jmc

For the base $b$ representation to have $3$ digits, the largest power of it that is less than or equal to $423$ must be the square of $b$. Therefore, we want to find the smallest number such that the cube of it is greater than $423$. The cube of $7$ is $7^3=343$, and the cube of $8$ is $8^3=512$. Therefore, the smallest integer such that the largest power of $b$ is less than $423$ is the square would be $\boxed{8}$.