The traditional process of transferring ERC-20 tokens has presented several challenges like the requirement of ETH for paying gas fees. Additionally, the standard token transfer process involves a rigorous procedure, adding complexity, increasing transaction fees, and delaying interactions with dApps.EIP-2612 (ERC-20 permit) has been established as a standard for performing gasless token transfers, thereby eliminating the need for users to hold ETH for gas. However, it has opened a new avenue for malicious actors to gain access to users’ tokens through sophisticated phishing schemes.This blog aims to delve into the intricacies of EIP-2612, explaining how it works and the risks associated with the permit function.Understanding EIP-2612EIP-2612 introduces a feature called “permit” for ERC-20 tokens. This lets users approve token transactions without making a separate blockchain transaction each time. It uses off-chain signatures, meaning you can give permission away from the blockchain while still keeping it secure. This makes handling ERC-20 tokens easier and cheaper.The permit function lets a token owner sign a message off the blockchain that allows someone else to move a set amount of tokens from the owner’s account. This signature, which is done off the blockchain, includes all the details like how much, to whom, and how long the permission lasts. It makes sure the transaction is safe and clear.