A COMPREHENSIVE GUIDE TO ETHEREUM NAME SERVICE (ENS) IN CRYPTOCURRENCY

18 min readDec 2, 2023

The intricacies of blockchain technology, while offering heightened security, often pose a challenge for newcomers and those unfamiliar with technical aspects. Managing long and complex addresses in transactions or smart contracts can be daunting. Ethereum Name Service (ENS) is a solution to simplify the user experience and enhance accessibility within the Ethereum network.

The Ethereum Name Service (ENS) is a decentralized domain name system that enhances user experience in cryptocurrency. It simplifies interactions by converting complex Ethereum addresses into human-readable names. ENS is vital for the growth of the Ethereum ecosystem, offering a user-friendly way to navigate the blockchain. The latest update (at the time of publishing this article) showed ENS operating around 87,620 ETH in total volume with a 0.0018 ETH floor price. There are 3.1 million names registered on ENS, with 832,584 owners.

In this detailed guide, we’ll explore the fundamentals of ENS, its functionalities, and a step-by-step process for obtaining an ENS domain. In addition, we’ll delve into the benefits and potential use cases of ENS within the cryptocurrency ecosystem.

1. UNDERSTANDING ETHEREUM NAME SERVICE (ENS) & THE DOMAIN NAME SYSTEM (DNS):

ENS is revolutionizing how we interact with the Ethereum blockchain, offering a user-friendly and decentralized naming system. Its primary function is to associate complex and lengthy public addresses, such as “0x6B540e976aa6c61A398EFA3E08851290756c9f4c”, with a simple, memorable name as “uniparty.eth” since it’s easier to remember. Analogous to the Domain Name System (DNS) in Web2, ENS aims to simplify interactions by transforming machine-readable identifiers into human-friendly names. However, unlike DNS, which relies on centralized servers, ENS operates as a distributed domain name provider. It enables users to register domain names for decentralized websites on the Ethereum blockchain and facilitates the importation of the DNS names.

DOMAIN NAME SYSTEM (DNS):

DNS is a foundational component of the traditional internet. It translates domain names (like www.mainspringmedical.com) into IP addresses (like 23.227.38.74), which computers use to locate and communicate with each other over the internet.

Centralization: DNS is a hierarchical and centralized system. It relies on a global network of servers, with root servers at the top of the hierarchy.
Control and Ownership: Domain names are registered through domain registrars. Ownership and control of a domain are tied to these registrations, governed by centralized entities like ICANN (Internet Corporation for Assigned Names and Numbers).
Purpose: Primarily used for locating and identifying internet resources, such as websites and email servers.

ETHEREUM NAME SERVICE (ENS):

ENS is a decentralized naming system developed on the Ethereum blockchain’s framework. It maps human-readable names like “fightfud.eth” to machine-readable Ethereum addresses (e.g., 0xF4e9aEcEAF7205312db048eD4868184B094b217E), other cryptocurrency addresses, content hashes, and metadata.

Decentralization: ENS operates on the Ethereum blockchain, making it decentralized. There is no central authority controlling the ENS; smart contracts govern it.
Control and Ownership: Names in the ENS are acquired through a blockchain transaction. Ownership is recorded on the Ethereum blockchain, making it secure and resistant to censorship. The owner has complete control over their ENS name.
Purpose: ENS is used primarily within the Ethereum ecosystem, facilitating transactions and interactions by allowing users to translate complex Ethereum addresses into human-readable names.

While both DNS and ENS serve the fundamental purpose of mapping human-readable names to machine-readable identifiers, DNS operates in the traditional, centralized internet infrastructure, whereas ENS functions within the decentralized context of the Ethereum blockchain. ENS brings the benefits of blockchain technology, such as decentralization, security, and resistance to censorship, to the realm of naming systems. One of the main advantages of ENS is its ability to associate numerous services with a single domain name. This eliminates the need for multiple addresses and allows users to manage Ethereum based services under ONE-UNIFIED IDENTITY.

