Since its introduction in 2015, Ethereum has become one of the most popular digital assets and blockchains available. In fact, the network co-founded by Vitalik Buterin has established itself as his second most prominent cryptocurrency on the market. However, for those new to Ethereum and the industry, there is a lot to learn. In this guide, we will specifically answer what an Ethereum (ETH) write address is.
Like many digital assets, Ethereum exists within an ecosystem and requires a write address to remove some of its native tokens from the circulating supply. Different assets can take different approaches to supply management problems. However, despite the differences in approach, the overall process does not become less important.
The write process in Ethereum is a procedure that confirms ETH sent to one address that is removed from circulation. This null address is a unique location, and any assets sent to it will be written to. Furthermore, they are unique in that they exist independently of anyone and serve the irreversible purpose of removing both ETH and ERC-20 from the market.
This development is good for the entire ecosystem as well as for all assets. As an example, in the case of Bitcoin, the overall supply decreases through a halving event. This happens every four years and cuts the overall supply of BTC in half.
In the case of Ethereum, combustion is a way to maintain supply and thus increase the overall value of the price over time. Next, without further ado, let’s find out where the Ethereum (ETH) write address is and what are some interesting aspects of ETH writing.
Where is the ETH write address?
Also read: Ethereum shows steady growth.ETH could reach $3,000 on this breakout
For the Ethereum blockchain, the Ethereum (ETH) write address is specifically designated as 0x0000000000000000000000000000000000000000 and is where ETH and other Ethereum-based tokens are sent for permanent deletion. This process is called “burning” and is employed by a wide variety of assets currently on the market.
The important thing about ETH writes is that there is no private key in the address. This means that tokens sent to this address cannot be retrieved. There is no way to access them or transact to another wallet again. Therefore, the conclusion of the transaction to the write address will be the decimation of her sent ETH or ERC-20 tokens.
Also read: Ethereum (ETH) Valentine’s Day Price Prediction
According to Etherscan, the aforementioned null address currently contains over 13,300 ETH. Additionally, these tokens represent a value of over $34 million for him since the null address became active. This shows that some of his ETH has been sent to burn addresses since his debut in 2015, which is pretty remarkable. Since then, the overall value of the token has increased significantly.
Although the process of burning ETH has existed since the beginning, new developments in the ETH ecosystem have come to fruition in 2021. This changed the way Ethereum functions as a network, resulting in a significant change in the amount of ETH burned.
What is EIP-1559?
Also read: Ethereum (ETH) could rise 1000% to $27,000: experts predict
Specifically, this change was made through the implementation of Ethereum Improvement Proposal (EIP) 1559. This proposal came true for the first time in his 2021 year and brought a new mechanism to support the burning of ETH.
All transactions that occur on the Ethereum blockchain require payment of gas fees. This is a number developed through an algorithm that takes data from network activity and volume. What EIP-1559 does is take that base charge and send it to a null address and burn it.
This integration does several important things that will benefit the Ethereum ecosystem in the long term. First, it increases the predictability of Ethereum fees. So we’re trying to reduce the fees that have been high in the past. Second, this proposal will strengthen the deflationary basis of assets. Therefore, it helps to ensure that the asset retains its value over time.