What is ERC20 allowance and how does it relate to cryptocurrencies?

3 answers

• Raghavan SJun 09, 2024 · a year ago
  Sure! ERC20 allowance refers to the permission given by a token holder to another address to spend a certain amount of tokens on their behalf. This feature is commonly used in decentralized exchanges (DEXs) and other smart contract applications. By granting allowance, users can trade their tokens without having to execute each transaction individually. It provides convenience and efficiency in token transfers within the Ethereum network.
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• Matthiesen BurtonFeb 13, 2021 · 4 years ago
  ERC20 allowance is like giving someone the keys to your car. It allows another address to spend a specific amount of tokens from your wallet. In the context of cryptocurrencies, ERC20 allowance is important because it enables seamless token transfers and trading on decentralized platforms. It eliminates the need for manual approval for each transaction, making it easier for users to participate in various token-related activities.
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• Fabricius McCrackenJul 27, 2023 · 2 years ago
  At BYDFi, we understand the significance of ERC20 allowance in the cryptocurrency ecosystem. It plays a crucial role in enabling efficient token trading and transfers. With ERC20 allowance, users can easily interact with decentralized exchanges and other Ethereum-based applications. It simplifies the process of managing and utilizing tokens, making it more user-friendly and accessible for cryptocurrency enthusiasts.
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