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LABS
Glossary

Credential Delegation

Credential delegation is the authorized act of a holder granting another entity the temporary or conditional right to present one or more of their verifiable credentials.
Chainscore © 2026
definition
AUTHENTICATION & AUTHORIZATION

What is Credential Delegation?

Credential delegation is a security mechanism that allows one entity to grant a limited set of its access rights to another entity, without sharing its primary secret keys.

In technical terms, credential delegation is the process where a principal (the delegator) authorizes a second party (the delegatee) to act on its behalf for a specific scope and duration. This is achieved by issuing a derived, time-bound, and scope-limited credential, such as a delegated authentication token or a capability-based key. This mechanism is fundamental to secure, scalable architectures, preventing the need to share root credentials like private keys or passwords, which would create a significant security risk and audit trail opacity.

The core models of delegation are impersonation, where the delegatee fully assumes the delegator's identity, and constrained delegation, where permissions are explicitly scoped. In web and API contexts, standards like OAuth 2.0 and OpenID Connect formalize this through scopes and access tokens. In blockchain and decentralized systems, delegation is often implemented via smart contracts or signed messages, allowing a wallet to delegate voting power, staking rights, or asset management capabilities to another address without transferring custody.

Key security considerations include the principle of least privilege, ensuring delegated rights are minimal for the task, and revocability, the ability for the delegator to instantly withdraw granted permissions. Audit trails must clearly distinguish actions taken by a delegatee from those of the original principal. Without proper constraints, credential delegation can become an attack vector, as seen in Golden Ticket attacks in Kerberos or overly permissive cloud IAM roles.

A common example is a user (delegator) granting a mobile app (delegatee) access to their Google Drive files via an OAuth token scoped only to a specific folder. In DeFi, a user might delegate the management of their liquidity pool positions to a specialized smart contract, granting it permission to harvest rewards and reinvest them, but not to withdraw the underlying capital. These patterns enable composability and specialized service provision while maintaining user sovereignty over core assets.

key-features
MECHANICAL PROPERTIES

Key Features of Credential Delegation

Credential delegation is a cryptographic mechanism that allows a primary account (delegator) to grant a secondary account (delegatee) the authority to perform specific on-chain actions on its behalf, without transferring the underlying assets or private keys.

01

Non-Custodial Delegation

The delegator retains full control of their private keys and assets. The delegatee is granted a time-bound, revocable permission to act, which is enforced by smart contract logic. This is fundamentally different from transferring ownership or custody.

02

Granular Permission Scopes

Delegation is not all-or-nothing. Permissions can be scoped to specific actions, such as:

  • Staking/Voting: Delegating voting power in a DAO or staking rights.
  • Asset Management: Allowing a bot to execute trades up to a specified limit.
  • Gas Sponsorship: Letting a relayer pay transaction fees for a user's actions via gasless transactions.
  • Access Control: Granting temporary entry to a gated service.
03

Smart Contract Enforcement

The rules of delegation are codified in a smart contract (e.g., an ERC-20 permit or a custom delegation contract). This contract validates the delegatee's signed message against the delegator's on-chain approval before executing any action, ensuring programmatic compliance with the agreed terms.

04

Signature-Based Authorization (ERC-2612/ERC-1271)

A core technical implementation uses off-chain signatures. The delegator signs a structured message (EIP-712) approving a specific action. The delegatee submits this signature to the contract, which verifies it without requiring the delegator to send a transaction themselves, enabling meta-transactions and improved UX.

05

Revocability & Expiry

Delegated authority is not permanent. It can be designed with built-in expiry timestamps or be explicitly revoked at any time by the delegator submitting a transaction to the smart contract. This creates a secure, low-trust framework for temporary collaborations.

06

Composability & Account Abstraction

Credential delegation is a foundational primitive for account abstraction (ERC-4337) and smart accounts. It allows session keys for gaming dApps, bundled transactions from relayers, and complex multi-signature policies, enabling more flexible and user-friendly wallet experiences.

how-it-works
MECHANISM

How Credential Delegation Works

A technical breakdown of the cryptographic process that allows one entity to act on behalf of another in a verifiable and controlled manner.

Credential delegation is a cryptographic protocol that enables a delegator (the original credential holder) to grant a delegatee (a third party) the authority to use a specific credential or claim without transferring the underlying private key. This is achieved by the delegator issuing a delegation token or attestation, which is a verifiable, tamper-proof statement signed by the delegator's private key. The token explicitly defines the scope of the delegated authority, including what actions are permitted, which resources can be accessed, and the duration of the delegation. This mechanism is foundational for building scalable and secure trust relationships in decentralized systems.

The process relies on verifiable credentials and digital signatures to ensure integrity and non-repudiation. A common implementation uses a signed JWT (JSON Web Token) or a W3C Verifiable Credential as the delegation token. The token's payload contains the delegation policy, specifying constraints like exp (expiration time), aud (intended audience/verifier), and custom authorization scopes. The verifier, often a smart contract or a service provider, can cryptographically verify the token's signature against the delegator's known public key and then validate the policy to authorize the delegatee's request. This creates a trust chain from the original issuer to the final verifier.

