A letter addressing scheme has to do with a TCP/IP protocol. Addresses are determined by both decimal and binary counting.
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IPv4
Layer 2 addressing not required for this topology
1- Reduces routing table entries 2- Ease of management and troubleshooting.
An example is IPv4 addresses having network, subnetwork, and host portions.
255.255.255.255. Look here for the same question and answer asked differently:What_is_the_Significance_of_ip_address_255.255.255.255