
Back
ERC-223
What is ERC-223?
ERC-223 is a proposed improvement to the ERC-20 token standard on the Ethereum blockchain. It aims to address some of the limitations and potential issues with ERC-20 tokens, particularly the problem of tokens being lost when sent to contract addresses that are not designed to handle them.
Key Features
Token Recovery: Prevents accidental loss of tokens sent to incompatible contracts.
Gas Efficiency: Aims to reduce the number of transactions required for token transfers.
Backward Compatibility: Designed to be compatible with existing ERC-20 wallets and exchanges.
Single Transaction Transfers: Combines approval and transfer into a single transaction.
Enhanced Security: Adds an extra layer of protection against unintended token transfers.
How It Works
tokenFallback Function: Introduces a new function that must be implemented by receiving contracts.
Transfer Mechanism: Uses a single function call for both contract and regular address transfers.
Contract Detection: Automatically detects if the recipient is a contract or a regular address.
Rejection Capability: Allows contracts to reject incoming tokens if they're not designed to handle them.
Advantages Over ERC-20
Prevents Token Loss: Addresses the issue of tokens being stuck in contracts.
Simplified Transfers: Reduces the complexity of token transfer process.
Improved User Experience: Lowers the risk of user errors in token transfers.
Potential Gas Savings: May result in lower transaction costs in some scenarios.
Challenges and Limitations
Limited Adoption: Not as widely adopted as ERC-20.
Implementation Complexity: Requires changes to existing contract structures.
Compatibility Issues: May not be fully compatible with all existing ERC-20 infrastructure.
Lack of Finalization: The standard has not been fully finalized or widely accepted.
Similar Terms
ERC-20: The original Ethereum token standard that ERC-223 aims to improve.
ERC-777: Another proposed improvement to ERC-20 with some similar goals.
Ethereum: The blockchain platform that EIPs are designed for.
Smart Contract: The underlying technology that enables token standards like ERC-223.