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.
Comparison: Approval for All vs Infinite Approvals
Feature | Approval for All (NFTs) | Infinite Approvals (Tokens) |
Asset Type | Non-fungible tokens | Fungible tokens |
Scope of Permission | Entire NFT collection | Unlimited token amount |
Common Use Case | NFT marketplaces | DeFi platforms |
Primary Risk | Loss of unique NFTs | Drain of token balances |
Strengths and Weaknesses of Approval for All
Advantages
Quicker trading and execution of NFT
Reduces transaction costs
Lower gas costs for active traders
Improved marketplace interactions
Disadvantages
Availability of high-value resources
Higher stakes are involved if the contract is hacked
Users may forget active permissions
Limited visibility without tracking tools
Security Risks Users Should Understand
Both Approval for All and Infinite Approvals introduce similar security concerns:
Smart contract exploits can abuse permissions
Phishing scams may trick users into approving malicious contracts
Marketplace shutdowns or rug pulls increase exposure
Long-standing approvals can go unnoticed
Because blockchain transactions are irreversible, misuse of these permissions can result in permanent asset loss.
Why NFT Marketplaces Use Approval for All
Marketplaces adopt Approval for All to:
Improve transaction reliability
Increase liquidity and execution speed
Reduce failed trades
Provide a smoother user experience
While beneficial from a platform perspective, this model shifts more responsibility onto users.
Best Practices for Managing NFT Approvals
To reduce risk, users should follow these best practices:
Regularly review active approvals
Revoke permissions for unused platforms
Avoid approving unknown or unverified marketplaces
Use a dedicated wallet for NFT trading
Understand the scope of each approval before signing
These precautions apply equally to Infinite Approvals across DeFi platforms.
How Infinite Approvals Fit Into the Broader Crypto Ecosystem
Infinite Approvals are widely used across DeFi because they enable automation, reduce repetitive approvals, and support complex protocols. Approval for All in NFT marketplaces applies the same design principle to non-fungible assets, prioritizing efficiency over granular control.
Conclusion
Approval for All permissions in NFT marketplaces are similar to Infinite Approvals because both grant wide, persistent access to user assets in exchange for convenience and efficiency. While these mechanisms enable smoother transactions and better platform usability, they also introduce additional security responsibilities for users.
By understanding how these permissions work and actively managing approvals, users can participate in NFT marketplaces and crypto protocols more safely and confidently. Education remains the most effective tool for reducing risk in decentralized systems.
People Also Ask: Common Questions Explained
1. Is Approval for All unsafe?
Approval for All is not inherently unsafe, but it increases risk if the approved contract is compromised.
2. Can a marketplace drain my NFTs?
A legitimate marketplace cannot arbitrarily steal NFTs, but vulnerabilities or malicious contracts can abuse granted permissions.
3. How do I revoke Approval for All?
Users can revoke approvals through wallet interfaces or blockchain approval management tools.
4. Is Approval for All the same as selling an NFT?
No. Approval for All only grants permission; it does not execute a sale by itself.
5. Why do wallets warn about Infinite Approvals?
Wallets warn users because unlimited permissions increase the potential impact of security breaches.
