What is the ERC223 Token Standard?

Ethereum developers are working on various improvements to bring the ecosystem back to a reliable state. One of the potential upcoming changes is known as ERC223. It is a slightly different Ethereum-based token standard compared to ERC20 and aims to solve issues the ERC20 standard has unwittingly introduced. The bigger question is how many existing tokens will be redeployed using ERC223 in the future.

What is ERC223 Trying to fix in the First Place?

Ever since the ERC20 token standard was introduced, virtually all Ethereum-based tokens successfully embraced this new standard without any issues. It appears the ERC20 standard has no glaring issues, but there are some drawbacks which need to be addressed. This is where the ERC223 standard comes into the picture.

The ERC20 standard suffers from being unable to handle incoming transactions through a receiver contract. That is not the biggest issue in the world, but it is something developers would like to see addressed. However, the bigger issue is how tokens can be sent to a contract not designed to work with such tokens in the first place. If that is the case, the funds could end up getting lost.

This is a more common problem than you may think. A recent Reddit post indicates roughly $400,000 worth of ERC20 tokens is stuck in limbo thanks to being sent to a “wrong” contract. Issues like these pose a big threat to the overall Ethereum ecosystem. Thankfully, it appears ERC223 will be able to take care of that problem as well, assuming the new standard is approved and introduced in the end.

The ERC223 standard would introduce a new function to the existing ERC20 standard to prevent accidental transfers from being fatal. Instead, there would an option to revert such transactions and eventually even block accidental transactions to random contracts altogether. It is a more than welcome solution to keep tokens from getting lost on the Ethereum network, that much is evident.

Assuming the ERC223 standard will become the new norm, all existing token issuers have some tough decisions to make. Converting from ERC20 to ERC223 is not possible through any convenient manner. Instead, all of the ERC20 tokens need to be redeployed under the ERC223 standard. This also means any trading platform listing said tokens will need to update their information and addresses. It will be a painstaking process, which may mean very few existing tokens will effectively be converted to ERC223 in the future.

A “more convenient” process, as pointed out by Alex van de Sande on Reddit, could be new tokens being created, which are backed by a contract holding the old tokens. This may be the most reasonable option for most projects, but only time will tell which of these options will be implemented. It is equally possible we will see some form of a “name resolution” for Ethereum-based tokens in the future. For now there is not an official course of action just yet.

48 Comments

  1. Ravi Bhojwani July 10, 2017
  2. Mbekos July 10, 2017
  3. Ravi Bhojwani July 10, 2017
  4. govind mishra November 7, 2017
  5. Junita Patella December 5, 2020
  6. Elmo Hottell December 9, 2020
  7. zortilo nrel January 15, 2021
  8. 과유불급 January 16, 2021
  9. froleprotrem January 24, 2021
  10. froleprotrem February 2, 2021
  11. House Clearance Cardiff February 9, 2021
  12. rateio premium February 10, 2021
  13. elementor page builder February 12, 2021
  14. preco grama londrina February 13, 2021
  15. Curso de Marketing Digital February 14, 2021
  16. Auto detailing bangor me February 14, 2021
  17. enxoval de bebê barato February 15, 2021
  18. google news February 16, 2021
  19. Asiaklub February 16, 2021
  20. TS911 February 16, 2021
  21. solar panel in malaysia February 17, 2021
  22. assistir series online February 18, 2021
  23. Free Fire Names February 18, 2021
  24. Animes Online February 18, 2021
  25. monte seu banner February 19, 2021
  26. internet hız ölçer February 19, 2021
  27. Kurtis Kirstein February 21, 2021
  28. Seguro de Carro SP February 21, 2021
  29. entretenimento February 21, 2021
  30. Gocengqq February 22, 2021
  31. Công ty alma February 22, 2021
  32. Alma vacation ownership February 22, 2021
  33. AI trends February 23, 2021
  34. air cushion vehilce February 23, 2021
  35. Ghana Music February 23, 2021
  36. maplestory เถื่อน February 24, 2021
  37. Moon Arab chat February 24, 2021
  38. Cars on rent app February 24, 2021
  39. solar panels malaysia February 25, 2021
  40. solar panels malaysia February 25, 2021
  41. 3m water filter February 25, 2021

Leave a Reply