For the past few years, blockchain technology has been rapidly advancing. We can now see the technology in action on a variety of platforms and digital products. However, if you want to log in to any such platform which is powered by blockchain technology, you will have to enter a unique ID or username. These IDs or usernames are unique to each platform, and remembering them would be challenging with the growing prominence of blockchain technology.
What is ENS (Ethereum Name Service)?
Imagine, if a user wants to receive cryptocurrency in a wallet, then they have to provide a large id or public wallet address which comprises letters and numbers and is not easy to remember. ENS is what helps to resolve the issue and make remembering these a work of the past. ENS assigns a universal name or ID to the user which can be used across the decentralized blockchain platform instead of entering an unreadable combination of letters and numbers. These usernames are based on the Web 3.0 platform and can be commonly used on all blockchain and decentralized apps, instead of creating a complex and unique username for each. Not only websites, and digital wallets, but these unique ENS can also be used on metadata, smart contracts, and more. The possibility of using ENS on different elements would have already increased by the time Web 3.0 comes in.
It can be understood as a name and lookup service that has been built on the Ethereum blockchain platform and converts the machine-readable address to human-readable. You can also think of it as a mechanism to give a nickname to the more complex address. The ENS can prove to be very useful in multiple blockchain platforms where the data or digital documents can be directly issued to a simple ENS. Also, it is very useful in the crypto trading segment as the crypto can be traded, sent, and received on a simple and easy-to-remember address for the wallet. ENS can be used for things like crypto wallets, content hashes, websites, and even metadata. Since it is based on a decentralized platform, it is not controlled by a single entity which makes it a lot more secure.
How Does it Work?
ENS is based on smart contracts which are further developed on the Ethereum platform. There are two smart contracts that are involved in creating the ENS. The first smart contract is actually an ENS registry which contains that data about all the names of domains that have been registered under ENS. The first smart contract holds three important pieces of information.
- First is the details of the domain like the owner of the domain.
- The second is the resolver for the domain
- The third is caching time for all the records under the specific domain.
The second contract that is a part of ENS is Resolver.
- The resolver is the smart contract that converts the machine-readable address to human-readable and vice versa.
- It matches the domain name to an individual, website, or address.
The number of available domains is already increasing and will reach a new number in the next few years. Similarly, the popularity of subdomains of domains like .eth has also increased in the last couple of years.
Visit an ENS app and search for the domain name. Think of searching for a website domain name. When a domain is not registered with anyone, it shows as available or otherwise taken. Similar is the case in ENS apps. To get an ENS for yourself:
- Visit an ENS app and search for the domain name.
- You can search for your domain or username and if it is available, you will have to follow the registration process.
- You will have to process at least two transactions from your wallet for the registration and also pay a yearly fee for the same.
Currently, the fee is charged at $5 for any domain name longer than five characters. After the fees and transactions have been completed, you will have the domain name which will be associated with the websites, crypto wallets, subdomains, etc. Since ENS is becoming popular rapidly, users are looking to get their unique addresses. Domains like Exchange .eth were sold for 6,660 ETH in an auction which converts to $609,000. The platform not only provides domain names ending with .eth, but also with .com, .org, .io, and a lot more.
How are ENS created?
ENS domain name uses ERC-721 NFTs, which represent a unique address. It is understandable as NFTs are always unique and can never be duplicated. Now a user can either buy a domain or sell and transfer the NFT to trade a domain name. Since the wallet address and other details of the user are attached to the Token, it is only manageable by the owner and no one else has access to the same. A user will have to interact with the registrar for the subdomain they want. For example, if the user wants a .eth domain name, then they will have to interact with the .eth registrar for the subdomain. Another thing that most of the ENS users do not know is that it is not mandated to purchase an ENS. The nicknames can also be rented for a year. Some of the popular names are also auctioned for the highest bidder and also rented out.
