In the NFT marketplaces and decentralized crypto platforms, users usually need to grant permissions before they are allowed to trade, sell, or transfer any kind of assets. Two of the most discussed permission models are Approval for All in NFT marketplaces and Infinite Approvals in token-based DeFi applications. These permissions work on different asset types but have remarkably similar functionalities in that both permissions allow unlimited, open-ended access to a user's assets.
Anyone who is involved in the crypto ecosystem needs to understand why NFT marketplace "approval for all" permissions are actually infinite approvals. Such permissions directly relate to asset custody, transaction security, and user risk exposure. This article elaborates on the concept in great detail to aid readers in making a decision.
What is "Approval for All" in NFT Marketplaces?
"Approval for All" is a permission mechanism in the NFT standards ERC-721 and ERC-1155. By giving this permission, a user allows a marketplace smart contract to manage any NFTs of a specific collection that are stored within their wallet.
The main objective of Approval for All is not to approve every separate transaction of the NFT but instead to grant an allowance to the marketplace for:
Transfer NFTs on behalf of the user
Execute sales once a buyer is found
Manage listings without repeated confirmations
This permission remains valid until it is explicitly revoked by the user.
What are Infinite Approvals in Crypto?
Infinite approvals are most associated with ERC-20 tokens used in DeFi protocols. When giving an approval, users often allow a smart contract to spend an unlimited amount of a token rather than approving a fixed quantity.
This approach enables:
Repeated transactions without re-approval
Automated Trading and Liquidity Operations
Lower gas fees and better user experience
Like Approval for All, unlimited approvals do not expire but remain valid unless revoked.
Why All Approval and Unlimited Approvals are Functionally Equivalent
Although both permissions refer to different assets, the underpinning logic behind them is virtually the same.
1. Access to a broad universe of assets
Approval for All grants permission to control every NFT in a given collection, and Infinite Approvals allow unlimited token balance access. In both cases, permissions are granted over an intentionally wide scope.
2. Persistent Authorization
Both approvals are one-time grants in nature and not events; once the grant is made, the smart contract will continue to operate without any further wallet confirmations being required.
3. Reliance upon Contract Trust
Users rely on the fact that the deployed smart contract:
Free of possible vulnerabilities
Will not act maliciously
Will only carry out intended actions
4. Convenience Over Control
Convenience and speed, therefore, are emphasized by these permissions, sometimes at the expense of reduced granular control over the assets.
5. Increased Risk Exposure
In case the approved contract is compromised, an attacker can utilize that permission without having to get any other authorization.
How approval for all works on the smart contract level
When a user turns on Approval for All, this permission is recorded on-chain in the NFT contract. From that moment forward:
Programmatic transfers by the marketplace
Listings and sales execute automatically
There is no need for a wallet pop-up for every transaction
This operational model closely parallels how the Infinite Approvals work under token-based contracts.