Transaction Recipient
The recipient of a transaction is specified in the to field. This contains a 20-byte Ethereum address. The address can be an EOA or a contract address.
Ethereum does no further validation of this field. Any 20-byte value is considered valid. If the 20-byte value corresponds to an address without a corresponding private key, or without a corresponding contract, the transaction is still valid. Ethereum has no way of knowing whether an address was correctly derived from a public key (and therefore from a private key) in existence.
Warning | The Ethereum protocol does not validate recipient addresses in transactions. You can send to an address that has no corresponding private key or contract, thereby “burning” the ether, rendering it forever unspendable. Validation should be done at the user interface level. |
Sending a transaction to the wrong address will probably burn the ether sent, rendering it forever inaccessible (unspendable), since most addresses do not have a known private key and therefore no signature can be generated to spend it. It is assumed that validation of the address happens at the user interface level (see [EIP55]). In fact, there are a number of valid reasons for burning ether—for example, as a disincentive to cheating in payment channels and other smart contracts—and since the amount of ether is finite, burning ether effectively distributes the value burned to all ether holders (in proportion to the amount of ether they hold).