Constant coin burning is one of the key elements of PLC Ultima value keeping strategy. In addition to the targeted large-scale coin burning, there is a constant burning of commissions while making transactions on the network. The proportion of burning coins is 1 to 3%. This supports the coin’s deflationary nature. Every transaction results in burning coins.
We get a lot of questions about how coin burning works on the PLC Ultima blockchain. In this article, we will tell you about this process and prove that no one can have access to the burned coins.
Before we start talking about the burning wallet specifically, we will tell you how wallets generally function on our blockchain.
How is a wallet created on the PLC Ultima blockchain?
If you go to our block explorer, you will see that the wallets look standardly: they start with the same characters and have a standard length.
However, this address is just the overwrap of the wallet. It is based on a private key, and it’s only the owner who has access to it. The wallet address is generated based on the private key. And while the wallet addresses have an external resemblance, each private key is a random set of numbers and other symbols.
The exact private key is necessary to carry out all actions with the wallet, for example, sending and receiving cryptocurrency transactions. That is why we constantly focus on the importance of saving private keys.
What is behind a blockchain wallet?
Users send coins to each other using addresses. But how do these processes work? Let’s figure it out.
The blockchain is controlled through special scripts, which are commands written in a programming language. Each action on the blockchain has its own script. So, when you send coins from wallet A to wallet B, the system creates a script that describes the conditions under which wallet B receives them.
What is the Burning Wallet?
Burning Wallet is programmed to receive transactions only. This wallet is a standard practice for most cryptocurrency projects providing only burning with no possibility to withdraw coins from it.
The impossibility of sending transactions from such a type of wallet is embedded in the blockchain, since this wallet does not have a private key, that is it was created using a special script. The absence of a private key is an important characteristic that makes it impossible to make transactions from such a wallet.
In the programming language, the command forbidding the sending of coins from the wallet is expressed by the following value:
Also, the non-standard wallet is indicated by its type:
You can see these values by entering the Burning Wallet address into the node interpreter. Let’s do this together with you to make sure that there is a permanent burning of coins in Ultima PLC.
To do this, you must take the following steps:
- Run PLCU node
Wait for synchronization. Open the Help section in the menu, then Debug Window and select Console:
- Go to the block explorer (https://plcultima.info/en) and find any transaction where there is a wallet to burn coins. It is highlighted with a special icon and is easily recognized.
- Copy the transaction txid code:
- Run the following command in the console (using copied transaction txid code). To start, press the Enter button:
You will see the following results:
where U2xHQcsFhtoDLZM3rBVj9mWvyDcYHPtDs1Tqa is a standard address that has a private key, and U2xHfRKJx7kiicc4SVeWpgWbX28bNRSt3ACeb is an address without a private key:
To prove that the U2xHfRKJx7kiicc4SVeWpgWbX28bNRSt3ACeb address does not have a private key, сonsider that the inability to send coins in the scripting language is indicated as OP_INVALIDCODE = 0xff (source: https://en.bitcoin.it/wiki/Script) and run the following command in the console:
You will see the following output:
This is the burning wallet address.
We hope that after reading this article, you will have no doubts about the transparency of the coin burning procedure in PLC Ultima, a tool that has been providing PLC Ultima with liquidity and exchange rate stability for a year now, even during bear markets.