Send an ERC20 Approval Request in Your Web3 App

Written by
Tatum team
June 2, 2023
min. read

The Ethereum ecosystem thrives on the concept of smart contracts and tokens. One of the most common tokens on Ethereum is the ERC20 token. These tokens have a feature that allows a spender to withdraw from your account, up to the amount you have approved. This is typically used in decentralized exchanges where the contract needs the approval to send your tokens to the buyer. We'll be showing you how to send an ERC20 approval request using MetaMask and Tatum SDK.

Understanding ERC20 approval:

Before we delve into the code, let's talk a bit about what an approval in the ERC20 standard means. In the ERC20 token standard, the `approve` function allows the owner of the token to approve a spender to spend a certain amount of tokens from the owner's balance. This mechanism is widely used in the DeFi space, especially in scenarios involving decentralized exchanges or automated market makers.

The Importance of Sending ERC20 Approval Requests in Your Web3 App

When building a web3 application that interacts with ERC20 tokens, it is crucial to understand the importance of sending ERC20 approval requests. These approval requests allow users to grant permission for a smart contract or another address to spend their tokens on their behalf. Let's explore the significance of sending ERC20 approval requests and why it is a critical step in developing a seamless and secure web3 application.

  • Enabling Token Transfers: Sending ERC20 approval requests is essential for enabling token transfers within your web3 app. By obtaining approval from the token holder, the app gains the necessary authorization to transfer tokens on their behalf. This functionality is particularly crucial in scenarios where the app needs to execute token transfers automatically, such as facilitating trades on decentralised exchanges or enabling token-based services.
  • Enhancing User Control and Security: ERC20 approval requests empower token holders with control over their assets. Users can decide which contracts or addresses they trust to manage their tokens, ensuring that only authorized entities can access and transfer their funds. This permission-based approach enhances security, mitigates the risk of unauthorised token transfers, and provides users with peace of mind while interacting with your web3 app.
  • Enabling Complex Smart Contract Interactions: Many web3 applications involve complex smart contract interactions that require spending ERC20 tokens. By implementing ERC20 approval requests, your app can seamlessly interact with other contracts, such as decentralized finance (DeFi) protocols or non-fungible token (NFT) marketplaces. This functionality unlocks a wide range of possibilities, allowing your app to offer diverse and innovative features to users.
  • Facilitating Integration with Third-Party Services: Sending ERC20 approval requests also facilitates integration with third-party services and platforms. Many popular DeFi protocols and dApps require users to grant approval for token transfers before interacting with them. By incorporating ERC20 approval requests into your web3 app, you enable seamless integration with these services, expanding the possibilities and functionalities available to your users.

Sending an ERC20 approval request:

MetaMask is one of the most popular Ethereum wallets, while Tatum SDK provides a robust set of tools for blockchain development. Together, they can be used to easily send an ERC20 approval request. Here's how:

In this code, we first initialize the Tatum SDK for the Ethereum network. We then specify the address of the USDT token, the address of the spender we are approving, and the amount we are approving for them to spend. The `approveErc20` method prepares the approval operation and sends it to the Ethereum network, returning a transaction ID which can be used to track the transaction status.

The ERC20 approval mechanism is a powerful tool that is essential for interacting with many DeFi protocols. With MetaMask and Tatum SDK, sending an ERC20 approval request becomes a breeze.

[.c-text-center]Easily Send an ERC20 Approval Request in Your Web3 App With Tatum SDK[.c-text-center]

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Learn more about Ethereum's ERC20 token standard and its capabilities to build robust and flexible financial instruments.

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