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A shell account is a personal account that gives you access to a Unix shell on another machine. With a shell account you can log into a remote server and run commands on it. It's very useful when you want to try out another operating system.
It is worth noting that most free shell providers do not allow IRC bots or IRC Bouncers, for this functionality you will have to buy a shell from a commercial provider. These accounts usually cost from US$3/month and up.