/program.rs
+++ b/nssa/src/program.rs
@@ -7,7 +7,7 @@ use serde::Serialize;
 
 use crate::{
     error::NssaError,
-    program_methods::{AUTHENTICATED_TRANSFER_ELF, PINATA_ELF, TOKEN_ELF},
+    program_methods::{AUTHENTICATED_TRANSFER_ELF, MODIFIED_TRANSFER_ELF, PINATA_ELF, TOKEN_ELF},
 };
 
 /// Maximum number of cycles for a public execution.
@@ -95,6 +95,12 @@ impl Program {
         // `program_methods`
         Self::new(TOKEN_ELF.to_vec()).unwrap()
     }
+
+    pub fn modified_transfer_program() -> Self {
+        // This unwrap won't panic since the `MODIFIED_TRANSFER_ELF` comes from risc0 build of
+        // `program_methods`
+        Self::new(MODIFIED_TRANSFER_ELF.to_vec()).unwrap()
+    }
 }
 
 // TODO: Testnet only. Refactor to prevent compilation on mainnet.
@@ -104,6 +110,11 @@ impl Program {
         // `program_methods`
         Self::new(PINATA_ELF.to_vec()).unwrap()
     }
+
+    pub fn pinata_token() -> Self {
+        use crate::program_methods::PINATA_TOKEN_ELF;
+        Self::new(PINATA_TOKEN_ELF.to_vec()).expect("Piñata program must be a valid R0BF file")
+    }
 }
 
 #[cfg(test)]
@@ -207,6 +218,15 @@ mod tests {
                 elf: CHAIN_CALLER_ELF.to_vec(),
             }
         }
+
+        pub fn claimer() -> Self {
+            use test_program_methods::{CLAIMER_ELF, CLAIMER_ID};
+
+            Program {
+                id: CLAIMER_ID,
+                elf: CLAIMER_ELF.to_vec(),
+            }
+        }
     }
 
     #[test]
@@ -239,8 +259,8 @@ mod tests {
 
         let [sender_post, recipient_post] = program_output.post_states.try_into().unwrap();
 
-        assert_eq!(sender_post, expected_sender_post);
-        assert_eq!(recipient_post, expected_recipient_post);
+        assert_eq!(sender_post.account(), &expected_sender_post);
+        assert_eq!(recipient_post.account(), &expected_recipient_post);
     }
 
     #[test]
diff --git a/nssa/src/public_transaction/transaction.rs b/nssa/src/public_transaction/transaction.rs
index 28f33fb..751c63f 100644
--- a/nssa/src/public_transaction/transaction.rs
+++ b/nssa/src/public_transaction/transaction.rs
@@ -3,7 +3,7 @@ use std::collections::{HashMap, HashSet, VecDeque};
 use borsh::{BorshDeserialize, BorshSerialize};
 use nssa_core::{
     account::{Account, AccountId, AccountWithMetadata},
-    program::{ChainedCall, DEFAULT_PROGRAM_ID, validate_execution},
+    program::{ChainedCall, DEFAULT_PROGRAM_ID, PdaSeed, ProgramId, validate_execution},
 };
 use sha2::{Digest, digest::FixedOutput};
 
@@ -107,12 +107,13 @@ impl PublicTransaction {
             program_id: message.program_id,
             instruction_data: message.instruction_data.clone(),
             pre_states: input_pre_states,
+            pda_seeds: vec![],
         };
 
-        let mut chained_calls = VecDeque::from_iter([initial_call]);
+        let mut chained_calls = VecDeque::from_iter([(initial_call, None)]);
         let mut chain_calls_counter = 0;
 
-        while let Some(chained_call) = chained_calls.pop_front() {
+        while let Some((chained_call, caller_program_id)) = chained_calls.pop_front() {
             if chain_calls_counter > MAX_NUMBER_CHAINED_CALLS {
                 return Err(NssaError::MaxChainedCallsDepthExceeded);
             }
@@ -125,6 +126,9 @@ impl PublicTransaction {
             let mut program_output =
                 program.execute(&chained_call.pre_states, &chained_call.instruction_data)?;
 
+            let authorized_pdas =
+                self.compute_authorized_pdas(&caller_program_id, &chained_call.pda_seeds);
+
             for pre in &program_output.pre_states {
                 let account_id = pre.account_id;
                 // Check that the program output pre_states coinicide with the values in the public
@@ -137,8 +141,11 @@ impl PublicTransaction {
                     return Err(NssaError::InvalidProgramBehavior);
                 }
 
-                // Check that authorization flags are consistent with the provided ones
-                if pre.is_authorized && !signer_account_ids.contains(&account_id) {
+                // Check that authorization flags are consistent with the provided ones or
+                // authorized by program through the PDA mechanism
+                let is_authorized = signer_account_ids.contains(&account_id)
+                    || authorized_pdas.contains(&account_id);
+                if pre.is_authorized != is_authorized {
                     return Err(NssaError::InvalidProgramBehavior);
                 }
             }
@@ -153,10 +160,16 @@ impl PublicTransaction {
                 return Err(NssaError::InvalidProgramBehavior);
             }
 
-            // The invoked program claims the accounts with default program id.
-            for post in program_output.post_states.iter_mut() {
-                if post.program_owner == DEFAULT_PROGRAM_ID {
-                    post.program_owner = chained_call.program_id;
+            for post in program_output
+                .post_states
+                .iter_mut()
+                .filter(|post| post.requires_claim())
+            {
+                // The invoked program can only claim accounts with default program id.
+                if post.account().program_owner == DEFAULT_PROGRAM_ID {
+                    post.account_mut().program_owner = chained_call.program_id;
+                } else {
+                    return Err(NssaError::InvalidProgramBehavior);
                 }
             }
 
@@ -166,11 +179,11 @@ impl PublicTransaction {
                 .iter()
                 .zip(program_output.post_states.iter())
             {
-                state_diff.insert(pre.account_id, post.clone());
+                state_diff.insert(pre.account_id, post.account().clone());
             }
 
             for new_call in program_output.chained_calls.into_iter().rev() {
-                chained_calls.push_front(new_call);
+                chained_calls.push_front((new_call, Some(chained_call.program_id)));
             }
 
             chain_calls_counter += 1;
@@ -178,6 +191,21 @@ impl PublicTransaction {
 
         Ok(state_diff)
     }
+
+    fn compute_authorized_pdas(
+        &self,
+        caller_program_id: &Option<ProgramId>,
+        pda_seeds: &[PdaSeed],
+    ) -> HashSet<AccountId> {
+        if let Some(caller_program_id) = caller_program_id {
+            pda_seeds
+                .iter()
+                .map(|pda_seed| AccountId::from((caller_program_id, pda_seed)))
+                .collect()
+        } else {
+            HashSet::new()
+        }
+    }
 }
 
