- Permission Delegation was “born out of the need to manage a treasury.”
- The new functionality will redefine how institutions manage their XRP portfolios.
- Each delegator can have no more than 10 hard-coded, granular permissions.
A prominent XRPL validator identified as Vet on X has described the protocol’s new functionality, Permission Delegation, as a necessary tool for the ecosystem. In his latest post on X, Vet said the new feature was “born out of the need to manage a treasury.”
The XRPL Permission Delegation is a security feature coming to the XRPL to allow account owners, also known as delegators, to authorize another account, a delegate, to perform specific functions on their behalf. It is a mechanism that enables institutional role-based access control without requiring the delegator to share their master private keys.
As of writing, the underlying network upgrade for the Permission Delegation feature has reached the activation threshold among validators and is on track for a mainnet launch. Based on its design, it would resolve a 2025 bug involving the potential draining of unauthorized fees via unverified signatures.
How Permission Delegation Works
The XRPL Permission Delegation feature workflow relies on standard ledger operations to establish a secure relationship. The execution process begins with the delegator issuing a transaction to explicitly designate a delegate account and outline exactly what they are allowed to do. An on-chain tracking follows, with each relationship creating an entry on the XRPL, which counts toward the delegator’s owner reserve requirement.
The next step involves the delegate executing actions directly from their own account, noting both their address and the delegator’s information. Meanwhile, the delegator retains absolute power and can change or wipe out all permissions at any time with a new transaction.
Key Limitations
It is worth noting that the XRPL Permission Delegation has a few limitations, including a maximum of 10 hard-coded, granular permissions per delegator. It is designed such that a delegate cannot change cryptographic keys, add alternative signers, or pass on permissions to a third party.
Permission on the new feature cannot be narrowed down to specific values, and unlike multi-signing setups, both the delegator and the delegate must be fully funded on-ledger accounts.
A New Milestone for XRPL
In the meantime, the XRP Ledger has surpassed 8 million accounts amid continuous growth. Data from XRP Ledger Services reveal that the total number currently stands at 8,001,658, A figure that Vet described as “A Milestone.”
According to CryptoQuant’s report, Binance’s XRP reserves dropped to their lowest level since February this month, declining to 2.61 billion XRP. It suggests an increased withdrawal of XRP tokens from the world’s largest cryptocurrency exchange by volume.
Related: Ripple Proposes XRPL Lending Protocol for Onchain Credit
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