Definition ∞ On-chain approval refers to a transaction recorded on a blockchain that grants permission for another address or smart contract to spend a specific amount of tokens from a user’s wallet. This mechanism is fundamental for interacting with decentralized applications (dApps), such as decentralized exchanges or lending protocols. The approval is an explicit, verifiable authorization that lives permanently on the blockchain. It enables automated interactions without requiring repeated private key signatures for each transaction.
Context ∞ News related to on-chain approvals often concerns security best practices and potential vulnerabilities. While essential for DeFi functionality, excessive or indefinite approvals can pose a risk if the approved contract is compromised. Users are regularly advised to review and revoke unnecessary approvals to enhance their digital asset security. This topic is central to discussions about secure interaction within decentralized ecosystems.
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