Ethereum Name Service (ENS)
Open, Decentralized Naming System on Ethereum.
You may have come across names ending in .eth when exploring the crypto world on social media and the so-called Web3, primarily with avatars as profile images.
The Ethereum Name Service is one of Ethereum’s most popular projects, and for good reason. “ENS offers a safe & decentralised mechanism to address items both on and off the blockchain using simple, human-readable names,” according to the ENS website.
In other words, you may name your Ethereum (or favoured chain) address. This is similar to how DNS operates on the conventional web. Every website has an IP address, but no one types it into their browser; instead, we type in names like amazon.com, not 22.214.171.124 (try it, it works!). The ENS has a lot of cool capabilities, but I’m going to concentrate on registering and managing. eth names and subdomains in this tutorial.
Introduction To ENS
Ethereum Name Service is a blockchain-based distributed, open, and extendable name system. ENS translates human-readable Ethereum addresses like vitalik.eth into machine-readable alphanumeric codes that wallets like Metamask are familiar with. It’s also feasible to convert metadata and machine-readable Ethereum addresses back to human-readable Ethereum addresses.
The Ethereum Name Service’s purpose is to make the Ethereum-based web more accessible and understandable for humans, similar to how the Domain Name Service makes the internet more accessible. ENS, like DNS, employs domains, which are dot-separated hierarchical names in which domain owners have complete control over their subdomains.
In November 2021, ENS held a tremendously successful retroactive airdrop, rewarding users who had purchased addresses before the project’s token launch. In February 2022, however, it came under fire for allegedly homophobic tweets from its head of operations.
How Does it work
ENS is based on two Ethereum smart contracts. The first smart contract is the ENS registry, which keeps track of all domains registered on ENS and contains three key pieces of information for each one: the domain owner, the domain’s resolver, and the caching time for all entries under the domain. The resolver is the second smart contract, which converts domain names to machine-readable addresses and vice versa. This second smart contract connects each domain to the user, website, or address associated with it.
Those interested in creating a Web3 login should go to the ENS app and look for an available domain name. Once you’ve found one, all you have to do now is complete the registration procedure, which entails confirming two transactions from your wallet and paying a monthly fee of $5 for names with more than five characters. Once you have the domain, you may connect it to your crypto wallets, websites, and numerous subdomains, such as email.satoshi.eth and website.satoshi.eth, all of which will be under the same ENS domain.
Because ENS domains are restricted, crypto natives are scrambling to obtain their nicknames, just like they did when DNS names were first introduced. Some are even engaging in ENS domain flipping, which might be a lucrative side job considering that exchange.eth sold for 6,660 ETH, or US$609,000, at the time of the auction, while weather.eth went for 300 ETH, or US$27,000.
ENS not only supports. eth, but also the most common DNS domains such as.com, .org, .io, .app, and others.
What is the cost of purchasing an ENS domain?
The cost of an ENS domain may be split into two parts: auction expenses and renting charges. In an auction, the price of an ENS domain name was determined by its popularity. Short, three-letter terms were often the most expensive, while well-known names like God, Car, or ETH attracted greater premiums.
Once you’ve purchased an ENS domain, you’ll have to pay an annual renewal fee in ETH. Fees are expressed in dollars but converted using the Chainlink ETH/USD oracle’s exchange rate. The annual renewal fee is $5 for names with five characters or more, but it increases as the number of letters decreases.
Use Cases for ENS
Wallets for Cryptocurrencies
The most prevalent application of ENS is for storing and trading bitcoins in wallets. An ENS may be used to purchase, sell, transmit, and receive cryptocurrencies. Any coin or blockchain address is supported by ENS.
With ENS, you may create censorship-resistant decentralised websites. It’s as simple as posting a website to an IPFS (InterPlanetary File System) and using an ENS name to view it.
Brave, Opera, MetaMask, and Status, among others, support ENS-IPFS websites. Users may utilise EthDNS to add “.link” to their.eth website name in browsers that don’t support ENS-IPFS webpages natively.
In 2019, ENS implemented IPFS and Swarm network compatibility for decentralised websites. Support for Tor.onion and multi-coin addresses was introduced the same year, allowing users to put any cryptocurrency address in their name’s records.
An ENS username can be associated with a variety of personal information, such as an email address or an avatar. As a result, ENS-enabled usernames might become our primary online identity.
Who manages ENS?
The Ethereum Foundation’s Nick Johnson and Alex Van de Sande lead the early development of the ENS.
The initiative distributed ENS tokens to users of the service in November 2021 and created a decentralised autonomous organisation, or DAO, to run it. (True Names Limited is the legal entity linked to the DAO.) ENS token holders act as shareholders in the corporation, making choices regarding pricing, protocol modifications, and how funds are managed in the treasury.
The introduction of ENS tokens also resulted in the project’s funding strategy shifting away from grants. On crypto exchanges, ENS tokens may be traded for US dollars and other cryptocurrencies, giving the project’s creators a financial lifeline.
The Token And Its Economics
The platform’s native token, ENS, is utilised for the following functions:
The ENS DAO is in charge of essential aspects of the system, such as pricing and the price oracle. Only proposals with at least 100K ENS tokens can be submitted. For approval, a simple majority with a quorum of at least 1% of all tokens is necessary.
Treasury Grants: Holders of ENS tokens will vote on whether or not to approve Treasury grants and expenditures. The Treasury will get future revenue.
The official website allowed early users of the Ethereum name service protocol to collect their ENS coins. Others can purchase the cryptocurrency on exchanges such as Binance, Uniswap, Sushi, and OKEx, to mention a few. ENS is ranked 152th largest cryptocurrency at the moment, is now trading at $9.09 (707.16 INR), as of MAY 16rd 2022. and as market size of more than $180 Million. ENS has a circulating supply of 20.2 million tokens and a total supply of 100 million tokens as of May 2022.
In the realm of decentralised networks, ENS is a step forward in terms of making blockchain interaction more accessible. Because of its use and growing popularity, we may witness an increase in ENS names, just as we no longer require IP addresses to access the web. The cryptocurrency ecosystem has shown increased interest in the project after its airdrop.
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