Whitelist

A whitelist allows a particular cryptocurrency address to access a specified service.

An approval of your wallet address on the whitelist can be (and often is) required for participation in: an ICO; a NFT pre-sale event; to withdraw funds from a centralized exchange (CEX); or to participate in many other crypto events.

Exchange withdrawal whitelist

On CEXs, there are whitelists where users can select the address of their crypto wallet. As a result, users will be able to withdraw funds only to the addresses they have selected on their whitelists.

It is an additional security measure to prevent an attack on your account. Cryptocurrencies cannot be transferred anywhere other than your wallet if an attacker gains access to your account.

In most cases, adding your address to the whitelist takes one to seven days, depending on the exchange.

IDO, ICO, or NFT whitelist

You must meet the platform's requirements in order to be added to the whitelist.

Typically, this involves promoting the new project on social media or any other number of social media activities.

Additionally, most IDO require the minimum purchase of large amounts of tokens / coins. In this way, rich users are preferred.

When it comes to the ICO event, there is a whitelist of registered and approved participants who, upon having their wallets whitelisted, have exclusive access to the ICO or pre-sale.

A smart contract governs the distribution of tokens/coins to users on the whitelist of the ICO.

The whitelist saves the network and fees

A large project that is launched on any blockchain is likely to attract a large amount of investment.

As a result, there will be a huge increase in the number of purchases, the transaction load on the network will increase tremendously and their fees will skyrocket.

It is possible that the transaction fee exceeds the price of the NFT you wish to mint, for example.

The situation is referred to as a "gas war." In general, the more you pay, the greater the possibility of your transaction being completed before your competitors (this being due to the circumstances of the network, and the bidding required to push ahead of your fellow purchasers).

Using whitelists, this situation is coordinated and the network is not overloaded as much. It is possible to create time windows on the whitelist in order to allow everyone to mint their NFTs without interference.

PROs

• An incentive for active support of the project
• Motivating communities
• An exclusive offer
• Ecosystem stabilization

CONs

• Limited number of receiving addresses
• Rich people are preferred

Conclusion

The whitelist is a security feature used to determine the order in which an NFT or token / coin is purchased. Additionally, it protects your funds on exchanges in the event that your account is hacked.