diff --git a/pkg/core/native/blocked_accounts.go b/pkg/core/native/blocked_accounts.go
deleted file mode 100644
index fb27ce34f..000000000
--- a/pkg/core/native/blocked_accounts.go
+++ /dev/null
@@ -1,53 +0,0 @@
-package native
-
-import (
-	"github.com/nspcc-dev/neo-go/pkg/io"
-	"github.com/nspcc-dev/neo-go/pkg/util"
-	"github.com/nspcc-dev/neo-go/pkg/vm/stackitem"
-)
-
-// BlockedAccounts represents a slice of blocked accounts hashes.
-type BlockedAccounts []util.Uint160
-
-// Bytes returns serialized BlockedAccounts.
-func (ba *BlockedAccounts) Bytes() []byte {
-	w := io.NewBufBinWriter()
-	ba.EncodeBinary(w.BinWriter)
-	if w.Err != nil {
-		panic(w.Err)
-	}
-	return w.Bytes()
-}
-
-// EncodeBinary implements io.Serializable interface.
-func (ba *BlockedAccounts) EncodeBinary(w *io.BinWriter) {
-	w.WriteArray(*ba)
-}
-
-// BlockedAccountsFromBytes converts serialized BlockedAccounts to structure.
-func BlockedAccountsFromBytes(b []byte) (BlockedAccounts, error) {
-	ba := new(BlockedAccounts)
-	if len(b) == 0 {
-		return *ba, nil
-	}
-	r := io.NewBinReaderFromBuf(b)
-	ba.DecodeBinary(r)
-	if r.Err != nil {
-		return nil, r.Err
-	}
-	return *ba, nil
-}
-
-// DecodeBinary implements io.Serializable interface.
-func (ba *BlockedAccounts) DecodeBinary(r *io.BinReader) {
-	r.ReadArray(ba)
-}
-
-// ToStackItem converts BlockedAccounts to stackitem.Item
-func (ba *BlockedAccounts) ToStackItem() stackitem.Item {
-	result := make([]stackitem.Item, len(*ba))
-	for i, account := range *ba {
-		result[i] = stackitem.NewByteArray(account.BytesLE())
-	}
-	return stackitem.NewArray(result)
-}
diff --git a/pkg/core/native/blocked_accounts_test.go b/pkg/core/native/blocked_accounts_test.go
deleted file mode 100644
index 76709395e..000000000
--- a/pkg/core/native/blocked_accounts_test.go
+++ /dev/null
@@ -1,64 +0,0 @@
-package native
-
-import (
-	"encoding/json"
-	"testing"
-
-	"github.com/nspcc-dev/neo-go/pkg/internal/testserdes"
-	"github.com/nspcc-dev/neo-go/pkg/smartcontract"
-	"github.com/nspcc-dev/neo-go/pkg/util"
-	"github.com/nspcc-dev/neo-go/pkg/vm/stackitem"
-	"github.com/stretchr/testify/require"
-)
-
-func TestEncodeDecodeBinary(t *testing.T) {
-	expected := &BlockedAccounts{
-		util.Uint160{1, 2, 3},
-		util.Uint160{4, 5, 6},
-	}
-	actual := new(BlockedAccounts)
-	testserdes.EncodeDecodeBinary(t, expected, actual)
-
-	expected = &BlockedAccounts{}
-	actual = new(BlockedAccounts)
-	testserdes.EncodeDecodeBinary(t, expected, actual)
-}
-
-func TestBytesFromBytes(t *testing.T) {
-	expected := BlockedAccounts{
-		util.Uint160{1, 2, 3},
-		util.Uint160{4, 5, 6},
-	}
-	actual, err := BlockedAccountsFromBytes(expected.Bytes())
-	require.NoError(t, err)
-	require.Equal(t, expected, actual)
-
-	expected = BlockedAccounts{}
-	actual, err = BlockedAccountsFromBytes(expected.Bytes())
-	require.NoError(t, err)
-	require.Equal(t, expected, actual)
-}
-
-func TestToStackItem(t *testing.T) {
-	u1 := util.Uint160{1, 2, 3}
-	u2 := util.Uint160{4, 5, 6}
-	expected := BlockedAccounts{u1, u2}
-	actual := stackitem.NewArray([]stackitem.Item{
-		stackitem.NewByteArray(u1.BytesLE()),
-		stackitem.NewByteArray(u2.BytesLE()),
-	})
-	require.Equal(t, expected.ToStackItem(), actual)
-
-	expected = BlockedAccounts{}
-	actual = stackitem.NewArray([]stackitem.Item{})
-	require.Equal(t, expected.ToStackItem(), actual)
-}
-
-func TestMarshallJSON(t *testing.T) {
-	ba := &BlockedAccounts{}
-	p := smartcontract.ParameterFromStackItem(ba.ToStackItem(), make(map[stackitem.Item]bool))
-	actual, err := json.Marshal(p)
-	require.NoError(t, err)
-	expected := `{"type":"Array","value":[]}`
-	require.Equal(t, expected, string(actual))
-}
diff --git a/pkg/core/native/policy.go b/pkg/core/native/policy.go
index d0e8f7533..22a53cfbb 100644
--- a/pkg/core/native/policy.go
+++ b/pkg/core/native/policy.go
@@ -2,7 +2,6 @@ package native
 