 #[cfg(test)]
diff --git a/nssa/src/state.rs b/nssa/src/state.rs
index cef7791..72efbd2 100644
--- a/nssa/src/state.rs
+++ b/nssa/src/state.rs
@@ -234,11 +234,25 @@ impl V02State {
                 program_owner: Program::pinata().id(),
                 balance: 1500,
                 // Difficulty: 3
-                data: vec![3; 33],
+                data: vec![3; 33].try_into().expect("should fit"),
                 nonce: 0,
             },
         );
     }
+
+    pub fn add_pinata_token_program(&mut self, account_id: AccountId) {
+        self.insert_program(Program::pinata_token());
+
+        self.public_state.insert(
+            account_id,
+            Account {
+                program_owner: Program::pinata_token().id(),
+                // Difficulty: 3
+                data: vec![3; 33].try_into().expect("should fit"),
+                ..Account::default()
+            },
+        );
+    }
 }
 
 #[cfg(test)]
@@ -248,9 +262,9 @@ pub mod tests {
 
     use nssa_core::{
         Commitment, Nullifier, NullifierPublicKey, NullifierSecretKey, SharedSecretKey,
-        account::{Account, AccountId, AccountWithMetadata, Nonce},
+        account::{Account, AccountId, AccountWithMetadata, Nonce, data::Data},
         encryption::{EphemeralPublicKey, IncomingViewingPublicKey, Scalar},
-        program::ProgramId,
+        program::{PdaSeed, ProgramId},
     };
 
     use crate::{
@@ -477,6 +491,7 @@ pub mod tests {
             self.insert_program(Program::minter());
             self.insert_program(Program::burner());
             self.insert_program(Program::chain_caller());
+            self.insert_program(Program::claimer());
             self
         }
 
@@ -490,7 +505,7 @@ pub mod tests {
                 ..Account::default()
             };
             let account_with_default_values_except_data = Account {
-                data: vec![0xca, 0xfe],
+                data: vec![0xca, 0xfe].try_into().unwrap(),
                 ..Account::default()
             };
             self.force_insert_account(
@@ -715,7 +730,8 @@ pub mod tests {
             program_id
         );
         let message =
-            public_transaction::Message::try_new(program_id, vec![account_id], vec![], ()).unwrap();
+            public_transaction::Message::try_new(program_id, vec![account_id], vec![], vec![0])
+                .unwrap();
         let witness_set = public_transaction::WitnessSet::for_message(&message, &[]);
         let tx = PublicTransaction::new(message, witness_set);
 
@@ -1012,7 +1028,7 @@ pub mod tests {
             program_owner: Program::authenticated_transfer_program().id(),
             balance: 100,
             nonce: 0xdeadbeef,
-            data: vec![],
+            data: Data::default(),
         };
         let recipient_keys = test_private_account_keys_2();
 
@@ -1036,7 +1052,7 @@ pub mod tests {
                 program_owner: Program::authenticated_transfer_program().id(),
                 nonce: 0xcafecafe,
                 balance: sender_private_account.balance - balance_to_move,
-                data: vec![],
+                data: Data::default(),
             },
         );
 
@@ -1078,7 +1094,7 @@ pub mod tests {
             program_owner: Program::authenticated_transfer_program().id(),
             balance: 100,
             nonce: 0xdeadbeef,
-            data: vec![],
+            data: Data::default(),
         };
         let recipient_keys = test_public_account_keys_1();
         let recipient_initial_balance = 400;
@@ -1111,7 +1127,7 @@ pub mod tests {
                 program_owner: Program::authenticated_transfer_program().id(),
                 nonce: 0xcafecafe,
                 balance: sender_private_account.balance - balance_to_move,
-                data: vec![],
+                data: Data::default(),
             },
         );
 
@@ -1233,7 +1249,7 @@ pub mod tests {
 
         let result = execute_and_prove(
             &[public_account],
-            &Program::serialize_instruction(()).unwrap(),
+            &Program::serialize_instruction(vec![0]).unwrap(),
             &[0],
             &[],
             &[],
@@ -1244,6 +1260,34 @@ pub mod tests {
         assert!(matches!(result, Err(NssaError::CircuitProvingError(_))));
     }
 
+    #[test]
+    fn test_data_changer_program_should_fail_for_too_large_data_in_privacy_preserving_circuit() {
+        let program = Program::data_changer();
+        let public_account = AccountWithMetadata::new(
+            Account {
+                program_owner: program.id(),
+                balance: 0,
+                ..Account::default()
+            },
+            true,
+            AccountId::new([0; 32]),
+        );
+
+        let large_data: Vec<u8> = vec![0; nssa_core::account::data::DATA_MAX_LENGTH_IN_BYTES + 1];
+
+        let result = execute_and_prove(
+            &[public_account],
+            &Program::serialize_instruction(large_data).unwrap(),
+            &[0],
+            &[],
+            &[],
+            &[],
+            &program,
+        );
+
+        assert!(matches!(result, Err(NssaError::ProgramProveFailed(_))));
+    }
+
     #[test]
     fn test_extra_output_program_should_fail_in_privacy_preserving_circuit() {
         let program = Program::extra_output_program();
@@ -1677,7 +1721,7 @@ pub mod tests {
         let private_account_2 = AccountWithMetadata::new(
             Account {
                 // Non default data
-                data: b"hola mundo".to_vec(),
+                data: b"hola mundo".to_vec().try_into().unwrap(),
                 ..Account::default()
             },
             false,
@@ -1966,7 +2010,7 @@ pub mod tests {
             program_owner: Program::authenticated_transfer_program().id(),
             balance: 100,
             nonce: 0xdeadbeef,
-            data: vec![],
+            data: Data::default(),
         };
         let recipient_keys = test_private_account_keys_2();
 