In blockchain and Web3 contexts, credential delegation enables key use cases such as gasless transactions, where a user delegates a dApp or relayer to submit transactions on their behalf, and subsidized operations, where a project pays for user interactions. It is also critical for oracle delegation in proof-of-stake networks, where token holders delegate staking rights to validators. The security model hinges on the principle of least privilege, where the delegation token grants only the minimum necessary permissions, significantly reducing the risk if the delegatee is compromised compared to sharing a private key.

common-use-cases
CREDENTIAL DELEGATION

Common Use Cases & Examples

Credential delegation enables a trusted third party to act on behalf of a credential holder, unlocking powerful workflows for automation, security, and access management.

03

Role-Based Access Control (RBAC)

In enterprise or protocol settings, a central authority can issue role credentials (e.g., 'Admin', 'Auditor') and delegate them to employees or smart contracts. This creates a clear, verifiable chain of authority.

  • Use Case: A smart contract managing a treasury only executes withdrawals if the transaction is signed by a wallet holding a delegated 'Treasurer' credential.
  • Advantage: Provides granular, auditable access control that is cryptographically enforced.
04

Session Keys for Gaming & dApps

Users can delegate limited permissions to a session key for a specific application and time period. This enhances security and user experience.

  • How it works: A player delegates a credential allowing a game client to perform specific actions (like moving an in-game asset) for one session, without exposing their main wallet's private key.
  • Result: Reduces friction and risk for interactive dApps, as users don't need to sign every minor transaction.
05

Cross-Chain Identity & Attestations

Credentials issued on one blockchain (e.g., a proof-of-personhood attestation) can be delegated for use on another chain via bridges or interoperability protocols.

  • Flow: User holds a credential on Chain A. They generate a delegation proof, which is relayed and verified on Chain B.
  • Impact: Enables portable reputation and identity, allowing users to leverage their established credentials across the entire ecosystem.
security-considerations
CREDENTIAL DELEGATION

Security & Trust Considerations

Credential delegation introduces specific security trade-offs by allowing third parties to act on a user's behalf. This section details the core mechanisms, risks, and mitigations.

01

The Delegation Smart Contract

The core security mechanism is a smart contract that defines the rules of delegation. It specifies:

  • Delegated Permissions: What specific actions (e.g., stake, vote, claim rewards) the delegate can perform.
  • Limits: Maximum amounts, time-bound validity periods, or specific target contracts.
  • Revocation Logic: How the delegator can instantly revoke the delegation, typically by calling a function on the contract. This contract-centric model replaces traditional API keys with on-chain, programmable rules.
02

Principal-Agent Risk

This is the fundamental risk where the delegate (agent) acts against the interests of the delegator (principal). Key concerns include:

  • Slashing Risk: In Proof-of-Stake networks, a malicious or incompetent delegate can get the delegator's staked funds slashed (penalized).
  • Vote Manipulation: Delegated voting power can be used to support proposals that harm the network or benefit the delegate.
  • Opportunistic Behavior: The delegate may prioritize transaction ordering (e.g., MEV extraction) for their own profit, potentially at the delegator's expense. Trust in the delegate's integrity and competence is paramount.
03

Revocation & Key Management

A secure delegation system must allow the delegator to regain control. Critical aspects are:

  • Instant vs. Time-Delayed Revocation: Most systems allow instant revocation via a transaction from the delegator's primary key. Some implement a time-lock for safety.
  • Key Compromise: If the delegator's private key is lost or stolen, the attacker can revoke legitimate delegations or create malicious ones. This highlights the need for secure key storage (hardware wallets, multisig).
  • Evolving Standards: Solutions like EIP-3074 (Ethereum) aim to allow delegation without transferring asset custody, reducing risk.
04

Transparency & Auditability

Blockchain's inherent transparency is a major security feature for delegation.

  • On-Chain Record: All delegation grants, actions taken by delegates, and revocations are recorded on the public ledger. This allows for real-time auditing by anyone.
  • Reputation Systems: Delegators can review a delegate's historical performance, slashing record, and voting history before delegating. Projects like Gitcoin Passport use decentralized identifiers (DIDs) and verifiable credentials to build on-chain reputation.
  • Monitoring Tools: Services like Chainscore provide analytics on delegate behavior and system health, enabling informed trust decisions.
05

Smart Contract Risk

The delegation logic itself is only as secure as the code that defines it.

  • Code Vulnerabilities: Bugs or exploits in the delegation contract could lead to unauthorized access, frozen funds, or theft. This necessitates rigorous audits and formal verification.
  • Upgradeability Risks: If the contract is upgradeable, the upgrade mechanism becomes a central point of trust. A malicious upgrade could alter delegation terms.
  • Integration Risk: The contract must safely interact with other protocols (e.g., staking pools, DAOs). Vulnerabilities in integrated contracts can cascade.
06

Example: Staking Delegation

A concrete example is delegating staking rights in a Delegated Proof-of-Stake (DPoS) network like Cosmos.