 import (
 	"encoding/binary"
-	"errors"
 	"fmt"
 	"math/big"
 	"sort"
@@ -34,6 +33,9 @@ const (
 	minBlockSystemFee = 4007600
 	// maxFeePerByte is the maximum allowed fee per byte value.
 	maxFeePerByte = 100_000_000
+
+	// blockedAccountPrefix is a prefix used to store blocked account.
+	blockedAccountPrefix = 15
 )
 
 var (
@@ -43,8 +45,6 @@ var (
 	// feePerByteKey is a key used to store the minimum fee per byte for
 	// transaction.
 	feePerByteKey = []byte{10}
-	// blockedAccountsKey is a key used to store the list of blocked accounts.
-	blockedAccountsKey = []byte{15}
 	// maxBlockSizeKey is a key used to store the maximum block size value.
 	maxBlockSizeKey = []byte{12}
 	// maxBlockSystemFeeKey is a key used to store the maximum block system fee value.
@@ -64,7 +64,7 @@ type Policy struct {
 	feePerByte              int64
 	maxBlockSystemFee       int64
 	maxVerificationGas      int64
-	blockedAccounts         BlockedAccounts
+	blockedAccounts         []util.Uint160
 }
 
 var _ interop.Contract = (*Policy)(nil)
@@ -88,8 +88,9 @@ func newPolicy() *Policy {
 	md = newMethodAndPrice(p.getFeePerByte, 1000000, smartcontract.AllowStates)
 	p.AddMethod(md, desc, true)
 
-	desc = newDescriptor("getBlockedAccounts", smartcontract.ArrayType)
-	md = newMethodAndPrice(p.getBlockedAccounts, 1000000, smartcontract.AllowStates)
+	desc = newDescriptor("isBlocked", smartcontract.BoolType,
+		manifest.NewParameter("account", smartcontract.Hash160Type))
+	md = newMethodAndPrice(p.isBlocked, 1000000, smartcontract.AllowStates)
 	p.AddMethod(md, desc, true)
 
 	desc = newDescriptor("getMaxBlockSystemFee", smartcontract.IntegerType)
@@ -175,13 +176,6 @@ func (p *Policy) Initialize(ic *interop.Context) error {
 		return err
 	}
 
-	ba := new(BlockedAccounts)
-	si.Value = ba.Bytes()
-	err = ic.DAO.PutStorageItem(p.ContractID, blockedAccountsKey, si)
-	if err != nil {
-		return err
-	}
-
 	p.isValid = true
 	p.maxTransactionsPerBlock = defaultMaxTransactionsPerBlock
 	p.maxBlockSize = defaultMaxBlockSize
@@ -220,15 +214,21 @@ func (p *Policy) OnPersistEnd(dao dao.DAO) error {
 
