Update the platform to support ERC-223 Standard


Consider supporting ERC-223 token standard and operating with ERC-223 tokens.

The main problem of ERC-20 tokens

The standard lacks “transaction handling model” - transactions of ERC-20 tokens can’t be recognized by the recipient.

As the result, any ERC-20 token can get lost in a contract that failed to recognize an incoming ERC-20 transaction.

On 27 Dec, 2017 there were about $3,000,000 lost: ERC223 token standard · Issue #223 · ethereum/EIPs · GitHub

Today there are more than $20,000,000 lost and this number continues to grow.


Recently a campaign to rescue ERC-20 tokens was launched: https://twitter.com/AaveAave/status/1633126370166575104

However, this is just a temporary solution and ERC-20 tokens will get stuck in contracts again.

The ERC-20 standard is old and it was developed when the token infrastructure was not that big and tokens rarely needed to interact with other contracts. Now it changed.

Please, take a look at the article describing the well-known ERC-20 problems.

ERC-223 ecosystem

ERC-223 token standard solves the issue of stuck tokens and introduces a “communication model”. It is worth noting that ERC-721 transferring mechanism is completely based on ERC-223.

Right now almost all tokens on Ethereum mainnet are ERC-20 and I understand that it will not change overnight. I am working on ERC-20-to-223 Wrapper contract. The contract will allow to create an “upgraded version” for each ERC-20 token and allow holders of ERC-20 tokens to exchange their tokens for ERC-223 tokens at any moment. The ERC-223 tokens will be backed 1:1 by the original ERC-20 that will stay in the contract until a user wants to swap ERC-223 back to ERC-20.

Since the contract will allow to seamlessly swap between ERC-20 and ERC-223 tokens it will be a good idea to convince the users to start using the ERC-223 “version” of the tokens and “upgrade to new standard” to avoid the issues with ERC-20.

There is another advantage of ERC-223 that should be taken into account: it does not require approvals at all. ERC-223 tokens can be transferred to contract in just one transaction. In some cases it is more GAS efficient than approve+transferFrom pattern.

And it is more secure to operate with tokens without approving the contract to withdraw all your tokens should it want to.


It would be nice if erc223 gets more traction in the industry
Lost money is what we certainly dont need