In a word, Ethereum Name Service (ENS) is a name and lookup service that was established on the Ethereum blockchain. This service enables users of cryptocurrencies to transform their addresses from machine-readable to human-readable.
Consider it a moniker generator for public Ethereum addresses that aims to make cryptocurrency more approachable to the general population.
An open, decentralized, and extendable name system that interacts directly with the Ethereum blockchain is known as the Ethereum Name Service.
ENS replaces the long public address that crypto users are used to with a short, easy-to-read, and remember the name. Something complicated like “0xDC25EF3F5B8A186998338A2ADA83795FBA2D695E” becomes as easy as “Alice.eth.”
Users can manage their bitcoin funds and assets by simply using a human-friendly domain name when using the customized ENS addresses made available to them.
ENS domains are intended to take the place of usernames on web3, and they can contain cryptocurrency wallets, webpages, content hashes, and metadata. Owners can receive cryptocurrencies or NFTs by connecting all of their crypto wallets under a single Ethereum Name Service domain.
ENS names are sold or leased to the highest bidder. Locking or burning cash to claim a name discourages spamming. This ensures only active users claim names. Every ether spent on the process will be delivered to a burn address, miner, or bidder after some time.
How does Ethereum Name Service Work?
On the Ethereum Name Service, it takes five days to claim a name. It takes more than one transaction that must be done quickly, and most of the time, it can’t be undone. So, if you don’t want to lose your money, it’s important to understand how the process works.
You start by auctioning off a name. Everyone following the blockchain for that name will be notified immediately. Bidders who know how to spell the name can bid in five days. Bidders transmit a transaction with the most they’ll pay for a name.
ENS is made up of two smart contracts on Ethereum.
- ENS Registry
- Renewal
Ethereum Name Service Registry
The ENS registry is the first smart contract. It is responsible for recording all of the domains registered on ENS and storing three essential pieces of information regarding each domain. These three pieces of information are:
- Owner of the domain
- The resolver for the domain
- The caching time for all records that fall under the domain.
The ENS registry smart contract is the most important component of the service. It is responsible for maintaining a list of all domains and subdomains, and it is used to map representations of domain names to the smart contracts used by Ethereum Name Service resolvers. These, in turn, target addresses on the Ethereum network to map.
The resolver is the second type of smart contract, and its purpose is to convert human-readable domain names into machine-readable IP addresses and vice versa. The second smart contract does the matching between each domain and the user, website, or address that corresponds to it.
Those interested in making their Web3 username can do so by visiting the ENS app and beginning their search for a domain name that is still available. Once you have located one, all that is required of you is to complete the registration process, which entails confirming two transactions made from your wallet and paying the annual cost, which is $5 USD per year for names longer than five characters.
Once you have acquired ownership of the domain, you will have the ability to connect it to your cryptocurrency wallets and websites, as well as build several subdomains, such as email.rick.eth and website.rick.eth, which will all be connected under the same ENS domain.
Ethereum Name Service Domain Renewal
Domains on the Ethereum Naming Service, just like domains on the internet with extensions such as.com,.net, and others, need to have their registrations renewed before they become invalid. If the owner of an Ethereum Name Service Domain does not take the necessary steps to renew their domain before the day on which it is set to expire, they will lose control of the domain.
The majority of domains, around 1,520 ENS domains, were renewed the day before they were originally scheduled to expire. And on the day that the domains were set to expire, 694 ENS registrations were renewed.
ENS domain names consisting of one to four characters in length are regarded as premium, and as a result, their annual registration prices range from one hundred sixty dollars to six hundred forty dollars. This is in contrast to domains consisting of five letters or more, which only cost five dollars.
Those that pay a premium are likely to renew their names far in advance of their expiration dates since they do not want to risk losing their valuable and difficult-to-get domains. However, there are still domain owners who procrastinated their renewals till the very last minute and then renewed them within the hour.
What is Ethereum Name Service Used For?
Imagine that a buddy of yours wishes to reimburse you for dinner using cryptocurrencies. Sharing your Ethereum public address, which consists of 42 hexadecimal characters and might look something like “0xDC25EF3F5B8A186998338A2ADA83795FBA2D695E,” is required in order to accomplish this goal.
This is the same thing as your International Bank Account Number (IBAN), and it enables other people to send cryptocurrency to your wallet. You are able to give your public address a “nickname” through the use of ENS.
This means that rather than giving your buddy a long and confusing string of characters, you may give them a link to your public address, such as “Rick.eth,” which is instantly connected to your public address.
ENS provides human-readable domains for other cryptocurrency wallets, websites, content hashes, and metadata in addition to Ethereum addresses. The purpose of this is to serve as your Web3 username, connecting all of your addresses and websites under a single nickname.
This allows you to receive any type of cryptocurrency or NFTs via your ENS domain. You can also assign ENS names to decentralized websites like IPFS, but this takes more technical understanding. ENS expands DNS capacity by registering DNS names.
Advantages of ENS
- Your email address will be permanently registered on the ENS website after you have completed the registration process, and it will not be possible to change or delete it. To the extent that you still possess tokens, you will continue to exercise complete authority over the management of your domain name. For instance, you might construct your very own blockchain by making use of your domain.
- You might also run a startup business or participate in the operation of a media website. You may rest easy in knowing that ownership of your domain will never pass from your hands, regardless of what you decide to do with it in the foreseeable future.
- When at all practicable, the ENS Foundation, which is an entity that does not seek to make a profit, shall be in charge of registering new domains. If a domain name is not registered, however, it will become available in a new “slug” scheme. As is the case with the introduction of any new form of technology, swindlers will invariably attempt to purchase domain names with the intention of later reselling them for a profit.
Conclusion
The ENS was made for smart contracts on Ethereum and has always been a part of the Ethereum ecosystem. This means that it inherits its security and openness, unlike DNS records, which are stored on central servers and can still be hacked.
Its purpose is to bring all cryptocurrency wallets, websites, and subdomains under a single link, with the end goal of making cryptocurrency more user-friendly and less technical.
There is a possibility that, in the long run, there will be greater overall adoption of cryptocurrencies as blockchain addresses become easier for new cryptocurrency users to access.
ENS and other incentives along the same lines are absolutely necessary for the successful adoption of cryptocurrencies on a worldwide scale.
Also Read:
HOW TO REGISTER AN ENS DOMAIN: STEP-BY-STEP GUIDE
5 BEST CRYPTOCURRENCY TO WATCH AND INVEST IN 2022
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