 	p.maxVerificationGas = defaultMaxVerificationGas
 
-	si := dao.GetStorageItem(p.ContractID, blockedAccountsKey)
-	if si == nil {
-		return errors.New("BlockedAccounts uninitialized")
-	}
-	ba, err := BlockedAccountsFromBytes(si.Value)
+	p.blockedAccounts = make([]util.Uint160, 0)
+	siMap, err := dao.GetStorageItemsWithPrefix(p.ContractID, []byte{blockedAccountPrefix})
 	if err != nil {
-		return fmt.Errorf("failed to decode BlockedAccounts from bytes: %w", err)
+		return fmt.Errorf("failed to get blocked accounts from storage: %w", err)
 	}
-	p.blockedAccounts = ba
+	for key := range siMap {
+		hash, err := util.Uint160DecodeBytesBE([]byte(key))
+		if err != nil {
+			return fmt.Errorf("failed to decode blocked account hash: %w", err)
+		}
+		p.blockedAccounts = append(p.blockedAccounts, hash)
+	}
+	sort.Slice(p.blockedAccounts, func(i, j int) bool {
+		return p.blockedAccounts[i].Less(p.blockedAccounts[j])
+	})
 
 	p.isValid = true
 	return nil
@@ -306,32 +306,28 @@ func (p *Policy) GetMaxBlockSystemFeeInternal(dao dao.DAO) int64 {
 	return p.getInt64WithKey(dao, maxBlockSystemFeeKey)
 }
 
-// getBlockedAccounts is Policy contract method and returns list of blocked
-// accounts hashes.
-func (p *Policy) getBlockedAccounts(ic *interop.Context, _ []stackitem.Item) stackitem.Item {
-	ba, err := p.GetBlockedAccountsInternal(ic.DAO)
-	if err != nil {
-		panic(err)
-	}
-	return ba.ToStackItem()
+// isBlocked is Policy contract method and checks whether provided account is blocked.
+func (p *Policy) isBlocked(ic *interop.Context, args []stackitem.Item) stackitem.Item {
+	hash := toUint160(args[0])
+	return stackitem.NewBool(p.IsBlockedInternal(ic.DAO, hash))
 }
 
-// GetBlockedAccountsInternal returns list of blocked accounts hashes.
-func (p *Policy) GetBlockedAccountsInternal(dao dao.DAO) (BlockedAccounts, error) {
+// IsBlockedInternal checks whether provided account is blocked
+func (p *Policy) IsBlockedInternal(dao dao.DAO, hash util.Uint160) bool {
 	p.lock.RLock()
 	defer p.lock.RUnlock()
 	if p.isValid {
-		return p.blockedAccounts, nil
+		length := len(p.blockedAccounts)
+		i := sort.Search(length, func(i int) bool {
+			return !p.blockedAccounts[i].Less(hash)
+		})
+		if length != 0 && i != length && p.blockedAccounts[i].Equals(hash) {
+			return true
+		}
+		return false
 	}
-	si := dao.GetStorageItem(p.ContractID, blockedAccountsKey)
-	if si == nil {
-		return nil, errors.New("BlockedAccounts uninitialized")
-	}
-	ba, err := BlockedAccountsFromBytes(si.Value)
-	if err != nil {
-		return nil, err
-	}
-	return ba, nil
+	key := append([]byte{blockedAccountPrefix}, hash.BytesBE()...)
+	return dao.GetStorageItem(p.ContractID, key) != nil
 }
 
