As the use of blockchain technology has continued to gain momentum, it has become a pressing issue concerning responsible use. Decentralized applications are largely dependent on token approvals if they are to work seamlessly, but it has been an issue that has left most users unsure about its operations, as well as its validity period, which contributes to most insecurity involved in storing digital assets. Instead, it comes from outdated permissions granted previously.
Token approvals enable smart contracts to transfer funds on behalf of a user. This solution opens doors to DeFi trading platforms, NFT marketplaces, and staking services. There’s a risk of attacks on user accounts by malicious smart contracts when token approval mechanics are misinterpreted. The preferable part about this process comes when blockchain technology provides token approval analysis to users in a completely secure way. They never have to share seed phrases.
This article aims at providing a comprehensive look at how users are able to check token approvals securely, why token approval visibility is important, how Infinite Approvals affect wallet risk, and best practices that help ensure long-term crypto security.
Token Approvals: What Are They, and Why Do They Exist?
Token approvals refer to the permission granted to a smart contract by a wallet owner to enable the transfer of tokens according to specific conditions.
In traditional finance, intermediaries are responsible for authorization and transactions. In crypto, the role of the intermediary is substituted by the smart contract. It is mandatory for the user to authorize the usage of their assets.
Token approvals exist to:
Permit decentralized trading without the need for confirmations
Enables interactions such as staking, yield farming, etc. by algorithms
Enable transferring of NFTs in marketplace transactions
Transaction friction & gas prices reduced
When approvals are authorized, they are "in effect" until changed or cancelled. It is the lasting existence of these approvals that makes understanding and tracking them so critical.
Why Token Approvals Should Be Visible for Wallet Security
The observation of token approvals is not just about technology—it’s security practice.
Unattended approvals may:
Provide outdated and/or abandoned contracts perpetual rights
Permit harmed contracts to drain funds
Unnecessary exposure on several dApps
Accumulate silently as users interact with the new platforms
Of prime importance is the fact that most wallet draining happens without any compromise of the private keys. This takes place because the attackers often leverage the approvals issued by the users but forgotten by them. This is an important aspect because it helps users monitor the risks and keep their assets under their control by frequently checking the approvals of the tokens.
Is Viewing Token Approvals Possible Without Requiring Private Key Access?
Yes. Token approvals can be observed safely and passively from the publicly available data of the blockchain.
This is made possible by:
Wallet addresses are public identifiers.
Approval transactions are recorded on-chain
Existed as blockchain explorers with Read
Supports view data without connecting the wallet
Users will not have to:
Login to a wallet
Input seed phrases
Private keys to share
Signing transactions
Having only the public wallet address is sufficient to query the approval status.
Safe ways to display token approvals
1. Blockchain Explorers
Blockchain explorers give a clear insight into the on-chain activities.
With the help of the explorer, users can:
Enter the public wallet address
Token approval transaction identification
List the smart contracts that have permissions
Review approval history overtime
The explorer is in read-only mode, which identifies it as one of the safest ways to view approvals for sensitive information.
2. Approval Dashboards for Dedicated Tokens
An approval dashboard is used to display an aggregate data set that is generated based on permissions
These tools:
Displays approved tokens and spender contracts
Emphasize allowance limits
To distinguish active and inactive approvals
Enable users to understand the scope of permissions
Whereas wallet linking might be required before the approvals can be revoked, viewing them does not require signing any transactions.
3. Read-Only or Watch-Only Wallet Views
Most digital wallets possess the watch-only feature. This allows users to:
Monitor addresses without control access
Manage balances and approvals securely
Audit permissions on multiple wallets
This is especially useful for:
Long-term storage wallets
Security audits
Educational purposes and tracking
Step by Step - Viewing Token Approvals Securely
Copy your public wallet address
Open a trusted blockchain explorer or approval dashboard
Paste the address in the search box
Go to the approval of tokens or permissions page
View approved contracts and amount of allowance
Track unused or suspicious approvals for later evaluation
In no case are private keys, seed words, or passwords entered by users.
Understanding Infinite Approvals
One of the most prominent ideas in the context of reviewing permissions is Infinite Approvals.
What are Infinite Approvals?
Infinite approvals provide a smart contract with unlimited spending authority of a particular token. Infinite approvals are used to overcome the need to do repeated approval transactions. It enhances the usability of the contract, making the usage process much easier and also saves gas.
Why Infinite Approvals Matter
Although convenient, Infinite Approvals are problematic for several reasons regarding:
Unlimited tokens could be extracted if the contract was hacked
If a protocol is malicious, there are exposed funds
If users are not reminded about approvals, the exposure persist indefinitely
Infinite Approvals are not inherently safe, though Infinite Approvals should only be granted by audited contracts if trusted.
Advantages and Risks of Token Approvals
Advantages
Seamless DeFi interactions
Reduced transaction friction
Lowered cumulative gas fees
Automated smart contract execution
Risks
Long-term permissions
Exposure to exploited contracts
Trouble in tracking multiple approvals
Increased impact of malicious behavior
Understanding both sides helps users make informed approval decisions.