Major Difference Between ERC20 and ERC223

ERC20 is as of now existing token standard utilized by ethereum tokens. ERC223 is another adaptation of token standard. 

Issues:

You can't store ether in get that isn't indicated to acknowledge ether stores. For instance you can't store ETC in dao-withdrawal contract. In any case, you can send your ERC20 tokens anyplace so you can store BitEtherCoin in dao-withdrawal contract where your BEC will stay perpetually as dao-withdrawal contract isn't intended to work with BEC and there will be no real way to get to BEC on this agreement. ERC223 tokens can't be sent to an irregular contract also to ether. Just contract indicated with ERC223 stores will acknowledge ERC223 tokens. 

Transactions:

Exchanges between addresses are same in ERC20 and ERC223. When you have to store your ERC20 token in contract you should call endorsement work in token contract to support a predetermined (amount*token decimals) to be exchanged from your deliver to target contract. At that point you have to call store work on target contract to settle your store and exchange your tokens. Note: If you unintentionally sent your ERC20 tokens to target contract without calling endorsement your tokens would be lost! 

Connection amongst ERC223 and different contracts is considerably less demanding. You require just to send your ERC223 tokens to contract address like you send them to another wallet. There is no distinction for client to send ERC223 to contract or to address. 

100% Backward similarity:

ERC223 underpins all ERC20 capacities and can likewise be exchanged by means of endorsement technique. 

Optimization: 

Truth be told exchange of ERC20 tokens amongst address and contract is a couple of two unique exchanges while exchange of ERC223 tokens is a solitary exchange. ERC20 tokens exchange to contract fires Approval occasion on token contract and after that flames Transfer occasion on contract getting tokens. ERC223 tokens exchange fires just Transfer occasion and can forestall additional blockchain swelling as each occasion is put away in blockchain.

3 Primary enhancements with ERC223: 

(1) Eliminates the issue of lost tokens which occurs amid the exchange of ERC20 tokens to an agreement (when individuals erroneously utilize the directions for sending tokens to a wallet). ERC223 empowers customers to send their tokens to either wallet or contract with a comparable limit trade, as needs be wiping out the potential for confuse and lost tokens.

(2) Allows engineers to deal with approaching token exchanges, and reject non-bolstered tokens (unrealistic with ERC20) 

(3) Energy savings. The trading of ERC223 tokens to an understanding is a one phase process rather than 2 organize process (for ERC20), and this suggests 2 times less gas and no extra blockchain swelling.

Changing from ERC20 to ERC223: 

"ERC23 tokens are in reverse good with ERC20 tokens. It implies that ERC23 underpins each ERC20 capacities and contracts or administrations working with ERC20 tokens will work with ERC23 tokens effectively."

Sources: https://github.com/Dexaran/ERC23-tokens/tree/Recommended#erc23-token-standard(ERC23 and 223 are the same thing). To read the full discussion about ERC20 and ERC223, follow this link: https://github.com/ethereum/EIPs/issues/223

Thanks,