@@ -1992,7 +2036,7 @@ pub mod tests {
             program_owner: Program::authenticated_transfer_program().id(),
             balance: 100 - balance_to_move,
             nonce: 0xcafecafe,
-            data: vec![],
+            data: Data::default(),
         };
 
         let tx = private_balance_transfer_for_tests(
@@ -2092,14 +2136,18 @@ pub mod tests {
         let key = PrivateKey::try_new([1; 32]).unwrap();
         let from = AccountId::from(&PublicKey::new_from_private_key(&key));
         let to = AccountId::new([2; 32]);
-        let initial_balance = 100;
+        let initial_balance = 1000;
         let initial_data = [(from, initial_balance), (to, 0)];
         let mut state =
             V02State::new_with_genesis_accounts(&initial_data, &[]).with_test_programs();
         let from_key = key;
-        let amount: u128 = 0;
-        let instruction: (u128, ProgramId, u32) =
-            (amount, Program::authenticated_transfer_program().id(), 2);
+        let amount: u128 = 37;
+        let instruction: (u128, ProgramId, u32, Option<PdaSeed>) = (
+            amount,
+            Program::authenticated_transfer_program().id(),
+            2,
+            None,
+        );
 
         let expected_to_post = Account {
             program_owner: Program::authenticated_transfer_program().id(),
@@ -2139,10 +2187,11 @@ pub mod tests {
             V02State::new_with_genesis_accounts(&initial_data, &[]).with_test_programs();
         let from_key = key;
         let amount: u128 = 0;
-        let instruction: (u128, ProgramId, u32) = (
+        let instruction: (u128, ProgramId, u32, Option<PdaSeed>) = (
             amount,
             Program::authenticated_transfer_program().id(),
             MAX_NUMBER_CHAINED_CALLS as u32 + 1,
+            None,
         );
 
