Why Does Revoking a Token Allowance Require a Blockchain Transaction and Incur a Gas Fee?
Revoking a token allowance requires a blockchain transaction because the allowance itself is stored as state on the blockchain. Changing any state on a decentralized ledger, whether it's transferring tokens or changing a permission, requires a new transaction.
This transaction must be validated by miners or validators and included in a block. The gas fee compensates the network participants for the computational resources used to process this change and secure the network.
Glossar
Gas Fee
Mechanism ⎊ Gas fees represent the computational cost required to execute a transaction or smart contract on a blockchain network, particularly Ethereum and its Layer-2 solutions, functioning as a deterrent against denial-of-service attacks and a reward for network validators.
Blockchain Transaction
Mechanism ⎊ A blockchain transaction represents a digitally signed record of an exchange or action on a distributed ledger.
Token Allowance
Allocation ⎊ Token allowance, within cryptocurrency derivatives, represents a predetermined quantity of an underlying asset or its equivalent value designated for a specific trading strategy or participant.
Allowance
Mechanism ⎊ Allowance, within cryptocurrency and financial derivatives, represents a pre-approved quantity of computational resources or collateral designated for specific operations, notably in decentralized finance (DeFi) protocols and options execution.