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Delegated Authority

Definition

Delegated authority describes a system where an entity grants specific rights or permissions to another party to act on its behalf. Within blockchain and cryptocurrency contexts, this often pertains to smart contracts or multi-signature wallets where one party can authorize transactions under predefined conditions. It allows for the distribution of control and operational capabilities without surrendering ultimate ownership or oversight. This mechanism is crucial for managing complex decentralized applications and ensuring secure, permissioned access to digital assets.