         let message = public_transaction::Message::try_new(
@@ -2162,4 +2211,274 @@ pub mod tests {
             Err(NssaError::MaxChainedCallsDepthExceeded)
         ));
     }
+
+    #[test]
+    fn test_execution_that_requires_authentication_of_a_program_derived_account_id_succeeds() {
+        let chain_caller = Program::chain_caller();
+        let pda_seed = PdaSeed::new([37; 32]);
+        let from = AccountId::from((&chain_caller.id(), &pda_seed));
+        let to = AccountId::new([2; 32]);
+        let initial_balance = 1000;
+        let initial_data = [(from, initial_balance), (to, 0)];
+        let mut state =
+            V02State::new_with_genesis_accounts(&initial_data, &[]).with_test_programs();
+        let amount: u128 = 58;
+        let instruction: (u128, ProgramId, u32, Option<PdaSeed>) = (
+            amount,
+            Program::authenticated_transfer_program().id(),
+            1,
+            Some(pda_seed),
+        );
+
+        let expected_to_post = Account {
+            program_owner: Program::authenticated_transfer_program().id(),
+            balance: amount, // The `chain_caller` chains the program twice
+            ..Account::default()
+        };
+        let message = public_transaction::Message::try_new(
+            chain_caller.id(),
+            vec![to, from], // The chain_caller program permutes the account order in the chain
+            // call
+            vec![],
+            instruction,
+        )
+        .unwrap();
+        let witness_set = public_transaction::WitnessSet::for_message(&message, &[]);
+        let tx = PublicTransaction::new(message, witness_set);
+
+        state.transition_from_public_transaction(&tx).unwrap();
+
+        let from_post = state.get_account_by_id(&from);
+        let to_post = state.get_account_by_id(&to);
+        assert_eq!(from_post.balance, initial_balance - amount);
+        assert_eq!(to_post, expected_to_post);
+    }
+
+    #[test]
+    fn test_claiming_mechanism_within_chain_call() {
+        // This test calls the authenticated transfer program through the chain_caller program.
+        // The transfer is made from an initialized sender to an uninitialized recipient. And
+        // it is expected that the recipient account is claimed by the authenticated transfer
+        // program and not the chained_caller program.
+        let chain_caller = Program::chain_caller();
+        let auth_transfer = Program::authenticated_transfer_program();
+        let key = PrivateKey::try_new([1; 32]).unwrap();
+        let account_id = AccountId::from(&PublicKey::new_from_private_key(&key));
+        let initial_balance = 100;
+        let initial_data = [(account_id, initial_balance)];
+        let mut state =
+            V02State::new_with_genesis_accounts(&initial_data, &[]).with_test_programs();
+        let from = account_id;
+        let from_key = key;
+        let to = AccountId::new([2; 32]);
+        let amount: u128 = 37;
+
+        // Check the recipient is an uninitialized account
+        assert_eq!(state.get_account_by_id(&to), Account::default());
+
+        let expected_to_post = Account {
+            // The expected program owner is the authenticated transfer program
+            program_owner: auth_transfer.id(),
+            balance: amount,
+            ..Account::default()
+        };
+
+        // The transaction executes the chain_caller program, which internally calls the
+        // authenticated_transfer program
+        let instruction: (u128, ProgramId, u32, Option<PdaSeed>) = (
+            amount,
+            Program::authenticated_transfer_program().id(),
+            1,
+            None,
+        );
+        let message = public_transaction::Message::try_new(
+            chain_caller.id(),
+            vec![to, from], // The chain_caller program permutes the account order in the chain
+            // call
+            vec![0],
+            instruction,
+        )
+        .unwrap();
+        let witness_set = public_transaction::WitnessSet::for_message(&message, &[&from_key]);
+        let tx = PublicTransaction::new(message, witness_set);
+
+        state.transition_from_public_transaction(&tx).unwrap();
+
+        let from_post = state.get_account_by_id(&from);
+        let to_post = state.get_account_by_id(&to);
+        assert_eq!(from_post.balance, initial_balance - amount);
+        assert_eq!(to_post, expected_to_post);
+    }
+
+    #[test]
+    fn test_pda_mechanism_with_pinata_token_program() {
+        let pinata_token = Program::pinata_token();
+        let token = Program::token();
+
+        let pinata_definition_id = AccountId::new([1; 32]);
+        let pinata_token_definition_id = AccountId::new([2; 32]);
+        // Total supply of pinata token will be in an account under a PDA.
+        let pinata_token_holding_id = AccountId::from((&pinata_token.id(), &PdaSeed::new([0; 32])));
+        let winner_token_holding_id = AccountId::new([3; 32]);
+
+        let mut expected_winner_account_data = [0; 49];
+        expected_winner_account_data[0] = 1;
+        expected_winner_account_data[1..33].copy_from_slice(pinata_token_definition_id.value());
+        expected_winner_account_data[33..].copy_from_slice(&150u128.to_le_bytes());
+        let expected_winner_token_holding_post = Account {
+            program_owner: token.id(),
+            data: expected_winner_account_data.to_vec().try_into().unwrap(),
+            ..Account::default()
+        };
+
+        let mut state = V02State::new_with_genesis_accounts(&[], &[]);
+        state.add_pinata_token_program(pinata_definition_id);
+
+        // Execution of the token program to create new token for the pinata token
+        // definition and supply accounts
+        let total_supply: u128 = 10_000_000;
+        // instruction: [0x00 || total_supply (little-endian 16 bytes) || name (6 bytes)]
+        let mut instruction: [u8; 23] = [0; 23];
+        instruction[1..17].copy_from_slice(&total_supply.to_le_bytes());
+        instruction[17..].copy_from_slice(b"PINATA");
+        let message = public_transaction::Message::try_new(
+            token.id(),
+            vec![pinata_token_definition_id, pinata_token_holding_id],
+            vec![],
+            instruction,
+        )
+        .unwrap();
+        let witness_set = public_transaction::WitnessSet::for_message(&message, &[]);
+        let tx = PublicTransaction::new(message, witness_set);
+        state.transition_from_public_transaction(&tx).unwrap();
+
+        // Execution of the token program transfer just to initialize the winner token account
+        let mut instruction: [u8; 23] = [0; 23];
+        instruction[0] = 2;
+        let message = public_transaction::Message::try_new(
+            token.id(),
+            vec![pinata_token_definition_id, winner_token_holding_id],
+            vec![],
+            instruction,
+        )
+        .unwrap();
+        let witness_set = public_transaction::WitnessSet::for_message(&message, &[]);
+        let tx = PublicTransaction::new(message, witness_set);
+        state.transition_from_public_transaction(&tx).unwrap();
+
+        // Submit a solution to the pinata program to claim the prize
+        let solution: u128 = 989106;
+        let message = public_transaction::Message::try_new(
+            pinata_token.id(),
+            vec![
+                pinata_definition_id,
+                pinata_token_holding_id,
+                winner_token_holding_id,
+            ],
+            vec![],
+            solution,
+        )
+        .unwrap();
+        let witness_set = public_transaction::WitnessSet::for_message(&message, &[]);
+        let tx = PublicTransaction::new(message, witness_set);
+        state.transition_from_public_transaction(&tx).unwrap();
+
+        let winner_token_holding_post = state.get_account_by_id(&winner_token_holding_id);
+        assert_eq!(
+            winner_token_holding_post,
+            expected_winner_token_holding_post
+        );
+    }
+
+    #[test]
+    fn test_claiming_mechanism_cannot_claim_initialied_accounts() {
+        let claimer = Program::claimer();
+        let mut state = V02State::new_with_genesis_accounts(&[], &[]).with_test_programs();
+        let account_id = AccountId::new([2; 32]);
+
+        // Insert an account with non-default program owner
+        state.force_insert_account(
+            account_id,
+            Account {
+                program_owner: [1, 2, 3, 4, 5, 6, 7, 8],
+                ..Account::default()
+            },
+        );
+
+        let message =
+            public_transaction::Message::try_new(claimer.id(), vec![account_id], vec![], ())
+                .unwrap();
+        let witness_set = public_transaction::WitnessSet::for_message(&message, &[]);
+        let tx = PublicTransaction::new(message, witness_set);
+
+        let result = state.transition_from_public_transaction(&tx);
+
+        assert!(matches!(result, Err(NssaError::InvalidProgramBehavior)))
+    }
+
+    /// This test ensures that even if a malicious program tries to perform overflow of balances
+    /// it will not be able to break the balance validation.
+    #[test]
+    fn test_malicious_program_cannot_break_balance_validation() {
+        let sender_key = PrivateKey::try_new([37; 32]).unwrap();
+        let sender_id = AccountId::from(&PublicKey::new_from_private_key(&sender_key));
+        let sender_init_balance: u128 = 10;
+
+        let recipient_key = PrivateKey::try_new([42; 32]).unwrap();
+        let recipient_id = AccountId::from(&PublicKey::new_from_private_key(&recipient_key));
+        let recipient_init_balance: u128 = 10;
+
+        let mut state = V02State::new_with_genesis_accounts(
+            &[
+                (sender_id, sender_init_balance),
+                (recipient_id, recipient_init_balance),
+            ],
+            &[],
+        );
+
+        state.insert_program(Program::modified_transfer_program());
+
+        let balance_to_move: u128 = 4;
+
+        let sender =
+            AccountWithMetadata::new(state.get_account_by_id(&sender_id.clone()), true, sender_id);
+
+        let sender_nonce = sender.account.nonce;
+
+        let _recipient =
+            AccountWithMetadata::new(state.get_account_by_id(&recipient_id), false, sender_id);
+
+        let message = public_transaction::Message::try_new(
+            Program::modified_transfer_program().id(),
+            vec![sender_id, recipient_id],
+            vec![sender_nonce],
+            balance_to_move,
+        )
+        .unwrap();
+
+        let witness_set = public_transaction::WitnessSet::for_message(&message, &[&sender_key]);
+        let tx = PublicTransaction::new(message, witness_set);
+        let res = state.transition_from_public_transaction(&tx);
+        assert!(matches!(res, Err(NssaError::InvalidProgramBehavior)));
+
+        let sender_post = state.get_account_by_id(&sender_id);
+        let recipient_post = state.get_account_by_id(&recipient_id);
+
+        let expected_sender_post = {
+            let mut this = state.get_account_by_id(&sender_id);
+            this.balance = sender_init_balance;
+            this.nonce = 0;
+            this
+        };
+
+        let expected_recipient_post = {
+            let mut this = state.get_account_by_id(&sender_id);
+            this.balance = recipient_init_balance;
+            this.nonce = 0;
+            this
+        };
+
+        assert!(expected_sender_post == sender_post);
+        assert!(expected_recipient_post == recipient_post);
+    }
 }
diff --git a/nssa/test_program_methods/guest/Cargo.lock b/nssa/test_program_methods/guest/Cargo.lock
index 85f566c..b2337cc 100644
--- a/nssa/test_program_methods/guest/Cargo.lock
+++ b/nssa/test_program_methods/guest/Cargo.lock
@@ -1583,6 +1583,7 @@ dependencies = [
  "chacha20",
  "risc0-zkvm",
  "serde",
+ "thiserror",
 ]
 
 [[package]]
diff --git a/nssa/test_program_methods/guest/src/bin/burner.rs b/nssa/test_program_methods/guest/src/bin/burner.rs
index 1ef7373..01b46b2 100644
--- a/nssa/test_program_methods/guest/src/bin/burner.rs
+++ b/nssa/test_program_methods/guest/src/bin/burner.rs
@@ -1,4 +1,4 @@
-use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, ProgramInput};
+use nssa_core::program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs};
 
 type Instruction = u128;
 
@@ -17,5 +17,5 @@ fn main() {
     let mut account_post = account_pre.clone();
     account_post.balance -= balance_to_burn;
 
