“Good is the enemy of great.” While ERC-20 Ethereum is a widely accepted standard in exchanges, providing firm background for communication with tokens, it still leaves room for improvements.
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ERC-223 is a proposition that solves 3 primary problems with the previous standard:
- It eliminates the problem of sending tokens to contracts, that cannot handle it. In short – it can potentially save thousands of dollars, mistakenly transferred to the wrong addresses. It prevents them from being accidentally lost (or, if you prefer, frozen).
- It gives developers the ability to handle incoming transactions. Their smart contract can, for example, reject non-supported tokens.
- The transaction costs are two times cheaper. Instead of processing approve and transferFrom requests (in fact, two different processes), it introduces a simplified version with only one step – a single transaction. It saves energy and gas.
The new tokens are backwards compatible. It means that they can work with old smart contracts and services created for ERC-20.
Why use ERC-223?
In practice, the new standards most useful feature is cutting the costs in half. Its efficiency saves your money and helps to achieve scalable blockchain network, reducing extensive buzz.
The problem of token lockdown is also a severe one. At the moment, Ethereum has over $72000 worth of tokens mistakenly frozen in the Smart Contracts. ERC-223 protects your tokens from sharing the same fate.
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