Why does purchasing tokens require an Approve or Create Account operation?
When buying memecoin or other tokens based on the Ethereum (ETH) chain, you will usually see an Approve transaction. This transaction is used for authorization for the following reasons:
Authorize smart contracts to access your tokens When buying or exchanging tokens, the smart contract needs to access a certain token (ETH) in your wallet in order to deduct the corresponding amount and complete the transaction. The Approve transaction is your authorization to the smart contract, allowing it to operate a specific number of tokens in your wallet.
Enhance security and prevent unauthorized operations Approve operations are limited to smart contracts that users actively approve, which can prevent malicious contracts from directly operating your wallet. This authorization mechanism allows users to maintain control of their wallet assets while ensuring that only authorized contracts can trade.
One-time setup to reduce repeated operations Some applications allow users to approve larger amounts at one time, which can save repeated authorization steps in subsequent transactions and simplify the operation process. Re-authorization is required only after the authorized amount is used up. Therefore, the Approve transaction is an important and necessary authorization step when buying memecoin on the ETH chain.
When buying memecoin on the Solana chain, you often see a Create Account operation. This is because Solana's account system is different from Ethereum and has specific mechanism requirements. Here are the reasons:
Solana's account structure Each token on the Solana chain (such as memecoin) will create a separate account on the blockchain to store the user's token balance. When you first purchase a specific token, the system will create an associated account for your wallet address to store the token. Therefore, each new token requires a separate account.
The need to store tokens for the first time When a user first purchases a token on Solana, the wallet does not have a ready-made place to store the token balance. Therefore, a Create Account operation is required to generate an account associated with the token to ensure that the wallet address can store memecoin.
Network efficiency and resource management Solana uses this account mechanism to improve efficiency, so that different tokens are stored independently in their respective accounts, which is easy to manage and query, and avoids confusion. Although some fees will be incurred, this will keep the entire network operating efficiently.
Rent and Account Rent Solana's on-chain storage space has a rental fee, so you will need to pay a certain fee when creating an account. After the account is created, the balance and transfer information of the token can be processed in the account without having to create it again. The Create Account operation when creating a token actually creates a new account for your wallet address to store the specific token. Therefore, the Create Account transaction is an important and necessary authorization step when purchasing memecoin on the SOL chain. When the token is no longer traded, you can refund it through https://claimyoursol.com/.