Ethereum Births New Token Standard, Will This Reduce ETH Supply?
The Ethereum (ETH) blockchain is growing in a remarkable way as a new token standard dubbed the ERC-223 has made its way to Ethereum Documentation.
Insights into ERC-223 Standard and Implications
The initial proposal for the EIP-223 protocol was submitted for approval back in March this year and the importance of this standard hinges on correcting the flaws of earlier standards. The preceding ERC-20 standard has a number of known flaws including the loss of tokens in contracts that are not designed to interact with sent tokens and this is one major error that the ERC-223 is set to address.
Riding on its architecture, the ERC-223 standard is designed as a subset of ERC-20. As described by the Callisto Network;
“It is a step forward towards economic abstraction at the application/contract level, allowing the use of tokens as first-class value transfer assets in the development of smart contracts.”
Unlike the ERC-20, the new token standard is billed a “more secure standard, as it does not allow token transfers to contracts that do not explicitly support token reception.”
The new standard will promote a universal and widespread acceptance as new functionalities will now be enabled on the Ethereum blockchain. As ERC-223 maintains the same standards and compatibility with its predecessor, tokens being bridged into the Ethereum blockchain from other protocols will also work perfectly without the need for tweaks.
As such, the supply of Ethereum will not be adversely impacted with the launch of this new standard.
Blow to Ethereum Killers
The emergence of the ERC-223 standard can serve as a very definitive blow to the so-called Ethereum killers around today. Many of these alternative protocols thrive on the incapacity of the Ethereum Network in some of the key areas of blockchain operations.
Ethereum transitioned from being a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) through The Merge event that went live last year.
The goal of the transition is beyond energy conservation as it also entails scalability, security and general flexibility on the part of the developers. All of these, however, show that Ethereum can evolve and surpass its core challenges, a demarketing realization for tokens dubbed Ethereum killers.
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