2. ERC-721, ERC-1155, AND THEIR RELATIONSHIP WITH ETHEREUM NAME SERVICE (ENS)

In blockchain technology, representing the value of transactions is often achieved through asset tokenization, which comes in two distinct types: fungible and non-fungible assets. Fungible assets are characterized by their divisibility and the ability to be exchanged for other assets of the same type. Non-fungible tokens (NFTs) are quite different; they are unique, indivisible, and lack exact duplicates.

The Ethereum blockchain utilizes two prevalent standards for crafting NFTs: ERC-721 and ERC-1155. These standards define the protocols for creating and managing NFTs, ensuring their uniqueness and facilitating their exchange or collection. Let’s review ERC-721 and ERC-1155 Standards to understand their relationship with ENS better:

ERC-721:

The ERC-721 standard was the first widely adopted standard for non-fungible tokens on the Ethereum blockchain. It allows for the creating unique tokens, each with distinct characteristics, which cannot be interchanged on a one-to-one basis with any other token. It offers several key features:

Uniqueness: Every ERC-721 token is unique, which means it can represent a distinct asset or item. This uniqueness is akin to having a serial number distinguishing one item from all others.
Ownership: These tokens are tied to the Ethereum blockchain, allowing for clear, indisputable ownership records. When someone owns an ERC-721 token, it’s similar to holding a deed to a property.
Transferability: ERC-721 tokens can be transferred between parties, enabling a market for NFTs where they can be bought, sold, or traded.
Interoperability: The standard ensures that tokens can be used across different applications. For example, a digital artwork represented by an ERC-721 token could be displayed in multiple virtual galleries.
Smart Contracts: The requirement for separate smart contracts for each token allows for intricate details and unique properties to be programmed into each NFT. This could include metadata about the digital asset, such as its creator, history, and origin.
Programmability: The smart contract’s underlying ERC-721 tokens can include complex logic, enabling developers to create

ERC-721 has set a precedent for the digital ownership of unique assets, paving the way for a diverse ecosystem of digital collectibles and art, gaming items, virtual real estate, and more. Its introduction has been a significant milestone in the blockchain space, highlighting the potential for blockchain technology to create new forms of digital ownership and value exchange.

ERC-1155:

The ERC-1155 standard, introduced after ERC-721, brought about a multi-token standard. This allowed a single contract under ERC-1155 to represent fungible (interchangeable) and non-fungible (unique) assets. This flexibility allowed for more efficient transactions and the ability to group multiple types of items in a single contract. This multifaceted approach offers several enhancements over the ERC-721 standard:

Dual Token Functionality: It provides a unified interface for creating a wide array of tokens, from fully fungible to fully non-fungible, including semi-fungible tokens, which can have both characteristics.
Resource Optimization: ERC-1155 reduces the redundancy and inefficiency of deploying multiple smart contracts for different types of tokens, leading to less strain on the network and potentially lower transaction costs.
Batch Processing: This standard permits the grouping of transactions, which can significantly decrease the gas fees and computational resources required for processing multiple transfers.
Enhanced Interoperability: The ERC-1155 standard is designed to be interoperable across different platforms and marketplaces, allowing for seamless trading and management of assets.
More Straightforward & More Flexible Transactions: The ability to transfer multiple token types in a single transaction simplifies complex trades and operations, providing greater flexibility in token management.
Advanced Economics and Utility: The standard enables more sophisticated economic mechanisms within games and applications, such as upgrading or converting tokens from fungible to non-fungible, which can represent the progression or crafting within a game.

Overall, ERC-1155 represents a significant step forward in the tokenization of digital assets, offering developers and users more flexibility, efficiency, and functionality. This standard is preferred for its operational efficiency, allowing for the bundling of multiple transactions, which reduces costs and optimizes storage on the blockchain. It is particularly well-suited to applications requiring diverse asset types and transactional complexity, such as gaming, decentralized finance, and the broader digital economy.

