Part 7/16:
This experiential shift underscores a crucial misunderstanding: signing a transaction does not necessarily mean “approval” of a specific, limited action. Instead, users frequently unknowingly grant broad permissions—tokens collection rights—that can be exploited later.
How Hackers Exploit Smart Contract Permissions
The core of the threat lies in token allowances:
Unlimited approvals: Many dApps request permission to access all tokens of a certain type in your wallet, indefinitely.
Misleading transaction prompts: Wallet interfaces often display complex code or long strings of blockchain instructions, which average users might blindly approve.