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

1. Token Recovery: Prevents accidental loss of tokens sent to incompatible contracts.

2. Gas Efficiency: Aims to reduce the number of transactions required for token transfers.

3. Backward Compatibility: Designed to be compatible with existing ERC-20 wallets and exchanges.

4. Single Transaction Transfers: Combines approval and transfer into a single transaction.

5. Enhanced Security: Adds an extra layer of protection against unintended token transfers.

How It Works

1. tokenFallback Function: Introduces a new function that must be implemented by receiving contracts.

2. Transfer Mechanism: Uses a single function call for both contract and regular address transfers.

3. Contract Detection: Automatically detects if the recipient is a contract or a regular address.

4. Rejection Capability: Allows contracts to reject incoming tokens if they're not designed to handle them.

Advantages Over ERC-20

1. Prevents Token Loss: Addresses the issue of tokens being stuck in contracts.

2. Simplified Transfers: Reduces the complexity of token transfer process.

3. Improved User Experience: Lowers the risk of user errors in token transfers.

4. Potential Gas Savings: May result in lower transaction costs in some scenarios.

Challenges and Limitations

1. Limited Adoption: Not as widely adopted as ERC-20.

2. Implementation Complexity: Requires changes to existing contract structures.

3. Compatibility Issues: May not be fully compatible with all existing ERC-20 infrastructure.

4. 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.