RELATIONSHIP WITH ETHEREUM NAME SERVICE (ENS)

As a decentralized domain name system on the Ethereum blockchain, ENS integrates with ERC-721 for its domain names. These domain names are treated as NFTs and follow the ERC-721 standard, emphasizing their uniqueness and transferability. This integration ensures secure management of ENS names on the blockchain and compatibility with standard NFT wallets and marketplaces for ease of management.

While ERC-1155’s involvement with ENS is less direct, it holds potential for future applications, particularly in managing multiple ENS names and transaction bundling, suggesting scope for more innovative and efficient operations in ENS-related functionalities.

In essence, ERC-721 and ERC-1155 are not domains but vital token standards on the Ethereum blockchain. ERC-721 plays a crucial role in the functionality of ENS by tokenizing domain names as NFTs, while ERC-1155’s flexible and efficient framework may offer novel possibilities in the ENS sphere. Both standards significantly contribute to the versatility and functionality of the Ethereum ecosystem, each serving distinct yet complementary roles.

3. DIVERSE UTILITIES OF ETHEREUM NAME SERVICE (ENS)

ENS offers a spectrum of utilities, each catering to different aspects of user interaction and functionality within the Ethereum ecosystem. Let’s explore these functionalities in detail:

HUMAN-READABLE WALLETS:

ENS allows users to assign a human-readable name to their cryptocurrency wallet addresses, enabling an effortless and more user-friendly way of sending and receiving payments. Instead of typing a lengthy address, users can send funds by entering the corresponding ENS domain. ENS also supports multiple currencies, making it easier for users to manage and transact with various tokens and cryptocurrencies.

DECENTRALIZED WEBSITES:

With ENS, website owners can register their domain names and associate them with decentralized content hosted on platforms such as IPFS. This allows censorship-resistant websites, immune to takedowns or restrictions from centralized authorities. Furthermore, ENS also supports Domain Name System Security Extensions (DNSSEC), ensuring the authenticity of websites. Here are the steps to create a decentralized website using ENS:

Step 1: Obtain an ENS Name: The first step in this process is to secure an ENS name. This acts as your unique identifier on the Ethereum blockchain, similar to how a conventional website domain name operates.
Step 2: Upload Your Content to IPFS: upload your website files onto the InterPlanetary File System (IPFS). This decentralized protocol is designed to enable the secure storage and sharing of content in a distributed manner.
Step 3: Connect Your ENS Name to Your Website: Once your files are on IPFS, the next step is to link your ENS name to your website. This connection makes your website easily accessible through a browser using your ENS name.
Step 4: Redirect Your ENS Name to Your Desired Website: Finally, you can redirect your ENS name to any website you choose. This feature ensures visitors reach your intended content, even if they enter a slightly different ENS name.

SUBDOMAINS:

ENS enables users to create subdomains under their primary domain name, allowing for better organization and management of services. For example, users can have a primary ENS domain for their website, with subdomains for their various decentralized applications (DApps) or other services.

SHOWCASE YOUR NFTS:

Non-fungible tokens (NFTs) have gained immense popularity recently, and ENS offers a unique way to showcase them. Users can assign an ENS name to their NFT collection or individual tokens, providing a designated space for displaying and promoting their digital assets.

SIGN-IN WITH ETHEREUM (SIWE):

Like social media platforms offer “Sign-In with Google/Facebook,” ENS offers a decentralized alternative called “Sign-In With Ethereum” (SIWE). This feature allows users to log in to websites or DApps using their ENS names, eliminating the need for multiple accounts and passwords.

PERSONAL WEB3 IDENTITY:

ENS also serves as a personal identity system in the Web3 world, connecting users to their Ethereum-based services and facilitating seamless interactions with decentralized applications.

BANK ACCOUNT:

Some financial institutions now support ENS names as bank account numbers, providing users a more user-friendly experience when managing their finances. In Addition, this also eliminates the risk of errors when entering lengthy account numbers.

BRANDING:

ENS names also allow for branding opportunities, providing individuals and businesses with a unique identity within the Ethereum ecosystem. This can be particularly useful for promoting products or services to build a robust online presence.

