You must have heard of the ERC20 Token Standard, but do you know what ERC223 Tokens are? This is the perfect guide to deepen your understanding of the newer and better ERD223 Token Standard.
What is ERC223 Token Standard?
The ERC223 Token Standard is just like the ERC20, only it is the newer and improved version of its alternative. If you are wondering which the Top Wallets For ERC 20 Tokens are, do read our article on the same.
Explaining ERC223 further, the token has to have some functions and standards in its code on the Ethereum Blockchain network to satisfy the requirements of the ERC223 Token Standard.
ERC223 Tokens live on the Ethereum Blockchain as they do not have any dedicated Blockchain. If you want to transfer ERC223 tokens then it is essential that you have some Ethereum as GAS.
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What are the cons of ERC223 Token?
Here’s why you should consider upgrading to the ERC223 Token Standard!
Often when transferring ERC20 tokens to a contract, many people accidentally use the instructions for transferring the token to a digital wallet and consequently end up losing tokens.
The ERC223 eliminates the chances of lost tokens as it gives users the option to send tokens to either a contract or a wallet with the same function transfer. To understand the 5 Popular Use Cases of Ethereum Smart Contracts, do read our article.
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With the ERC223 tokens if your tokens are not supported then developers can reject them. Hence, the chances of you losing the tokens are minimal as they will be refunded to you. However, you do stand to lose the GAS.
Rather than two steps which are needed for the transfer of ERC20 token, ERC223 tokens can be transferred to a contract in a simple one-step process. Hence, not only do you save on GAS, but you also save on the transaction fee that is paid during the process of token transfer.
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Being backwards compatible with the ERC20 Token Standard, the ERC223 tokens are known to support every function of the ERC20. Hence every service or contract that works with the ERC20 token will work with an improved ERC223 token.
Despite being an improved version of the ERC20 Token Standard, the ERC223 Token Standard’s adoption has not really taken off so far. This might be due to the lack of infrastructure to store them securely. As this infrastructure is developed, we will definitely witness the increased deployment of this improved Token Standard.
If you want to use a wallet that supports the ERC223 then your best bet would be the Trust Wallet, as there are not a lot of options available in the market. We are yet to see a day when hardware wallets such as Ledger Nano S support the ERC223.
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