CRYPTOMARKET

The Rise of ERC-223

  • by Ismail Malik
  • July 5, 2017
  • 0
Ethereum ERC-223

The future of ICOs on Ethereum ERC-223

“It´s not the strongest of the species that survive, nor the most intelligent. It’s the one that is most adaptable to change” – Charles Darwin

ERC-223 improves ICO interactions.

We already face a coexistence of the ERC-20 token and the ERC-223 token on the Ethereum chain.

Despite that projects are built with ERC-20, the ERC-223 already shows it´s high potential to be the next, more secure and flexible replacement thanks to its agile and fast compatibility.

But how does it work?

Being backward compatible with ERC-20, ERC-223 supports all ERC-20 functions and contracts. All services working with ERC-20, work with ERC-223 correctly.

“Pursuing perfection”

ERC-223 improves the ICO process. There are two major problems with the ERC-20 token standard: The lack of handling of ERC-20 token transfers and “re-approval attack”. And the blockchain bloating transfer, a 2-step process of transactions to send ERC-20 tokens into a contract.

ERC-223 solves these problems while raising efficiency.

The transfer is a just single transaction – 2 times more efficient – consuming less gas.

No more lost tokens during the transfer of ERC-20 tokens to a contract, ERC-223 allows users to send their tokens to either wallet or contract with the same function transfer.

“ERC-223 vs. ERC-20 – ERC-223 improves ICO transactions and takes over, in terms of functionality, going into the future”.

Looking at the leveraging of the ERC-223 token for an ICO, there are three topics of paramount importance to be regarded:

  • The right fallback function, using three parameters.
  • Upgradeable contracts. ERC-223 offers the solution to upgrade to a new standard.
  • The ability to separate your contracts state from its logic, divided into three parts: “token-frontend”, “token-DB” and “token-logic”.

The “token-frontend” should execute the functions of the “token-logic” contract using a ´delegatecall´.

If there is a need to upgrade a contract, only the “token-logic” should be re-deployed and connected with a “token-frontend” contract.

With ERC-223 this can be done without any requirement of updating 3rd party services or contracts that store balances.

“…users still lose money because of using the ERC-20 token standard.”

Many ICOs are still launched on ERC-20.

We can build upgradeable contracts with ERC-223 now to avoid problems.

Hire a talented auditor and then launch a bug bounty.

Key contributors to keep an eye on: Dexaran Derat, Jorge Izquierde,Fabian Vogelsteller.

“when will you switch?”

 

Photo credit © Shutterstock

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Ismail Malik is Editor in Chief ICO Crowd Magazine.