-    write_nssa_outputs(vec![pre], vec![account_post]);
+    write_nssa_outputs(vec![pre], vec![AccountPostState::new(account_post)]);
 }
diff --git a/nssa/test_program_methods/guest/src/bin/chain_caller.rs b/nssa/test_program_methods/guest/src/bin/chain_caller.rs
index 028f8a0..ee01ffa 100644
--- a/nssa/test_program_methods/guest/src/bin/chain_caller.rs
+++ b/nssa/test_program_methods/guest/src/bin/chain_caller.rs
@@ -1,43 +1,54 @@
 use nssa_core::program::{
-    ChainedCall, ProgramId, ProgramInput, read_nssa_inputs, write_nssa_outputs_with_chained_call,
+    AccountPostState, ChainedCall, PdaSeed, ProgramId, ProgramInput, read_nssa_inputs,
+    write_nssa_outputs_with_chained_call,
 };
 use risc0_zkvm::serde::to_vec;
 
-type Instruction = (u128, ProgramId, u32);
+type Instruction = (u128, ProgramId, u32, Option<PdaSeed>);
 
 /// A program that calls another program `num_chain_calls` times.
 /// It permutes the order of the input accounts on the subsequent call
+/// The `ProgramId` in the instruction must be the program_id of the authenticated transfers program
 fn main() {
     let ProgramInput {
         pre_states,
-        instruction: (balance, program_id, num_chain_calls),
+        instruction: (balance, auth_transfer_id, num_chain_calls, pda_seed),
     } = read_nssa_inputs::<Instruction>();
 
-    let [sender_pre, receiver_pre] = match pre_states.try_into() {
+    let [recipient_pre, sender_pre] = match pre_states.try_into() {
         Ok(array) => array,
         Err(_) => return,
     };
 
     let instruction_data = to_vec(&balance).unwrap();
 
-    let mut chained_call = vec![
-        ChainedCall {
-            program_id,
-            instruction_data: instruction_data.clone(),
-            pre_states: vec![receiver_pre.clone(), sender_pre.clone()], // <- Account order permutation here
-        };
-        num_chain_calls as usize - 1
-    ];
+    let mut running_recipient_pre = recipient_pre.clone();
+    let mut running_sender_pre = sender_pre.clone();
 
-    chained_call.push(ChainedCall {
-        program_id,
-        instruction_data,
-        pre_states: vec![receiver_pre.clone(), sender_pre.clone()], // <- Account order permutation here
-    });
+    if pda_seed.is_some() {
+        running_sender_pre.is_authorized = true;
+    }
+
+    let mut chained_calls = Vec::new();
+    for _i in 0..num_chain_calls {
+        let new_chained_call = ChainedCall {
+            program_id: auth_transfer_id,
+            instruction_data: instruction_data.clone(),
+            pre_states: vec![running_sender_pre.clone(), running_recipient_pre.clone()], // <- Account order permutation here
+            pda_seeds: pda_seed.iter().cloned().collect(),
+        };
+        chained_calls.push(new_chained_call);
+
+        running_sender_pre.account.balance -= balance;
+        running_recipient_pre.account.balance += balance;
+    }
 
     write_nssa_outputs_with_chained_call(
-        vec![sender_pre.clone(), receiver_pre.clone()],
-        vec![sender_pre.account, receiver_pre.account],
-        chained_call,
+        vec![sender_pre.clone(), recipient_pre.clone()],
+        vec![
+            AccountPostState::new(sender_pre.account),
+            AccountPostState::new(recipient_pre.account),
+        ],
+        chained_calls,
     );
 }
diff --git a/nssa/test_program_methods/guest/src/bin/claimer.rs b/nssa/test_program_methods/guest/src/bin/claimer.rs
new file mode 100644
index 0000000..7687e5a
--- /dev/null
+++ b/nssa/test_program_methods/guest/src/bin/claimer.rs
@@ -0,0 +1,19 @@
+use nssa_core::program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs};
+
+type Instruction = ();
+
+fn main() {
+    let ProgramInput {
+        pre_states,
+        instruction: _,
+    } = read_nssa_inputs::<Instruction>();
+
+    let [pre] = match pre_states.try_into() {
+        Ok(array) => array,
+        Err(_) => return,
+    };
+
+    let account_post = AccountPostState::new_claimed(pre.account.clone());
+
+    write_nssa_outputs(vec![pre], vec![account_post]);
+}
diff --git a/nssa/test_program_methods/guest/src/bin/data_changer.rs b/nssa/test_program_methods/guest/src/bin/data_changer.rs
index c7d34a2..b590886 100644
--- a/nssa/test_program_methods/guest/src/bin/data_changer.rs
+++ b/nssa/test_program_methods/guest/src/bin/data_changer.rs
@@ -1,9 +1,10 @@
-use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, ProgramInput};
+use nssa_core::program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs};
 
-type Instruction = ();
+type Instruction = Vec<u8>;
 
+/// A program that modifies the account data by setting bytes sent in instruction.
 fn main() {
-    let ProgramInput { pre_states, .. } = read_nssa_inputs::<Instruction>();
+    let ProgramInput { pre_states, instruction: data } = read_nssa_inputs::<Instruction>();
 
     let [pre] = match pre_states.try_into() {
         Ok(array) => array,
@@ -12,7 +13,7 @@ fn main() {
 
     let account_pre = &pre.account;
     let mut account_post = account_pre.clone();
-    account_post.data.push(0);
+    account_post.data = data.try_into().expect("provided data should fit into data limit");
 
-    write_nssa_outputs(vec![pre], vec![account_post]);
+    write_nssa_outputs(vec![pre], vec![AccountPostState::new_claimed(account_post)]);
 }
diff --git a/nssa/test_program_methods/guest/src/bin/extra_output.rs b/nssa/test_program_methods/guest/src/bin/extra_output.rs
index 3543d51..7137262 100644
--- a/nssa/test_program_methods/guest/src/bin/extra_output.rs
+++ b/nssa/test_program_methods/guest/src/bin/extra_output.rs
@@ -1,6 +1,6 @@
 use nssa_core::{
     account::Account,
-    program::{read_nssa_inputs, write_nssa_outputs, ProgramInput},
+    program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs},
 };
 
 type Instruction = ();
@@ -15,5 +15,11 @@ fn main() {
 
     let account_pre = pre.account.clone();
 
-    write_nssa_outputs(vec![pre], vec![account_pre, Account::default()]);
+    write_nssa_outputs(
+        vec![pre],
+        vec![
+            AccountPostState::new(account_pre),
+            AccountPostState::new(Account::default()),
+        ],
+    );
 }
diff --git a/nssa/test_program_methods/guest/src/bin/minter.rs b/nssa/test_program_methods/guest/src/bin/minter.rs
index 2ec97a9..5f69772 100644
--- a/nssa/test_program_methods/guest/src/bin/minter.rs
+++ b/nssa/test_program_methods/guest/src/bin/minter.rs
@@ -1,4 +1,4 @@
-use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, ProgramInput};
+use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, AccountPostState, ProgramInput};
 
 type Instruction = ();
 
