What is address(0) in Solidity : <p>Can anyone explain to me what <code>address(0)</code> is in Solidity? I found the following in the docs but it doesn't really make sense to me:</p>

<blockquote>
  <p>If the target account is the zero-account (the account with the address 0), the transaction creates a new contract. As already mentioned, the address of that contract is not the zero address but an address derived from the sender and its number of transactions sent (the “nonce”). The payload of such a contract creation transaction is taken to be EVM bytecode and executed. The output of this execution is permanently stored as the code of the contract. This means that in order to create a contract, you do not send the actual code of the contract, but in fact code that returns that code.</p>
</blockquote>

<p><a href="http://solidity.readthedocs.io/en/develop/introduction-to-smart-contracts.html?highlight=address(0)#index-8" rel="noreferrer">http://solidity.readthedocs.io/en/develop/introduction-to-smart-contracts.html?highlight=address(0)#index-8</a></p>
