ERC-20 vs ERC-223

CornerRight 2 min


Icons/Position/Pos. No. 4

Cryptocurrency


Icons/Technology/Tech No.1

AI

“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.

If you are looking for more information on Smart Contracts, check our previous blog post:
>> 5 Essential 4soft Articles On Smart Contracts

ERC-223 standard

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.

Interested in Ethereum development? Take a look at another Ethereum standard:
>> ERC-721 Ethereum Standard – What Is It For?

Similar blog posts

10 Common Software Architecture Patterns: Expert Guide

8 min

Did you know that before starting a software development project, an architect needs to pick the software architecture for it? This is a common best practice in the tech industry that allows teams to make the most out of the software and create a better experience for users.

Wed/Mar/2022
see details

12 Interesting Blogs on Blockchain & Cryptocurrencies

3 min

It’s not easy to find a reliable and friendly source of information on blockchain technology. To help you reach some of the best, we’ve aggregated the top blogs related to the topic, which can extend your view on blockchain & cryptocurrencies.

Thu/Jun/2018
see details

4soft Use Cases: Blockchain In E-Commerce

4 min

E-Commerce thrives. Online sales steadily grow by about 20% every year. To sustain this growth, online shops leverage every possible technology that helps them to be more efficient and get ahead of the competition to sell more, faster and at better prices.

Tue/Feb/2020
see details

4soft Use Cases: Blockchain in Finance

4 min

For most people, first Blockchain appliance that comes to their mind is Bitcoin – the cryptocurrency, a digital coin that allows for transferring value between the users over the internet.

Mon/Sep/2010
see details