# ERC-223

> ERC-223 is an Ethereum-based token standard, an upgrade of ERC-20, allowing secure token transfers into digital wallets and solving the ERC-20 bug.

- Canonical URL: https://iq.wiki/wiki/erc-223
- Categories: Glossary
- Created: 2023-08-10T10:40:03.172Z
- Last updated: 2026-06-02T15:27:24.608Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**ERC-223** (Ethereum Request for Comment) is an [Ethereum](https://iq.wiki/wiki/ethereum)-based token standard powered by [smart contracts](https://iq.wiki/wiki/smart-contract). It allows secure transfer of tokens into a digital wallet. [\[1\]](#cite-id-rqi2t89rxoj)\


# Overview

ERC-223 is a protocol upgrade for the [ERC-20](https://iq.wiki/wiki/erc-20) protocol created by an [Ethereum](https://iq.wiki/wiki/ethereum) developer identified on Reddit as “Dexaran” as a remedy to the ERC-20 bug. [\[1\]](#cite-id-rqi2t89rxoj)[\[2\]](#cite-id-rj61ixxn5oi)

An [ERC-20](https://iq.wiki/wiki/erc-20) bug enabled coins to be lost when users accidentally sent tokens to a[ smart contract ](https://iq.wiki/wiki/smart-contract)using the same mechanism they would use to transfer tokens to a conventional wallet. This has resulted in the loss of more than $3 million in ERC-20 tokens. [\[2\]](#cite-id-rj61ixxn5oi)

ERC-223’s architecture addresses this problem by allowing users to move tokens to smart contracts and wallets that provide the same purpose. While resolving the aforementioned problems, ERC-223 keeps all of the original functionality. [\[2\]](#cite-id-rj61ixxn5oi)

The transfer function checks if the destination address is a smart contract and returns tokens to the sender's account using the smart contract’s token `Fallback` function if it is, ensuring no token loss. [\[2\]](#cite-id-rj61ixxn5oi)

## ERC-223 Utility

The ERC-223 token is powered by automated smart contracts that ensure transparent user transaction details. The ERC-223 token development platform offers investors instant liquidity and high ROI as passive income. Additionally, it allows tokens to be deposited into a contract in a single transaction, preventing additional [blockchain](https://iq.wiki/wiki/blockchain) bloat. [\[1\]](#cite-id-rqi2t89rxoj)[\[2\]](#cite-id-rj61ixxn5oi)

The ERC 223 token creation platform has multi-level security features including HTTP authentication, end-to-end encryption, and escrow protection to prevent hacking. [\[1\]](#cite-id-rqi2t89rxoj)

# Technology

ERC223 tokens should be sent by calling the `transfer` function on token contract with no difference if the receiver is a contract or a wallet address.

* If the receiver is a wallet, an ERC223 token transfer will be identical to an [ERC20](https://iq.wiki/wiki/erc-20) transfer.
* If the receiver is a contract, the ERC223 token contract will try to call the `tokenReceived ` function on the receiver contract. If there is no `tokenReceived` function on the receiver contract, the transaction will fail. [\[3\]](#cite-id-ca4og87vhwn)