ERC-223 Definition
ERC-223 is a token standard on the Ethereum blockchain that is designed to address some of the issues found in the ERC-20 token standard. Specifically, ERC-223 reduces the risk of lost tokens and makes token transactions behave more similar to ether transactions.
ERC-223 Key Points
- ERC-223 is a token standard on the Ethereum blockchain.
- It was designed to address issues in the ERC-20 token standard.
- It reduces the risk of tokens being lost in contract transactions.
- Transactions with ERC-223 tokens are more similar to ether transactions, which can simplify integration with exchanges or wallets.
What is ERC-223?
ERC-223, where ERC stands for Ethereum Request for Comment, is a standard for tokens implemented on the Ethereum blockchain. The number 223 is the unique identification number of the standard. This particular token standard was designed to address some of the flaws found in the ERC-20 standard, ensuring greater security and efficiency within the blockchain.
Why was ERC-223 Created?
ERC-223 was created to solve specific problems associated with the ERC-20 standard, which is considered the predecessor of ERC-223. The most significant issue addressed by ERC-223 is the risk of tokens being lost when they are sent to a contract that does not have the necessary functions to handle them. ERC-223 resolves this by adding a tokenFallback function to contracts, allowing them to reject non-supporting tokens.
When to Use ERC-223?
ERC-223 tokens should be used when sending tokens directly to contracts. Unlike ERC-20, ERC-223 enables users to send tokens to either wallet addresses or contract addresses with the same function, thereby making transactions smoother and more energy efficient. Moreover, it provides a more secure platform by preventing tokens from getting lost in the contract.
Where is ERC-223 Used?
ERC-223 tokens are used across the Ethereum network, effectively serving a multitude of decentralized applications (dApps) that implement this particular token standard. Ethereum-based token generation events or “Initial Coin Offerings” (ICOs) may use the ERC-223 standard for their project tokens. It’s also frequently used in the creation of smart contracts on the Ethereum platform.
How Does ERC-223 Work?
ERC-223 works by using a function to handle incoming token transactions. This function, the tokenFallback function, is triggered when tokens are sent to an incompatible contract or address. If the receiving contract does not include the tokenFallback function, the transaction will fail and all the tokens are returned back to the sender, thereby preventing any potential loss of tokens.
