How Do Self-Custody Wallets Interact with Token Ownership Standards?
Self-custody wallets (like MetaMask or hardware wallets) hold the user's private keys, which are the cryptographic proof of ownership for the tokens associated with their public address. When a user wants to transfer tokens, the wallet signs the transaction using the private key, proving they are the rightful owner as defined by the token standard.
The wallet simply facilitates the interaction with the smart contract functions.
Glossar
Cryptographic Proof of Ownership
Attestation ⎊ Cryptographic Proof of Ownership, within the context of cryptocurrency derivatives and financial markets, represents a digitally verifiable assertion of control over a specific asset or identity.
Token Ownership
Attribution ⎊ Token ownership is cryptographically established by the possession of the private key corresponding to the address holding the asset on the ledger, providing immutable proof of control.
Wallets
Custody ⎊ Cryptocurrency wallets, in the context of derivatives trading, primarily function as secure repositories for digital assets, facilitating access and control while adhering to stringent regulatory frameworks.