Things you can do with ENS
With ENS the confusion of having multiple addresses on a decentralized platform will be completely removed. The users will be able to use a single name or address for all kinds of transactions on the blockchain platform. ENS leads to less chance of errors while sending cryptocurrency on wallet addresses and using this the domain owner can create subdomains, which can also be assigned to others. The same EN can also be used on contracts. transactions and metadata, instead of the domain name as well. The possibilities of ENS are very wide and it will further increase with the development of Web 3.0. We could be looking to see the use of ENS in multiple segments in Web 3.0
ENS is an open-source protocol and follows a decentralized platform. ENS is governed by the community members as a DAO(decentralized autonomous organization). Now this ENS DAO is governed by an ENS token which helps to submit proposals and cast votes. It is a protocol utility and governance token that helps in the future development of the protocol. The one that holds an ENS can cast their votes on proposals that are on ENS DAO. The ENS token is called ENS-20 and is the 110th largest currency in the market. It has a maximum supply of 100 million and the existing circulating supply is 19.6 million. Also, with the airdrop for .eth domain holders, it has become the best crypto to invest in right now and in the future.
How ENS is Different in Web 3.0
Currently, the world of technology is using the Web 2.0 platform and is still working on implementing the Web 3.0 platform and developing apps. DNS or Domain Name Service is something that we regularly use in the Web 2.0 platform. ENS is something very similar in the Web 3.0 platform. It is an alternative to the DNS platform that we are currently using but on a decentralized platform. Therefore, it will never have the risk of single-point failure that exists in DNS. Due to the use of two smart contracts, in the END, the interoperability is at the top with other smart contracts that are created on the Ethereum platform. Also, it becomes a lot more secure than the existing DNS service and also is more resistant to censorship.
Replacing DNS in Web 3.0
It is not the first time DNS in Web 2.0 has been tried to replace something in the Web 3.0 version, however, ENS is the only one that provides a human-readable address that can be used across apps on the decentralized platform. Due to ENS, the transaction done with Cryptocurrency has become a lot easier and more understandable as well. It makes things simple for people who are just introduced to the cryptocurrency world. Currently, there is no other alternative in the market when it comes to ‘naming services.’ We can expect better technologies after Web 3.0 is completely implemented, but for now, ENS is one of the best services available in its segment.
ENS in Crypto Space
The highest impact of ENS can be seen in the Crypto market and it has definitely made Crypto trading and managing crypto in the digital wallet a lot easier for everyone. It is proving to be a significant pillar in the development and implementation of Web 3.0 and related apps. The world of cryptocurrency is highly technical and the concept of the same is not easy to grasp. Especially for the users who have recently entered and want to learn more about cryptocurrency. Cryptocurrency involves numbers, coded addresses, and other machine-readable public addresses which are not convenient and easy to remember. It is why ENS was brought in and it makes things a lot easier for the crypto world. It helps the users to interact with machine-readable data in the form of simple links which are easier to remember and are short.
Using NFT in ENS
These easy nicknames interact easily with dApps and can receive any kind of NFTs or cryptocurrency using the same address. The best part about the ENS is the global adoption. The nicknames can be used across the globe to transfer and trade crypto and NFT through any decentralized apps. It has definitely made the crypto space a lot easier to access and understand for everyone. The popularity of ENS can be seen through its ENS DAO, which was launched on November 9, 2021, and got a market capitalization of $1 billion the very next day. ENS is going to overtake the DNS namespace in the coming years completely and it is easily understandable the amount of growth it will have in the future.
Another major update that everyone should have regarding ENS is that all the users with a .eth address since October 31, 2021, are also eligible to receive $ENS tokens for free. The free token can be claimed until May 4, 2022, and after that date, it will be burned and cannot be claimed any further.
- The users will have to visit ENS Airdrop and connect the wallet to begin.
- There are different options to select from. Select the Wallet or the provider.
- Once you select the wallet type, click on Continue.
- On the next screen, you will see the option “Start your claim process”, along with the amount of ENS tokens that you are eligible for.
- Read all the given information and terms properly before signing in to your wallet.
- Select “Delegate your tokens” options and get the voting power for yourself or another user.
- Now check the amount and delegate before you click on the Claim button
Once you complete the process, you will be able to claim the free ENS tokens for yourself. However, before the claim process, you will have to pay a gas fee to claim the token which is minimal.
In the world of decentralized applications and platforms, ENS has been making its mark in terms of easy accessibility and easier ways to interact with the blockchain. You can consider the example of IPS addresses that are no longer used in the same way as they were before. Similarly, ENS will be replacing DNS and will be a completely new way through which we navigate on the web to different websites, digital wallets, smart contracts, and a lot more. The increasing popularity of ENS will surely make it one of the most important components of Web 3.0 in the future. Since the airdrop of ENS tokens, users’ interest in ENS has also increased globally.