The ERC-223 token standard is an extension of the commonly used ERC-20 protocol. The Ethereum request for comment, ERC-223 token facilitates smart contracts, allowing users to safely transfer tokens to any digital wallet.
Enabling the tokenization standard lead to the simplification of the entire process on the Ethereum blockchain. There are several ways in which the ERC-223 token standard outperforms the ERC-20 tokens.
The ERC-223 tokens work more efficiently while requiring only one step for the transaction as compared to two steps for ERC-20. The ERC-223 also includes a parameter that ensures a smart contract governs the destination address.