What is a Whitelist?
Essentially, a whitelist is a list of individuals that have been granted permissions by the host, usually to partake in a specific event or occurrence. Whitelisting is a commonly used term in cybersecurity, but also has its different meanings in the cryptocurrency and NFT space too.
In the aforementioned cryptocurrency and NFT space, a whitelist would entail limiting your trading by restricting which wallet address can trade with you. This limitation would have to be specified on one party’s end and thus would be referred to as their whitelist.
For example, a whitelist can be used to allow individuals to participate in the IDO sale of a token or permit individuals to enter an airdrop via a giveaway or similar means.
Why are they used?
Whitelists can be used for a few reasons, from the original security purpose of allowing verified addresses only to interact with you, to giveaways and driving community interaction.
Being added to a whitelist can be a good incentive for a user base, especially if there’s a limit on the amount of winners or participants as the reward is guaranteed to be greater, following the economic principle of less supply, more demand.
How do you become whitelisted?
As mentioned above, one of the main ways that you can be whitelisted for an IDO or similar event is through competing in, and winning a giveaway.
You could also be whitelisted by doing something as simple as completing a registration form. Whether it be a verification process or a competition, whitelists can vary from project to project.