Token Approval
Permission you grant a smart contract to move a specific token from your wallet on your behalf.
✦ Key Insight
Old approvals are a standing liability. If an approved contract is later exploited, the attacker can use your existing permission to drain that token without any further action from you.
✕ Common Misconceptions
Accepting unlimited approvals by habit. Set a finite amount where the interface allows it, and audit and revoke approvals periodically.
Detailed Explanation
In Practice
Dig Deeper
Wallet
Software or hardware that stores your private keys and lets you sign transactions.
Token
An asset created by a smart contract on an existing blockchain rather than being that blockchain's native currency.
Blockchain
A shared, append-only record of transactions maintained by many independent computers at once.
Transaction
A blockchain transaction is a signed or authorized instruction that changes blockchain state or transfers value when accepted by the network.