  • Mechanism: Token holders (delegators) delegate tokens to validators (delegates) who run nodes. The delegator's tokens are bonded and can be slashed.
  • Security Trade-off: The delegator earns rewards but cedes control over validation behavior. They trust the validator to maintain high uptime and avoid double-signing.
  • Mitigations: Delegators can spread stakes across multiple validators (diversification) and use monitoring tools to track validator performance and commission rates.
COMPARISON

Credential Delegation vs. Related Concepts

A technical comparison of credential delegation with related authorization and identity management patterns.

Feature / MechanismCredential DelegationOAuth 2.0 Token DelegationAccount Abstraction (ERC-4337)Multi-Signature (Multi-Sig)

Core Purpose

Delegates authority to perform specific on-chain actions.

Delegates access to off-chain APIs and resources.

Decouples transaction initiation and payment from a single key.

Requires multiple approvals for a single transaction.

Authorization Scope

Granular, smart contract-defined permissions.

Broad, resource server-defined scopes (e.g., 'read:user').

User operation defined by a smart contract wallet.

Binary approval for the entire transaction.

On-Chain/Off-Chain

Primarily on-chain authorization logic.

Primarily off-chain authorization protocol.

On-chain user operations with off-chain infrastructure.

On-chain signature verification.

Revocation Model

Explicit revocation via on-chain transaction or expiry.

Token revocation by authorization server.

Key rotation or social recovery via smart contract.

Change in signer set required.

Typical Use Case

Automated DeFi strategies, gasless transactions.

Log in with Google, app access to user data.

Sponsored transactions, session keys, social recovery.

Treasury management, DAO governance.

Trust Assumption

Trust in the logic of the delegating smart contract.

Trust in the central authorization server.

Trust in the smart contract wallet's verification logic.

Trust distributed among signers.

Key Management

Delegator's key signs delegation; delegatee uses its own key.

Resource owner authenticates once; client uses access token.

User can use any auth method; a bundler pays gas.

Multiple private keys or hardware devices.

technical-implementation
TECHNICAL IMPLEMENTATION & STANDARDS

Credential Delegation

A technical overview of the mechanisms and standards enabling secure, temporary transfer of authorization rights in decentralized systems.

Credential delegation is a cryptographic mechanism that allows a primary entity (the delegator) to grant a subset of its access rights or permissions to another entity (the delegatee) without sharing its primary private key. This is a core capability for enabling scalable and secure interactions in decentralized identity (DID) and access control systems, allowing for temporary, auditable, and revocable transfers of authority. Unlike simple key sharing, delegation preserves the principle of least privilege and maintains a verifiable chain of custody for actions performed by the delegatee.

The technical implementation of delegation relies on creating a verifiable credential or a signed authorization token that cryptographically binds specific permissions to the delegatee's identifier. Common standards include W3C Verifiable Credentials for semantic expression of delegated claims and OAuth 2.0 Token Exchange (RFC 8693) for token-based delegation in API contexts. In blockchain environments, this is often achieved through signed EIP-712 structured messages or smart contracts that act as policy registries, where the delegator's signature on a delegation statement serves as unforgeable proof of consent.

A critical design pattern is the delegation chain, where a delegatee may further delegate permissions, creating a verifiable lineage of authority. Managing this requires robust revocation mechanisms, such as checking real-time revocation registries (e.g., using a revocation list or a smart contract's state) or issuing short-lived credentials to limit exposure. Selective disclosure techniques allow the delegatee to prove only the specific, delegated attributes necessary for a transaction, enhancing privacy and minimizing data leakage.

Practical applications are widespread: a user delegating gasless transaction signing to a relayer via EIP-2612 permits, a DAO member delegating their voting power to a representative, or an IoT device delegating sensor data access to a processing service. Each case separates the ownership of an identity or asset from the temporary right to act on its behalf, which is essential for composable and user-centric systems. The security model hinges on the verifiability of the delegation attestation and the delegatee's ability to produce a valid proof for a verifier.

Future developments focus on interoperable delegation protocols across different blockchain networks and legacy systems, as well as zero-knowledge proofs for privacy-preserving delegation where the delegator's identity and the full scope of permissions can remain hidden. As systems grow more modular, credential delegation standards provide the foundational layer for secure agent-based architectures and automated workflows in Web3, ensuring authority can flow as needed without compromising security or user sovereignty.

CREDENTIAL DELEGATION

Frequently Asked Questions (FAQ)

Common questions about delegating authority for blockchain interactions, including wallet management, staking, and smart contract permissions.

Credential delegation is the cryptographic process of granting a third-party application or service temporary, limited authority to perform specific actions on behalf of a user's wallet or account, without transferring the private keys. It works by signing a structured message, like an EIP-712 typed data payload, that explicitly defines the permissions (e.g., token spending limits, contract interactions) and validity period. This signed delegation credential is then used by the delegated service to execute the approved actions, while the user retains ultimate control and can revoke the delegation. This is a core mechanism behind gasless transactions, staking pools, and automated DeFi strategies.

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