 // setMaxTransactionsPerBlock is Policy contract method and  sets the upper limit
@@ -437,30 +433,15 @@ func (p *Policy) blockAccount(ic *interop.Context, args []stackitem.Item) stacki
 	if !ok {
 		return stackitem.NewBool(false)
 	}
-	value := toUint160(args[0])
-	si := ic.DAO.GetStorageItem(p.ContractID, blockedAccountsKey)
-	if si == nil {
-		panic("BlockedAccounts uninitialized")
-	}
-	ba, err := BlockedAccountsFromBytes(si.Value)
-	if err != nil {
-		panic(err)
-	}
-	indexToInsert := sort.Search(len(ba), func(i int) bool {
-		return !ba[i].Less(value)
-	})
-	ba = append(ba, value)
-	if indexToInsert != len(ba)-1 && ba[indexToInsert].Equals(value) {
+	hash := toUint160(args[0])
+	if p.IsBlockedInternal(ic.DAO, hash) {
 		return stackitem.NewBool(false)
 	}
-	if len(ba) > 1 {
-		copy(ba[indexToInsert+1:], ba[indexToInsert:])
-		ba[indexToInsert] = value
-	}
+	key := append([]byte{blockedAccountPrefix}, hash.BytesBE()...)
 	p.lock.Lock()
 	defer p.lock.Unlock()
-	err = ic.DAO.PutStorageItem(p.ContractID, blockedAccountsKey, &state.StorageItem{
-		Value: ba.Bytes(),
+	err = ic.DAO.PutStorageItem(p.ContractID, key, &state.StorageItem{
+		Value: []byte{0x01},
 	})
 	if err != nil {
 		panic(err)
@@ -479,27 +460,14 @@ func (p *Policy) unblockAccount(ic *interop.Context, args []stackitem.Item) stac
 	if !ok {
 		return stackitem.NewBool(false)
 	}
-	value := toUint160(args[0])
-	si := ic.DAO.GetStorageItem(p.ContractID, blockedAccountsKey)
-	if si == nil {
-		panic("BlockedAccounts uninitialized")
-	}
-	ba, err := BlockedAccountsFromBytes(si.Value)
-	if err != nil {
-		panic(err)
-	}
-	indexToRemove := sort.Search(len(ba), func(i int) bool {
-		return !ba[i].Less(value)
-	})
-	if indexToRemove == len(ba) || !ba[indexToRemove].Equals(value) {
+	hash := toUint160(args[0])
+	if !p.IsBlockedInternal(ic.DAO, hash) {
 		return stackitem.NewBool(false)
 	}
-	ba = append(ba[:indexToRemove], ba[indexToRemove+1:]...)
+	key := append([]byte{blockedAccountPrefix}, hash.BytesBE()...)
 	p.lock.Lock()
 	defer p.lock.Unlock()
-	err = ic.DAO.PutStorageItem(p.ContractID, blockedAccountsKey, &state.StorageItem{
-		Value: ba.Bytes(),
-	})
+	err = ic.DAO.DeleteStorageItem(p.ContractID, key)
 	if err != nil {
 		panic(err)
 	}
@@ -555,18 +523,9 @@ func (p *Policy) checkValidators(ic *interop.Context) (bool, error) {
 // like not being signed by blocked account or not exceeding block-level system
 // fee limit.
 func (p *Policy) CheckPolicy(d dao.DAO, tx *transaction.Transaction) error {
-	ba, err := p.GetBlockedAccountsInternal(d)
-	if err != nil {
-		return fmt.Errorf("unable to get blocked accounts list: %w", err)
-	}
-	if len(ba) > 0 {
-		for _, signer := range tx.Signers {
-			i := sort.Search(len(ba), func(i int) bool {
-				return !ba[i].Less(signer.Account)
-			})
-			if i != len(ba) && ba[i].Equals(signer.Account) {
-				return fmt.Errorf("account %s is blocked", signer.Account.StringLE())
-			}
+	for _, signer := range tx.Signers {
+		if p.IsBlockedInternal(d, signer.Account) {
+			return fmt.Errorf("account %s is blocked", signer.Account.StringLE())
 		}
 	}
 	maxBlockSystemFee := p.GetMaxBlockSystemFeeInternal(d)
diff --git a/pkg/core/native_policy_test.go b/pkg/core/native_policy_test.go
index 9a5c9f777..4312efdb4 100644
--- a/pkg/core/native_policy_test.go
+++ b/pkg/core/native_policy_test.go
@@ -2,7 +2,6 @@ package core
 
 import (
 	"math/big"
-	"sort"
 	"testing"
 
 	"github.com/nspcc-dev/neo-go/pkg/core/block"
@@ -10,6 +9,7 @@ import (
 	"github.com/nspcc-dev/neo-go/pkg/core/state"
 	"github.com/nspcc-dev/neo-go/pkg/core/transaction"
 	"github.com/nspcc-dev/neo-go/pkg/encoding/bigint"
+	"github.com/nspcc-dev/neo-go/pkg/internal/random"
 	"github.com/nspcc-dev/neo-go/pkg/io"
 	"github.com/nspcc-dev/neo-go/pkg/network/payload"
 	"github.com/nspcc-dev/neo-go/pkg/util"
@@ -162,16 +162,15 @@ func TestBlockedAccounts(t *testing.T) {
 	defer chain.Close()
 	account := util.Uint160{1, 2, 3}
 
