Approve

Approving tokens such as ERC20, ERC721, ERC1155, ERC998 and MYSTERY-BOX is a key step in using these tokens in decentralized finance. The approve function enables you to set the maximum amount of tokens that a specific smart contract can use.

Without approval, the Exchange, Staking Contracts wouldn't be able to transfer the tokens (ERC20, ERC721, ERC1155, ERC998) from one address to another, thus making the transaction impossible.

With Approval, transactions such as buying or selling on a Marketplace, staking tokens for rewards, and more can be smoothly completed. This crucial step ensures that trusted contracts can transfer and use tokens on behalf of the owner, making it a key aspect of decentralized finance.

Requirements

Approving tokens requires the owner to call the approve function and specify contract address that will be able to transfer asset. This authorization is necessary for the specified contract to transfer the tokens on the owner's behalf.

Functionality of the Approve Process

It's important to note that the Approve function does not transfer ownership, but rather enables a trusted spender to transfer tokens on the owner's behalf. The Approve function is also reversible, as the token owner can change or revoke the approval at any time.