Delegate.Cash is a decentralized registry to protect different non-fungible user tokens and keep stored NFTs safe. Today on NFTexpress we will learn about this hot wallet and why it is an option that is growing in popularity every day.
Cryptocurrencies and NFTs have as a major feature for the user the power of self-custody, in which people have to trust the protocol they are interacting with to take full control of their digital objects.
The best or most well-known way to securely store one’s blockchain assets are the well-known “cold wallets”, such as the best-known hardware ones are Trezor, Lattice, Grid Plus, among others.
However, the problem is that in the NFTs space, people would have to store their blue-chips and derivatives in cold wallets, but then are forced to use these wallets with extremely valuable assets to claim different airdrops provided by the same NFTs projects they previously invested in.
Consequently, under these security features, all it takes to fall for a scam just by owning very valuable NFTs is a similar and very convincing malicious website that ends up tricking a user into signing a transaction they don’t understand.
Here comes into play delegate.cashThis project will be able to keep the NFTs safe while still actively using the cold wallet as the user wishes through delegation.
In this opportunity, we will learn about the best features of delegate.cash and how any crypto-user can use it to improve the security of their NFTs.
Last year, fraudsters stole millions and millions of dollars in NFTs. September 2022, Foobaran auditor, developer and writer, presented Delegate.cash
This NFT security solution is gaining popularity as users and the projects themselves are adopting this new tool into their ecosystem, including large non-fungible token studios such as Yuga Labs, Art Blocks, Cyber Brokersamong others.
How does delegate.cash work?
Delegate.cash allows you to protect valuable NFTs while actively using them to participate in various activities such as airdrop claims or DAO governance.
This system is a smart registry based on smart contracts that, among other things, allows you to delegate the powers of NFTs from your cold wallet to an “active wallet” of your choice such as a MetaMask account.
The user’s NFTs will remain in their cold wallet no matter what, but their linked burner can act on their behalf.
With this delegation systemWith this delegation system, you get the benefits of a hardware wallet without having to search for it every time you need to sign a transaction. Furthermore, in the event that the NFT that the user acquired ended up being a scam, any consequences will be limited to its delegated burner that the user specifically isolated in case of the malicious attack. The NFTs will remain fully intact in the cold wallet..
Also, it should be noted that the user delegates, and this means that anyone can reliably use this solution without permission. The system can also be implemented on any EVM-compatible blockchain. This tool already allows blockchains such as Polygon, Avalanche, Arbitrum, Optimism, among others.
How to use delegate.cash?
With delegate.cash it is possible to perform different utilities in the context of NFTs.
Delegate all NFT powers from your cold wallet to a hot wallet of your choice.
Delegate the powers of a single NFT to a single desired wallet.
In case you are interested in the first option, delegating to a disposable burner, follow these steps:
Go to delegate.cash
Connect the cold wallet in which the NFTs are stored such as Ledger.
Copy the address of your designated wallet and paste it into the “Wallet” user interface of delegate.cash as follows:
Press the “Submit Delegation” button and complete the transaction with your cold wallet to finalize your entry into the registry.
That’s it! You can then keep track of that and future delegations using the “View recent delegations” button below the user interface.
If your idea is to delegate the power of a single NFT, the process is similar to the one we went over earlier. You would go through the NFT user interface, paste in the desired hot wallet to bind it and then enter the NFT contract address and its token ID number and finish with delegating your single non-fungible token that you wanted to delegate.
NFT scammers have become increasingly sophisticated in recent years with the popularity and adoption of the non-fungible token industry. Consequently, it is not uncommon or surprising that similar cheating websites have ensnared many serious and well-known crypto investors.
However, the industry is also creating solutions such as delegate.cash, where we will now have a great defense against these malicious attacks. There is no doubt that these projects such as delegate.cash are aiming to turn the tide against fraudsters and at the same time, teach more and more users how to lock down their valuable non-fungible tokens through wallet delegation.
Written by Rodrigo Catalan (TW: @RodrigoCatalanB) for NFT Express.