Pre-authorized Transaction

What is a pre-authorized transaction?

A pre-authorized transaction (also known as session key) refers to on-chain activities that a user authorizes Stavax or a decentralized application (dApp) to execute on their behalf with specific permissions.

Use case of pre-authorized transaction

Pre-authorized transactions open up new possibilities for dApps by enabling smoother user interactions. Key applications include:

• Skipping Confirmations: Useful for games and social apps with frequent small transactions. Each time you confirm a transaction in your wallet, it disrupts your experience. With pre-authorization, users can enable a dApp to automatically confirm transactions for activities such as check-ins, claiming rewards, and character upgrades, allowing users to enjoy the game without interruptions.

• Automatic Transactions: Pre-authorization enables dApps to implement innovative payment models, such as recurring payments, dollar-cost averaging, and subscriptions. For example, users can pre-authorize transactions to automatically purchase tokens at a target price, even when they are offline.

Pre-Authorized Transactions at Stavax

Current Phase Scope

In the initial rollout, our focus is on implementing the "skipping confirmations" functionality, with plans to expand into "automatic transactions" in the next phase of development.It’s important to note that pre-authorized transactions are not universally supported across all wallet types, blockchains, or transaction categories. The specifics are as follows:

• Wallet Type: Available for Smart Wallets.

• Blockchain Compatibility: Chains supported within the Smart Wallet

• Transaction Types: We are implementing this feature for common transaction types, which include:

  • Contract Interactions: Transactions that do not involve asset transfers, such as on-chain game check-ins.

  • Native Token Transfers: Transactions involving native tokens, such as purchasing in-game items using ETH on the Ethereum network.

  • ERC-20 Token Transfers: Transactions involving ERC-20 tokens, such as purchasing in-game items with USDT.

Key Functionalities

1. Initiating a Pre-Authorized Transaction

• Request for Pre-Authorization: When a user initiates an on-chain transaction from a dApp, Stavax will evaluate whether it is eligible for pre-authorization. If it qualifies, a checkbox will appear, offering the option to "Allow auto-sign for similar transactions from now on."

• Setting Limitations: Users can define permission for pre-authorization, including:

  Condition	Description	How to set
  Session Duration	Maximum time allowed for a pre-authorized transaction.	The user chooses from 3 options: 30 minutes, 1 hour, or 2 hours.
  Type	Type of transaction to perform.	Stavax automatically collects based on previous transactions.
  Network	Specific blockchain where the transaction will occur.	Stavax automatically collects based on previous transactions.
  To	Specific wallet address that will be used for the transaction.	Stavax automatically collects based on previous transactions.

• Confirmation: Users have to confirm their selections to activate the pre-authorization.

1. Using Pre-Authorized Transactions

Once the pre-authorization is set, users can execute transactions without needing additional confirmations.

1. Managing Pre-Authorized Transactions

3.1. Viewing Details

Users can view their active pre-authorized transactions by navigating to Settings -> Pre-Authorized Transactions. This page displays a list of dApps that have been pre-authorized.

Click on each dApp to go to the DApp Details page, which displays a list of pre-authorized transactions and their details.

3.2. Terminating Pre-Authorized Transactions

• Terminate individual transactions: go to the DApp Details and toggle the switch for the corresponding transaction to turn it off.

• Terminate all pre-authorized transactions: navigate to the Pre-Authorized Transactions page and click the "Terminate All" button to simultaneously cancel all pre-authorized transactions.

Once terminated, the transaction process will revert to the traditional flow, requiring users to open Stavax and confirm transactions manually as they did before.

3.3. Re-Enabling Pre-Authorized Transaction

While the pre-authorized transactions are still within the set timeframe, you can re-enable a terminated transaction by navigating to the dApp details and toggling the switch for the corresponding transaction to turn it back on.

Benefits of Pre-Authorized Transaction

• Frictionless UX in Web3: By reducing the need for constant transaction confirmations, pre-authorized transactions provide a smoother, more immersive experience, similar to the seamless flow of Web2 applications.

• Balance of Security and Convenience: Granting auto-signing permissions poses security risks, but the potential impact is minimized to the user-defined timeframe and transaction value. Additionally, users have full control to set these limits, ensuring that the scope of any potential breach remains within the boundaries they've established, offering a blend of convenience and security.

Overall, we believe that pre-authorization represents a significant breakthrough in enhancing user experience within decentralized applications. This plays a crucial role in helping Stavax fulfill its mission of improving the Web3 experience and expanding the adoption of Web3 products to a broader user base.