Should I use EAV model?

Great question, but of course, there is no “one true way”. As per @BenV, Magento does use the EAV model. My experience with it has been overwhelmingly positive, however it does trip up other users. Some considerations:

1. Performance.
EAV requires complex, multi-table joins to populate your object with the relevant attributes. That does incur a performance hit. However, that can be mitigated through careful caching (at all levels through the stack, including query caching) and the selective use of denormalization. Magento does allow administrators to select a denormalized model for categories and products where the number of SKUs warrants it (generally in the thousands). That in turn requires Observers that trigger re-indexing (always good!) and updates to the “flat” denormalized tables when product data changes. That can also be scheduled or manually triggered with a prompt to the administrator.

2. 3rd Party User Complexity
If you ever plan to make this application available to other users, many will find EAV too complex and you’ll end up dealing with a lot of bleating and uninformed abuse on the user forums (ref Magento!!).

3. Future extensibility and plugin architecture.
There is no doubt that the EAV model really comes into it’s own when extensibility is a factor. It is very simple to add new attributes into the model while minimizing the risk of breaking existing ORM and controller code.

4. Changes in datatype
EAV does make it a little harder to alter attribute datatypes. If your initial design calls for a particular attribute datatype that changes in future (say int to varchar), it means that you will have to migrate all the records for that attribute to the corresponding table that matches the new datatype. Of course, purists would suggest that you get the design right first time, but reality does intrude sometimes!

5. Manual product imports
One thing that EAV makes almost impossible is importing products (or other entities) into the database using SQL and/or phpMyAdmin-style CSV/XML. You’ll need to write an Importer module that accepts the structured data and passes it through the application’s Model layer to persist it to the database. That does add to your complexity.

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