Attention! Issues of the upcoming Storj migration related to ERC20.

We can read that Storj is going to launch ERC20 tokens on Ethereum in this article.

I want to point out that the ERC20 has multiple issues:

1. People are loosing money using ERC20 tokens. $90000 are already lost at the moment. I wrote an article about it earlier.

2. approve and transferFrom mechanism is potentially insecure. Possible attack is described here.

3. ERC20 tokens have problems interacting with other contracts.

The most important problem is the loss of money.

The transfer function can be executed without handling by the receiver. The most common mistake is that users throw their tokens in contracts, but contracts can not recognize incoming transactions. This leads to the fact that the tokens are stuck inside contracts.

I have already developed an alternative ERC 223 token standard which solves these issues.

There is a possibility to build ERC223 tokens that will match ERC20 interface also.

If StorJ will not change ERC20 token standard then a mechanism to extract accidentally sent tokens from StorJ-token contract itself should be implemented.

It is also recommended to implement a mechanism for extracting tokens from any other contract because tokens can be sent everywhere via the transfer function without handling by the recipient.