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CRYPTOCURRENCY

Ethereum Burned Nearly US$5.8 Billion.

What is cryptocurrency burning?

Cryptocurrency users are assigned an address used to send and receive coins. For them, these addresses are like an email addresses, which they can access from anywhere.

A cryptocurrency is burned or destroyed when a coin is sent to a wallet address that can only receive coins. These addresses are generally termed as ‘eater’ or ‘burner’ addresses.

Generally, cryptocurrency addressees and wallets have a private key, but, these burner tokens do not have a private key, which means the tokens are gone forever.

Now, what made Ethereum burn US$5.8 billion worth of its own tokens?

If you are thinking Ethereum is just setting a pile of cash on fire and relaxing, then rethink!

Cutting down on the amount of available currency is a part of a multifaceted approach to upgrade the blockchain and cut down the amount of money that crypto miners can earn from each transaction.

The EIP 1559 enabled Ethereum developers to create a new system under which transaction fees that were formerly all paid to miners were split into a base fee and a tip to the miner.

This system prevents miners from entering the network with spam transactions that can eventually raise the minimum fee for others. 

Bottom Line

Even though it might seem like Ethereum might is a good option for investment due to its volatility, it is becoming quite evident that the crypto is growing in market relevance,

And after its upgrade is launched, its growth will witness no signs of slowing down.

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