Delegated Spending

Definition ∞ A mechanism allowing a digital asset owner to grant another party permission to spend specific assets on their behalf. This function enables flexible management of funds without transferring full ownership or private keys. It is often implemented through smart contracts that define precise spending limits or conditions. This method enhances operational efficiency and security for various digital asset applications.
Context ∞ Delegated spending is gaining traction in decentralized finance and enterprise blockchain solutions, offering solutions for treasury management and multi-user accounts. A key discussion point involves the scope of delegated authority and the security measures to prevent misuse. Future developments aim to standardize these delegation protocols for broader interoperability and user confidence.