-	t.Run("get, internal method", func(t *testing.T) {
-		accounts, err := chain.contracts.Policy.GetBlockedAccountsInternal(chain.dao)
-		require.NoError(t, err)
-		require.Equal(t, native.BlockedAccounts{}, accounts)
+	t.Run("isBlocked, internal method", func(t *testing.T) {
+		isBlocked := chain.contracts.Policy.IsBlockedInternal(chain.dao, random.Uint160())
+		require.Equal(t, false, isBlocked)
 	})
 
-	t.Run("get, contract method", func(t *testing.T) {
-		res, err := invokeNativePolicyMethod(chain, "getBlockedAccounts")
+	t.Run("isBlocked, contract method", func(t *testing.T) {
+		res, err := invokeNativePolicyMethod(chain, "isBlocked", random.Uint160())
 		require.NoError(t, err)
-		checkResult(t, res, stackitem.NewArray([]stackitem.Item{}))
+		checkResult(t, res, stackitem.NewBool(false))
 		require.NoError(t, chain.persist())
 	})
 
@@ -180,18 +179,16 @@ func TestBlockedAccounts(t *testing.T) {
 		require.NoError(t, err)
 		checkResult(t, res, stackitem.NewBool(true))
 
-		accounts, err := chain.contracts.Policy.GetBlockedAccountsInternal(chain.dao)
-		require.NoError(t, err)
-		require.Equal(t, native.BlockedAccounts{account}, accounts)
+		isBlocked := chain.contracts.Policy.IsBlockedInternal(chain.dao, account)
+		require.Equal(t, isBlocked, true)
 		require.NoError(t, chain.persist())
 
 		res, err = invokeNativePolicyMethod(chain, "unblockAccount", account.BytesBE())
 		require.NoError(t, err)
 		checkResult(t, res, stackitem.NewBool(true))
 
-		accounts, err = chain.contracts.Policy.GetBlockedAccountsInternal(chain.dao)
-		require.NoError(t, err)
-		require.Equal(t, native.BlockedAccounts{}, accounts)
+		isBlocked = chain.contracts.Policy.IsBlockedInternal(chain.dao, account)
+		require.Equal(t, false, isBlocked)
 		require.NoError(t, chain.persist())
 	})
 
@@ -220,28 +217,6 @@ func TestBlockedAccounts(t *testing.T) {
 		checkResult(t, res, stackitem.NewBool(false))
 		require.NoError(t, chain.persist())
 	})
-
-	t.Run("sorted", func(t *testing.T) {
-		accounts := []util.Uint160{
-			{2, 3, 4},
-			{4, 5, 6},
-			{3, 4, 5},
-			{1, 2, 3},
-		}
-		for _, acc := range accounts {
-			res, err := invokeNativePolicyMethod(chain, "blockAccount", acc.BytesBE())
-			require.NoError(t, err)
-			checkResult(t, res, stackitem.NewBool(true))
-			require.NoError(t, chain.persist())
-		}
-
-		sort.Slice(accounts, func(i, j int) bool {
-			return accounts[i].Less(accounts[j])
-		})
-		actual, err := chain.contracts.Policy.GetBlockedAccountsInternal(chain.dao)
-		require.NoError(t, err)
-		require.Equal(t, native.BlockedAccounts(accounts), actual)
-	})
 }
 
 func invokeNativePolicyMethod(chain *Blockchain, method string, args ...interface{}) (*state.AppExecResult, error) {
diff --git a/pkg/rpc/client/policy.go b/pkg/rpc/client/policy.go
index 7e6aa59bf..efffcd492 100644
--- a/pkg/rpc/client/policy.go
+++ b/pkg/rpc/client/policy.go
@@ -3,7 +3,6 @@ package client
 import (
 	"fmt"
 
-	"github.com/nspcc-dev/neo-go/pkg/core/native"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract"
 	"github.com/nspcc-dev/neo-go/pkg/util"
 	"github.com/nspcc-dev/neo-go/pkg/vm/stackitem"
@@ -41,39 +40,28 @@ func (c *Client) invokeNativePolicyMethod(operation string) (int64, error) {
 	return topIntFromStack(result.Stack)
 }
 
