Tokens Aren’t in Users’ Wallets
Contrary to popular belief, when users 'hold’ tokens in a crypto wallet, they’re not really holding them there. On platforms like Ethereum and its variants, ERC20 tokens and NFTs (all tokens except ETH), are essentially balance entries inside smart contracts. These smart contracts merely keep a record of the number of tokens each account address possesses. When a user initiates a token transfer, they’re simply directing the smart contract to modify this entry, reducing their balance, and increasing the recipient’s balance accordingly.
The reality more closely resembles having balances in multiple bank accounts rather than possessing physical currency in a wallet. Users are at the mercy of the smart contract as their balance is just an entry inside it. This method contrasts with native tokens like BTC or ETH, which are not balance entries in a smart contract, and therefore are not at the mercy of a single developer.
The Issue of Spend Approvals
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We współpracy z: https://cryptodaily.co.uk/2023/09/even-with-their-keys-users-dont-control-their-crypto-heres-why