@@ -14,5 +14,5 @@ fn main() {
     let mut account_post = account_pre.clone();
     account_post.balance += 1;
 
-    write_nssa_outputs(vec![pre], vec![account_post]);
+    write_nssa_outputs(vec![pre], vec![AccountPostState::new(account_post)]);
 }
diff --git a/nssa/test_program_methods/guest/src/bin/missing_output.rs b/nssa/test_program_methods/guest/src/bin/missing_output.rs
index 7b6016c..f7d78be 100644
--- a/nssa/test_program_methods/guest/src/bin/missing_output.rs
+++ b/nssa/test_program_methods/guest/src/bin/missing_output.rs
@@ -1,4 +1,4 @@
-use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, ProgramInput};
+use nssa_core::program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs};
 
 type Instruction = ();
 
@@ -12,5 +12,5 @@ fn main() {
 
     let account_pre1 = pre1.account.clone();
 
-    write_nssa_outputs(vec![pre1, pre2], vec![account_pre1]);
+    write_nssa_outputs(vec![pre1, pre2], vec![AccountPostState::new(account_pre1)]);
 }
diff --git a/nssa/test_program_methods/guest/src/bin/nonce_changer.rs b/nssa/test_program_methods/guest/src/bin/nonce_changer.rs
index b3b2599..fc24572 100644
--- a/nssa/test_program_methods/guest/src/bin/nonce_changer.rs
+++ b/nssa/test_program_methods/guest/src/bin/nonce_changer.rs
@@ -1,4 +1,4 @@
-use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, ProgramInput};
+use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, AccountPostState, ProgramInput};
 
 type Instruction = ();
 
@@ -14,5 +14,5 @@ fn main() {
     let mut account_post = account_pre.clone();
     account_post.nonce += 1;
 
-    write_nssa_outputs(vec![pre], vec![account_post]);
+    write_nssa_outputs(vec![pre], vec![AccountPostState::new(account_post)]);
 }
diff --git a/nssa/test_program_methods/guest/src/bin/program_owner_changer.rs b/nssa/test_program_methods/guest/src/bin/program_owner_changer.rs
index 49947cd..2fa5400 100644
--- a/nssa/test_program_methods/guest/src/bin/program_owner_changer.rs
+++ b/nssa/test_program_methods/guest/src/bin/program_owner_changer.rs
@@ -1,4 +1,4 @@
-use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, ProgramInput};
+use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, AccountPostState, ProgramInput};
 
 type Instruction = ();
 
@@ -14,5 +14,5 @@ fn main() {
     let mut account_post = account_pre.clone();
     account_post.program_owner = [0, 1, 2, 3, 4, 5, 6, 7];
 
-    write_nssa_outputs(vec![pre], vec![account_post]);
+    write_nssa_outputs(vec![pre], vec![AccountPostState::new(account_post)]);
 }
diff --git a/nssa/test_program_methods/guest/src/bin/simple_balance_transfer.rs b/nssa/test_program_methods/guest/src/bin/simple_balance_transfer.rs
index 13263c5..be56e16 100644
--- a/nssa/test_program_methods/guest/src/bin/simple_balance_transfer.rs
+++ b/nssa/test_program_methods/guest/src/bin/simple_balance_transfer.rs
@@ -1,4 +1,4 @@
-use nssa_core::program::{read_nssa_inputs, write_nssa_outputs, ProgramInput};
+use nssa_core::program::{AccountPostState, ProgramInput, read_nssa_inputs, write_nssa_outputs};
 
 type Instruction = u128;
 
@@ -20,6 +20,9 @@ fn main() {
 
     write_nssa_outputs(
         vec![sender_pre, receiver_pre],
-        vec![sender_post, receiver_post],
+        vec![
+            AccountPostState::new(sender_post),
+            AccountPostState::new(receiver_post),
+        ],
     );
 }
diff --git a/wallet/src/chain_storage.rs b/wallet/src/chain_storage.rs
index 0625fce..1223d1f 100644
--- a/wallet/src/chain_storage.rs
+++ b/wallet/src/chain_storage.rs
@@ -263,6 +263,7 @@ mod tests {
             seq_poll_max_retries: 10,
             seq_block_poll_max_amount: 100,
             initial_accounts: create_initial_accounts(),
+            basic_auth: None,
         }
     }
 
diff --git a/wallet/src/cli/account.rs b/wallet/src/cli/account.rs
index 3625b15..2f5ef04 100644
--- a/wallet/src/cli/account.rs
+++ b/wallet/src/cli/account.rs
@@ -176,7 +176,12 @@ impl From<TokenDefinition> for TokedDefinitionAccountView {
     fn from(value: TokenDefinition) -> Self {
         Self {
             account_type: "Token definition".to_string(),
-            name: hex::encode(value.name),
+            name: {
+                // Assuming, that name does not have UTF-8 NULL and all zeroes are padding.
+                let name_trimmed: Vec<_> =
+                    value.name.into_iter().take_while(|ch| *ch != 0).collect();
+                String::from_utf8(name_trimmed).unwrap_or(hex::encode(value.name))
+            },
             total_supply: value.total_supply,
         }
     }
@@ -334,3 +339,47 @@ impl WalletSubcommand for AccountSubcommand {
         }
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use crate::cli::account::{TokedDefinitionAccountView, TokenDefinition};
+
+    #[test]
+    fn test_invalid_utf_8_name_of_token() {
+        let token_def = TokenDefinition {
+            account_type: 1,
+            name: [137, 12, 14, 3, 5, 4],
+            total_supply: 100,
+        };
+
+        let token_def_view: TokedDefinitionAccountView = token_def.into();
+
+        assert_eq!(token_def_view.name, "890c0e030504");
+    }
+
+    #[test]
+    fn test_valid_utf_8_name_of_token_all_bytes() {
+        let token_def = TokenDefinition {
+            account_type: 1,
+            name: [240, 159, 146, 150, 66, 66],
+            total_supply: 100,
+        };
+
+        let token_def_view: TokedDefinitionAccountView = token_def.into();
+
+        assert_eq!(token_def_view.name, "💖BB");
+    }
+
+    #[test]
+    fn test_valid_utf_8_name_of_token_less_bytes() {
+        let token_def = TokenDefinition {
+            account_type: 1,
+            name: [78, 65, 77, 69, 0, 0],
+            total_supply: 100,
+        };
+
+        let token_def_view: TokedDefinitionAccountView = token_def.into();
+
+        assert_eq!(token_def_view.name, "NAME");
+    }
+}
diff --git a/wallet/src/cli/config.rs b/wallet/src/cli/config.rs
index df0413e..d4b3f5a 100644
--- a/wallet/src/cli/config.rs
+++ b/wallet/src/cli/config.rs
@@ -73,6 +73,13 @@ impl WalletSubcommand for ConfigSubcommand {
                 "initial_accounts" => {
                     println!("{:#?}", wallet_core.storage.wallet_config.initial_accounts);
                 }
+                "basic_auth" => {
+                    if let Some(basic_auth) = &wallet_core.storage.wallet_config.basic_auth {
+                        println!("{basic_auth}");
+                    } else {
+                        println!("Not set");
+                    }
+                }
                 _ => {
                     println!("Unknown field");
                 }
@@ -99,6 +106,9 @@ impl WalletSubcommand for ConfigSubcommand {
                         wallet_core.storage.wallet_config.seq_block_poll_max_amount =
                             value.parse()?;
                     }
+                    "basic_auth" => {
+                        wallet_core.storage.wallet_config.basic_auth = Some(value.parse()?);
+                    }
                     "initial_accounts" => {
                         anyhow::bail!("Setting this field from wallet is not supported");
                     }
@@ -141,6 +151,9 @@ impl WalletSubcommand for ConfigSubcommand {
                 "initial_accounts" => {
                     println!("List of initial accounts' keys(both public and private)");
                 }
+                "basic_auth" => {
+                    println!("Basic authentication credentials for sequencer HTTP requests");
+                }
                 _ => {
                     println!("Unknown field");
                 }
diff --git a/wallet/src/cli/mod.rs b/wallet/src/cli/mod.rs
index e53849e..86d8210 100644
--- a/wallet/src/cli/mod.rs
+++ b/wallet/src/cli/mod.rs
@@ -13,7 +13,7 @@ use crate::{
             token::TokenProgramAgnosticSubcommand,
         },
     },
-    helperfunctions::fetch_config,
+    helperfunctions::{fetch_config, merge_auth_config},
 };
 