-// GetBlockedAccounts invokes `getBlockedAccounts` method on a native Policy contract.
-func (c *Client) GetBlockedAccounts() (native.BlockedAccounts, error) {
-	result, err := c.InvokeFunction(PolicyContractHash, "getBlockedAccounts", []smartcontract.Parameter{}, nil)
+// IsBlocked invokes `isBlocked` method on native Policy contract.
+func (c *Client) IsBlocked(hash util.Uint160) (bool, error) {
+	result, err := c.InvokeFunction(PolicyContractHash, "isBlocked", []smartcontract.Parameter{{
+		Type:  smartcontract.Hash160Type,
+		Value: hash,
+	}}, nil)
 	if err != nil {
-		return nil, err
+		return false, err
 	}
 	err = getInvocationError(result)
 	if err != nil {
-		return nil, fmt.Errorf("failed to get blocked accounts: %w", err)
+		return false, fmt.Errorf("failed to check if account is blocked: %w", err)
 	}
-	return topBlockedAccountsFromStack(result.Stack)
+	return topBoolFromStack(result.Stack)
 }
 
-func topBlockedAccountsFromStack(st []stackitem.Item) (native.BlockedAccounts, error) {
+// topBoolFromStack returns the top boolean value from stack
+func topBoolFromStack(st []stackitem.Item) (bool, error) {
 	index := len(st) - 1 // top stack element is last in the array
-	var (
-		ba  native.BlockedAccounts
-		err error
-	)
-	items, ok := st[index].Value().([]stackitem.Item)
+	result, ok := st[index].Value().(bool)
 	if !ok {
-		return nil, fmt.Errorf("invalid stack item type: %s", st[index].Type())
+		return false, fmt.Errorf("invalid stack item type: %s", st[index].Type())
 	}
-	ba = make(native.BlockedAccounts, len(items))
-	for i, account := range items {
-		val, ok := account.Value().([]byte)
-		if !ok {
-			return nil, fmt.Errorf("invalid array element: %s", account.Type())
-		}
-		ba[i], err = util.Uint160DecodeBytesLE(val)
-		if err != nil {
-			return nil, err
-		}
-	}
-	return ba, nil
+	return result, nil
 }
diff --git a/pkg/rpc/client/rpc_test.go b/pkg/rpc/client/rpc_test.go
index 1be95bba9..d1913a12f 100644
--- a/pkg/rpc/client/rpc_test.go
+++ b/pkg/rpc/client/rpc_test.go
@@ -16,7 +16,6 @@ import (
 	"github.com/gorilla/websocket"
 	"github.com/nspcc-dev/neo-go/pkg/config/netmode"
 	"github.com/nspcc-dev/neo-go/pkg/core/block"
-	"github.com/nspcc-dev/neo-go/pkg/core/native"
 	"github.com/nspcc-dev/neo-go/pkg/core/state"
 	"github.com/nspcc-dev/neo-go/pkg/core/transaction"
 	"github.com/nspcc-dev/neo-go/pkg/crypto/hash"
@@ -378,15 +377,15 @@ var rpcClientTestCases = map[string][]rpcClientTestCase{
 			},
 		},
 	},
-	"getBlockedAccounts": {
+	"isBlocked": {
 		{
 			name: "positive",
 			invoke: func(c *Client) (interface{}, error) {
-				return c.GetBlockedAccounts()
+				return c.IsBlocked(util.Uint160{1, 2, 3})
 			},
-			serverResponse: `{"id":1,"jsonrpc":"2.0","result":{"state":"HALT","gasconsumed":"2007390","script":"EMAMEmdldEJsb2NrZWRBY2NvdW50cwwUmmGkbuyXuJMG186B8VtGIJHQCTJBYn1bUg==","stack":[{"type":"Array","value":[]}],"tx":null}}`,
+			serverResponse: `{"id":1,"jsonrpc":"2.0","result":{"state":"HALT","gasconsumed":"2007390","script":"EMAMEmdldEJsb2NrZWRBY2NvdW50cwwUmmGkbuyXuJMG186B8VtGIJHQCTJBYn1bUg==","stack":[{"type":"Boolean","value":false}],"tx":null}}`,
 			result: func(c *Client) interface{} {
-				return native.BlockedAccounts{}
+				return false
 			},
 		},
 	},