How Do Newer Token Standards like ERC-777 Improve upon the Allowance Mechanism? ▴ Learn

How Do Newer Token Standards like ERC-777 Improve upon the Allowance Mechanism?

ERC-777 improves on ERC-20's allowance by introducing "operators" instead of allowances, which is a more general and flexible permission system. More importantly, it adds tokensToSend and tokensReceived hooks.

These hooks allow a contract or wallet to react to incoming or outgoing transactions, effectively enabling a "push" model where a contract can reject unwanted transactions. This can prevent tokens from getting stuck in incompatible contracts, a common issue with ERC-20.

How Do Token Allowances Enable the Creation of Collateralized Debt Positions (CDPs) in DeFi Lending?

What Happens to a Token Allowance If the Dapp’s Smart Contract Is Upgraded or Changed?

How Do Tools like Etherscan or Revoke.cash Help Users Manage Their Allowances?

Can a Smart Contract Use More of a Token than What Is Specified in the Allowance?