FLEX:

ENS offers Flex, a feature that enables users to switch between Ethereum addresses associated with their ENS name easily. This allows for more flexibility and control over one’s digital identity within the ecosystem.

INTEGRATE WEB2:

As mentioned earlier, ENS allows for the importation of DNS names, making it easier for users to interact with conventional websites and services using their ENS names. This integration bridges the gap between Web2 and Web3 and provides a more seamless transition for users. With these diverse utilities, ENS is paving the way for a more user-friendly and accessible Ethereum ecosystem.

ADDITIONAL USE CASES AND INTEGRATION:

Beyond the mentioned uses, ENS facilitates interactions with DeFi protocols, DAOs, and other decentralized applications. It is integrated with many Ethereum wallets and decentralized applications for seamless interactions. An example of ENS integration is “uniparty.eth” by congress.tech ($CONG), aptly named “The Congress of Crypto, for Crypto,” leverages ENS technology to create a more accessible and unified crypto community. The $CONG initiative is not just about creating a digital identity; it’s about building a platform for change, governance, and support for new crypto users. In partnership with $MONG (mong.life), members who mint the ERC-1155 NFT — “uniparty.eth”, gain access to exclusive events, web3 communication apps, and a voice in the project’s direction. This collaboration symbolizes a commitment to cleaning up the crypto space and paving the way for a more secure and trustworthy digital future.

$CONG aims to advance the progression of Ethereum Name Service (ENS) within the cryptocurrency domain with “Govermint as a Service (GAAS).” The GAAS undertaking is dedicated to reforming the management and functionality of crypto services. It is a collection of ENS domains, each precisely designed to address various facets of the crypto ecosystem through several initiatives.

Advancement

Govermint.eth / UniParty.eth: At the forefront, these domains are dedicated to cleansing and fostering growth within the cryptocurrency world. They symbolize a commitment to transparency and development in the crypto space.

Innovation

Lawnch.eth: This domain is integral to vetting new and existing projects. Holding a certain amount of $CONG tokens grants users whitelist status, enabling them to receive airdrops from new projects. Additionally, it offers a democratic platform where users can vote on which projects to launch. Interestingly, projects not initially included in the Lawnch.eth pad can propose initiatives, essentially functioning as a DAO (Decentralized Autonomous Organization) service.

Deliberation

Dbate.eth: Utilizing $CONG tokens, users can initiate and participate in debates, fostering a vibrant community discussion platform. Votes using $CONG determine the debate winners, promoting active community engagement.

Oversight

Rugulation.eth: This domain focuses on legal aspects, rewarding users with $CONG tokens for reporting fraudulent activities or blockchain anomalies, encouraging a safer crypto environment.

Empowerment

We.ThePeople.eth: Emphasizing financial independence, freedom, and rights, this domain offers on-chain voting and a voice for users. It’s a hub for initiating and discussing proposals, reinforcing community participation.

Representation

Constitution: Representing the foundational principles of this initiative, it serves as a guiding framework, mirroring the essential ethos of the crypto community.

The overarching goal of these initiatives is to establish robust tokenomics for the entire $MONG ecosystem. Additionally, the use of ENS subname membership plays a pivotal role in accessing member benefits and voting mechanisms, thereby enhancing the inclusivity and functionality of these services.

4. FUNCTIONALITY AND ARCHITECTURE OF ENS

Like DNS, Ethereum Name Service operates using hierarchical names or domains, allowing users control over subdomains. ENS comprises three key components:

REGISTRY:

The core smart contract holds a list of domains and subdomains, mapping them to Ethereum addresses upon registration. The registry contract also enforces ownership and manages updates to domains.

RESOLVER:

The resolver contract maps domain names to various resources, such as IPFS or Ethereum addresses. This allows for the translation of human-readable names to machine-readable information.

ENS NAME:

They are registered once confirmation of the entry to the registry with the domain name and Ethereum address is obtained. This data is stored on the Ethereum blockchain, ensuring tamper-proof visibility to the public. Registering domain names for decentralized websites (dApps) involves creating an entry with the website’s InterPlanetary File System (IPFS) hash, a peer-to-peer file system supported by various web browsers.