 pub mod account;
@@ -76,7 +76,7 @@ pub enum OverCommand {
 
 /// To execute commands, env var NSSA_WALLET_HOME_DIR must be set into directory with config
 ///
-/// All account adresses must be valid 32 byte base58 strings.
+/// All account addresses must be valid 32 byte base58 strings.
 ///
 /// All account account_ids must be provided as {privacy_prefix}/{account_id},
 /// where valid options for `privacy_prefix` is `Public` and `Private`
@@ -86,6 +86,9 @@ pub struct Args {
     /// Continious run flag
     #[arg(short, long)]
     pub continuous_run: bool,
+    /// Basic authentication in the format `user` or `user:password`
+    #[arg(long)]
+    pub auth: Option<String>,
     /// Wallet command
     #[command(subcommand)]
     pub command: Option<OverCommand>,
@@ -101,7 +104,15 @@ pub enum SubcommandReturnValue {
 }
 
 pub async fn execute_subcommand(command: Command) -> Result<SubcommandReturnValue> {
+    execute_subcommand_with_auth(command, None).await
+}
+
+pub async fn execute_subcommand_with_auth(
+    command: Command,
+    auth: Option<String>,
+) -> Result<SubcommandReturnValue> {
     let wallet_config = fetch_config().await?;
+    let wallet_config = merge_auth_config(wallet_config, auth)?;
     let mut wallet_core = WalletCore::start_from_config_update_chain(wallet_config).await?;
 
     let subcommand_ret = match command {
@@ -167,7 +178,11 @@ pub async fn execute_subcommand(command: Command) -> Result<SubcommandReturnValu
 }
 
 pub async fn execute_continuous_run() -> Result<()> {
+    execute_continuous_run_with_auth(None).await
+}
+pub async fn execute_continuous_run_with_auth(auth: Option<String>) -> Result<()> {
     let config = fetch_config().await?;
+    let config = merge_auth_config(config, auth)?;
     let mut wallet_core = WalletCore::start_from_config_update_chain(config.clone()).await?;
 
     loop {
@@ -186,7 +201,12 @@ pub async fn execute_continuous_run() -> Result<()> {
 }
 
 pub async fn execute_setup(password: String) -> Result<()> {
+    execute_setup_with_auth(password, None).await
+}
+
+pub async fn execute_setup_with_auth(password: String, auth: Option<String>) -> Result<()> {
     let config = fetch_config().await?;
+    let config = merge_auth_config(config, auth)?;
     let wallet_core = WalletCore::start_from_config_new_storage(config.clone(), password).await?;
 
     wallet_core.store_persistent_data().await?;
@@ -195,7 +215,16 @@ pub async fn execute_setup(password: String) -> Result<()> {
 }
 
 pub async fn execute_keys_restoration(password: String, depth: u32) -> Result<()> {
+    execute_keys_restoration_with_auth(password, depth, None).await
+}
+
+pub async fn execute_keys_restoration_with_auth(
+    password: String,
+    depth: u32,
+    auth: Option<String>,
+) -> Result<()> {
     let config = fetch_config().await?;
+    let config = merge_auth_config(config, auth)?;
     let mut wallet_core =
         WalletCore::start_from_config_new_storage(config.clone(), password.clone()).await?;
 
diff --git a/wallet/src/cli/programs/pinata.rs b/wallet/src/cli/programs/pinata.rs
index c0e2223..7712a7c 100644
--- a/wallet/src/cli/programs/pinata.rs
+++ b/wallet/src/cli/programs/pinata.rs
@@ -197,6 +197,7 @@ async fn find_solution(wallet: &WalletCore, pinata_account_id: nssa::AccountId)
     let account = wallet.get_account_public(pinata_account_id).await?;
     let data: [u8; 33] = account
         .data
+        .as_ref()
         .try_into()
         .map_err(|_| anyhow::Error::msg("invalid pinata account data"))?;
 
diff --git a/wallet/src/config.rs b/wallet/src/config.rs
index ebcf283..c06ccc4 100644
--- a/wallet/src/config.rs
+++ b/wallet/src/config.rs
@@ -1,3 +1,5 @@
+use std::str::FromStr;
+
 use key_protocol::key_management::{
     KeyChain,
     key_tree::{
@@ -6,6 +8,49 @@ use key_protocol::key_management::{
 };
 use serde::{Deserialize, Serialize};
 
