Address Delegation

Address delegation in cryptocurrency refers to the practice of assigning the control or ownership of a digital wallet address to another party. This allows the delegated party to carry out transactions on behalf of the original owner, typically for a specific purpose or period of time.

The delegated party may have limited access or permissions within the wallet, such as the ability to send and receive funds but not to make changes to the wallet settings or security features. This can be useful for delegating authority to a trusted individual or a service provider, such as an exchange or payment processor.

Address delegation can also be used for managing funds on behalf of other users, such as in the case of custodial services or shared accounts. This feature provides flexibility and convenience for users while maintaining security and control over their digital assets.