DOMAIN TYPES:

ENS supports various domain types, including .eth domains (governed by a specific registrar and stored as ERC-721 NFT tokens) and the ability to create subdomains for hierarchical naming.

5. OBTAINING AN ENS DOMAIN

To acquire a personalized ENS domain, follow these steps:

PREPARE REQUIREMENTS:

Obtain a non-custodial Ethereum wallet compatible with ENS and ensure it holds ETH for transaction fees. This wallet will serve as the owner of your ENS name.

CONNECT YOUR WALLET:

To establish a connection between your non-custodial wallet and the Ethereum Name Service (ENS), navigate to https://app.ens.domains/ and select the ‘connect’ option to link your preferred wallet with the platform. A pop-up window will walk you through safely connecting the decentralized application (dApp) with your wallet. By following these instructions, you’ll successfully establish the connection, enabling seamless interaction and management of your ENS assets through your chosen wallet.

SEARCH FOR DESIRED NAME:

The ENS domain platform boasts a user-friendly interface, featuring a convenient search bar enabling users to verify their desired domain names’ availability effortlessly. Should the name be in use, the platform offers a comprehensive lookup, providing details about the current owner and the expiration date of its registration. Users can select the registration duration for available domains in years before proceeding to the subsequent steps, ensuring a seamless and personalized domain acquisition experience. This intuitive process streamlines domain acquisition, empowering users with informed choices and smooth transitions toward securing their preferred online identity.

PURCHASE DOMAIN NAME:

Acquire your desired domain name hassle-free through our streamlined process. Upon selection, receive an estimate outlining registration and gas fees associated with the character length of your chosen name. Initiate the registration process and sign the transactions, then patiently await confirmation, ensuring the exclusivity of your registration before finalization. Rest assured, securing your unique domain is just a few steps away.

REGISTRATION PROCESS:

The process involves interacting with a registrar smart contract, paying registration fees, and configuring the domain with a resolver. Domains are typically auction-based, with bidding for domain names.

COMPLETE REGISTRATION AND SET RESOLVER:

Upon successful transaction confirmation, proceed to finalize your registration to obtain your ENS domain. This step ensures that your unique ENS domain is secured. Finally, configuring the resolver allows decentralized applications (dApps) to seamlessly utilize your ENS name in place of your wallet address, streamlining accessibility and enhancing user interaction within the decentralized ecosystem.

6. IS ENS THE FUTURE OF ONLINE IDENTITY?

As the world continues to embrace decentralization and blockchain technology, Ethereum Name Service (ENS) is revolutionizing online identity management. With its diverse utilities and user-friendly interface, ENS empowers individuals and businesses with a unique digital identity within the Ethereum ecosystem. Integrating Web2 and Web3 allows for seamless interaction between traditional websites and decentralized applications, bridging the gap and paving the way for a more accessible future. With its robust functionality and secure architecture, ENS is poised to shape the future of online identity and revolutionize how we interact with the digital world. So why wait? Secure your personalized ENS domain today and join the decentralized movement towards a more inclusive and user-friendly internet. Let your ENS name be the key to unlocking the full potential of the Ethereum ecosystem.

7. WILL ENS REPLACE TRADITIONAL DNS?

Both ENS and DNS have their characteristics and serve different purposes. While DNS is primarily used for translating domain names to IP addresses, ENS goes further by mapping human-readable names to various resources like Ethereum addresses or IPFS hashes. Additionally, ENS operates on a decentralized blockchain platform, providing transparent and tamper-proof registration of domains, while traditional DNS is centralized and managed by central authorities. Unlike traditional DNS, where central authorities manage domains, ENS is also user-controlled, meaning individuals have full ownership and control over them. However, it is worth noting that ENS is still a relatively new technology and may take some time to gain widespread adoption.