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct BasicAuth {
+    pub username: String,
+    pub password: Option<String>,
+}
+
+impl std::fmt::Display for BasicAuth {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        write!(f, "{}", self.username)?;
+        if let Some(password) = &self.password {
+            write!(f, ":{password}")?;
+        }
+
+        Ok(())
+    }
+}
+
+impl FromStr for BasicAuth {
+    type Err = anyhow::Error;
+
+    fn from_str(s: &str) -> Result<Self, Self::Err> {
+        let parse = || {
+            let mut parts = s.splitn(2, ':');
+            let username = parts.next()?;
+            let password = parts.next().filter(|p| !p.is_empty());
+            if parts.next().is_some() {
+                return None;
+            }
+
+            Some((username, password))
+        };
+
+        let (username, password) = parse().ok_or_else(|| {
+            anyhow::anyhow!("Invalid auth format. Expected 'user' or 'user:password'")
+        })?;
+
+        Ok(Self {
+            username: username.to_string(),
+            password: password.map(|p| p.to_string()),
+        })
+    }
+}
+
 #[derive(Debug, Clone, Serialize, Deserialize)]
 pub struct InitialAccountDataPublic {
     pub account_id: String,
@@ -143,6 +188,8 @@ pub struct WalletConfig {
     pub seq_block_poll_max_amount: u64,
     /// Initial accounts for wallet
     pub initial_accounts: Vec<InitialAccountData>,
+    /// Basic authentication credentials
+    pub basic_auth: Option<BasicAuth>,
 }
 
 impl Default for WalletConfig {
@@ -154,6 +201,7 @@ impl Default for WalletConfig {
             seq_tx_poll_max_blocks: 5,
             seq_poll_max_retries: 5,
             seq_block_poll_max_amount: 100,
+            basic_auth: None,
             initial_accounts: {
                 let init_acc_json = r#"
                 [
diff --git a/wallet/src/helperfunctions.rs b/wallet/src/helperfunctions.rs
index 770d2bb..5f1dcf7 100644
--- a/wallet/src/helperfunctions.rs
+++ b/wallet/src/helperfunctions.rs
@@ -12,7 +12,7 @@ use tokio::io::{AsyncReadExt, AsyncWriteExt};
 use crate::{
     HOME_DIR_ENV_VAR,
     config::{
-        InitialAccountData, InitialAccountDataPrivate, InitialAccountDataPublic,
+        BasicAuth, InitialAccountData, InitialAccountDataPrivate, InitialAccountDataPublic,
         PersistentAccountDataPrivate, PersistentAccountDataPublic, PersistentStorage, WalletConfig,
     },
 };
@@ -89,6 +89,23 @@ pub async fn fetch_config() -> Result<WalletConfig> {
     Ok(config)
 }
 
+/// Parse CLI auth string and merge with config auth, prioritizing CLI
+pub fn merge_auth_config(
+    mut config: WalletConfig,
+    cli_auth: Option<String>,
+) -> Result<WalletConfig> {
+    if let Some(auth_str) = cli_auth {
+        let cli_auth_config: BasicAuth = auth_str.parse()?;
+
+        if config.basic_auth.is_some() {
+            println!("Warning: CLI auth argument takes precedence over config basic-auth");
+        }
+
+        config.basic_auth = Some(cli_auth_config);
+    }
+    Ok(config)
+}
+
 /// Fetch data stored at home
 ///
 /// File must be created through setup beforehand.
diff --git a/wallet/src/lib.rs b/wallet/src/lib.rs
index d0a9014..e68e6a4 100644
--- a/wallet/src/lib.rs
+++ b/wallet/src/lib.rs
@@ -47,7 +47,14 @@ pub struct WalletCore {
 
 impl WalletCore {
     pub async fn start_from_config_update_chain(config: WalletConfig) -> Result<Self> {
-        let client = Arc::new(SequencerClient::new(config.sequencer_addr.clone())?);
+        let basic_auth = config
+            .basic_auth
+            .as_ref()
+            .map(|auth| (auth.username.clone(), auth.password.clone()));
+        let client = Arc::new(SequencerClient::new_with_auth(
+            config.sequencer_addr.clone(),
+            basic_auth,
+        )?);
         let tx_poller = TxPoller::new(config.clone(), client.clone());
 
         let PersistentStorage {
@@ -69,7 +76,14 @@ impl WalletCore {
         config: WalletConfig,
         password: String,
     ) -> Result<Self> {
-        let client = Arc::new(SequencerClient::new(config.sequencer_addr.clone())?);
+        let basic_auth = config
+            .basic_auth
+            .as_ref()
+            .map(|auth| (auth.username.clone(), auth.password.clone()));
+        let client = Arc::new(SequencerClient::new_with_auth(
+            config.sequencer_addr.clone(),
+            basic_auth,
+        )?);
         let tx_poller = TxPoller::new(config.clone(), client.clone());
 
         let storage = WalletChainStore::new_storage(config, password)?;
diff --git a/wallet/src/main.rs b/wallet/src/main.rs
index 00aa6d0..1430b60 100644
--- a/wallet/src/main.rs
+++ b/wallet/src/main.rs
@@ -2,8 +2,8 @@ use anyhow::Result;
 use clap::{CommandFactory as _, Parser as _};
 use tokio::runtime::Builder;
 use wallet::cli::{
-    Args, OverCommand, execute_continuous_run, execute_keys_restoration, execute_setup,
-    execute_subcommand,
+    Args, OverCommand, execute_continuous_run_with_auth, execute_keys_restoration_with_auth,
+    execute_setup_with_auth, execute_subcommand_with_auth,
 };
 
 pub const NUM_THREADS: usize = 2;
@@ -13,7 +13,6 @@ pub const NUM_THREADS: usize = 2;
 // file path?
 // TODO #172: Why it requires config as env var while sequencer_runner accepts as
 // argument?
-// TODO #171: Running pinata doesn't give output about transaction hash and etc.
 fn main() -> Result<()> {
     let runtime = Builder::new_multi_thread()
         .worker_threads(NUM_THREADS)
@@ -29,16 +28,18 @@ fn main() -> Result<()> {
         if let Some(over_command) = args.command {
             match over_command {
                 OverCommand::Command(command) => {
-                    let _output = execute_subcommand(command).await?;
+                    let _output = execute_subcommand_with_auth(command, args.auth).await?;
                     Ok(())
                 }
                 OverCommand::RestoreKeys { password, depth } => {
-                    execute_keys_restoration(password, depth).await
+                    execute_keys_restoration_with_auth(password, depth, args.auth).await
+                }
+                OverCommand::Setup { password } => {
+                    execute_setup_with_auth(password, args.auth).await
                 }
-                OverCommand::Setup { password } => execute_setup(password).await,
             }
         } else if args.continuous_run {
-            execute_continuous_run().await
+            execute_continuous_run_with_auth(args.auth).await
         } else {
             let help = Args::command().render_long_help();
             println!("{help}");