While ENS may only partially replace traditional DNS, it offers unique features and benefits that make it a valuable addition to the online identity management landscape. So, whether you’re looking to secure your website, establish a unique digital identity for your business, or explore the potential of decentralized technology, ENS is an alternative to traditional DNS. With its user-friendly interface and robust functionality, ENS is well-equipped to shape the future of online identity management. So why not join the decentralized movement towards a more inclusive and secure online ecosystem? With ENS, the possibilities are endless.

8. IMPORTANT CONSIDERATION WHEN CHOOSING AN ENS

DOMAIN:

While choosing an ENS domain, there are a few essential considerations to keep in mind, such as:

Availability: Your desired domain name must be available for registration. If the name is already in use, you may need to devise an alternative or try different combinations.
Registration and Gas Fees: These fees vary on the chosen domain name’s character length and duration of registration. Keep this in mind when selecting your preferred ENS domain.
Integration with Wallet: It’s essential to ensure that your chosen wallet is compatible with ENS before registering. This will eliminate any potential issues during the integration process.
Purpose of Domain: Consider how you plan to use your ENS domain and choose a name that accurately reflects its purpose. This can help with brand recognition and establishing a unique online identity.
Renewal Process: ENS domains must be renewed periodically, so checking the renewal process before registering is essential. This can help avoid any unexpected expiration of your domain.
Drawbacks and Challenges: These include the costs associated with registration and maintenance, auction mechanism leading to higher prices, domain squatting, complexity for novice users, centralization of registrars, limited adoption beyond Ethereum, typosquatting risks, privacy concerns, and dependency on the Ethereum network.

Considering these considerations, you can make informed decisions and secure a personalized and relevant ENS domain for your online presence.

9. Conclusion

In today’s digital landscape, having a unique online identity is crucial. ENS offers a decentralized and secure solution for managing online identities within the Ethereum ecosystem. Whether you’re looking to establish your brand or a business seeking to enhance user interaction within the decentralized world, ENS provides an intuitive platform for acquiring and managing your unique domain name. So why wait? Take the leap and join the decentralized movement towards a more inclusive, user-friendly internet with ENS. With its robust functionality and potential for widespread adoption, ENS is undoubtedly the future of online identity management. So secure your personalized domain today and be a part of the evolution towards a more decentralized future.

10. FAQs

Q1: Can Anyone Register an ENS Domain?

Ans: Anyone can register an ENS domain if the desired name is available and they have a compatible wallet for integration.

Q2: Does ENS have any tokens?

Ans: Certainly! The Ethereum Name Service (ENS) has a token known as ENS. It operates as the governance token for the Ethereum Name Service protocol, specifically designed to allocate “.ens” domains. Being an ERC-20 utility token, ENS is intricately intertwined with the decentralized naming system established on the Ethereum network. This token was dispersed through an airdrop, benefiting ENS domain holders, contributors engaged in the ENS project, and the ENS DAO community treasury. Since its inception, the primary role of ENS has centered around governing the ENS protocol and managing the community treasury, emphasizing its crucial function within the ecosystem.

Q3: Where to start with ENS?

Ans: To begin using ENS, visit app.ens.domains to search for your desired domain name and complete the registration process. You can also explore the different features and integrations available on the website to maximize your ENS domain. Various online resources and community forums are available to help you navigate and understand ENS better.

Q4: Can I transfer my ENS domain to someone else?

Ans: Within the ENS registry, individuals can transfer name ownership, institute a resolver, and manipulate subdomains through creation and reassignment. This versatile functionality enables seamless management and control over digital identities, allowing for smooth transitions between owners and facilitating the establishment of distinct subdomains under a given name. The ENS registry is a centralized hub for executing these crucial actions, streamlining the decentralized ecosystem’s domain management and ownership process.

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Disclaimer: The content of this article is not intended as financial or investment guidance. It should not be interpreted as an endorsement or disapproval of cryptocurrency transactions. The material presented is solely for educational and informational objectives. We encourage you to perform independent research and seek advice from a qualified financial advisor before investing. Although ENS presents distinct advantages and functionalities in online identity management, assessing your situation and conducting comprehensive research before making cryptocurrency-related decisions is crucial.