What is Ethereum Name Service ENS?

What is Ethereum Name Service ENS?

what is ens

Major wallets like Coinbase Wallet, MetaMask and Trust Wallet all let you send and receive coins using ENS usernames. Many enthusiasts use their ENS username as their Twitter handle to signify their interest in the crypto space. The ENS governance token is a token created on the Ethereum blockchain. They are traded by speculators, as are most crypto tokens, but the token also serves a specific role in the ENS community. ENS community members — as members of the DAO — use their tokens to communicate changes they wish to see in the organization. No one would have imagined but today we have almost 300,000 domains registered on ENS alone owned by over 100,000 people.

Monetizing ENS Domains

what is ens

The primary role of ENS is to help you translate complex identifiers on Web3, such as crypto wallet addresses, hashes, and metadata, to readable names (domains). ENS remains dedicated to a future where digital identity, ownership, and user-centric design are central to the evolution of the internet. Similarly, ENS stores data in records, but these records are not limited to only Ethereum addresses. Any number of records can be created, and resolved by smart contracts on the blockchain to find the location of those resources.

ENS foundation

The cost of a new ENS domain is at least $5, but users should expect to pay fees for the Ethereum transaction. As technology and society evolve, it is likely that there will be additional use cases for ENS names in the future. DNS names can contain multiple records that point to various locations that Internet services use. For example, a DNS mail record, or MX record may point to the location of an email server used to deliver email to the correct servers. As a simple example, Vitalik.eth is an ENS name that maps to 0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045, an Ethereum blockchain address. In May of 2017, the first ENS names were minted, starting with rilxxlir.eth.

How Popular Is ENS?

what is ens

It is a nonprofit and cannot pay out dividends to its directors or members. The Foundation itself has one supervisor, filled by a Cayman Islands firm, DS Limited. For instance, later this year, the ENS community will vote on the ENS Constitution — a set of rules and guidelines for how ENS should be governed. If 67% of votes cast on a particular article of the constitution are “yes” votes, then the article passes.

Ethereum Name Service vs. Unstoppable Domains

As such, anyone who complies with the registrar’s rules and regulations can create an ENS domain. An added advantage of ENS is that you can import domains that you already own. Besides, they function similarly as they operate on a system of dot-parted tiered nomenclature called domains. The Domain Name Service (DNS) was created by Paul Mockapetris – a computer scientist from the US – in 1983. It followed the research of another American scientist – Elizabeth Feinler.

Instead, information about your ENS username is stored directly on the Ethereum blockchain. Under the hood, the entire ENS protocol is managed through smart contracts that register and resolve ENS names on the network. ENS is not the only domain name service provider competing for supremacy on Web3. Both Unstoppable and ENS are built on top of Ethereum and both allow users to create and register a human-readable address for crypto addresses.

They are technically meant for computers as the end users and not humans. At the same time, though, DNS records of domains and names are typically stored on centralized servers, making them prone to hacks. ENS, on the other hand, are secured by Ethereum’s blockchain, making them multifold and more secure. In the spirit of decentralization, the Ethereum Name Service is operated by a decentralized autonomous organization (DAO).

Eventually, DNS or Domain Name Servers were created to bridge the gap between what machines needed to use and what humans were able to understand and remember. Early on the need was known to create a naming system for the blockchain. The Ethereum blockchain launched in 2015 and by April 2016 the concept of ENS was presented within how to mine bitcoin on my laptop computer the Ethereum Foundation by former Google engineer Nick Johnson. It is built on the foundation of Open Source programming, which means anyone can examine the code. The software code is published in the open, on the public blockchain ledger. You can buy ENS on popular exchanges like Binance, HitBTC, BKEX, and Digifinex.

ENS is based on a set of decentralized smart contracts on the Ethereum blockchain. As such, there is no need for centralized operators and systems that DNS relies upon. Similar to how DNS maps a domain name to an IP address, ENS was created to map blockchain addresses to human readable labels. When the ENS DAO was established, ENS domain owners received 25% of the ENS governance tokens ($ENS) based on different factors.

  1. As a result, the company has reached an inflection point where most wallets and influencers support ENS domains.
  2. When you use it to send or receive crypto, the exchange or dApp you use will automatically detect your crypto address.
  3. For example, if you own batman.eth, you can create subdomains such as donate.batman.eth or blog.batman.eth and configure them to take donations or share Batman’s day-to-day activities.

Fractions of the ENS token pool were distributed based on how long a given user owned an ENS domain. To distribute ENS tokens to the community, the developers allocated 25% of the ENS Token supply to users who had already signed up for an ENS domain by Oct. 31, 2021. The ENS is operated by a decentralized autonomous organization (DAO), essentially an organization with no centralized leadership.

Right now, the primary purpose of ENS is to give people and applications an easy way to read and share crypto addresses and make Web3 more digestible. As Web3 matures, it is likely more protocols will be built around ENS. ENS takes the same concept of the Domain Name Service (DNS), which mapped simple website names to their IP addresses, to make crypto addresses easy to read and share.

Nick proposed a smart contract that enables the mapping of memorable names with crypto addresses and other Ethereum identifiers. His proposal would provide improvements over other blockchain naming systems not limited to sub-domains and resolve several resources to a single domain. The primary purpose of ENS is to plot memorable or human-readable names, like “Josiah.eth,” to computer-readable identifiers such as Ethereum, web3 wallets, and crypto addresses. Therefore, ENS links cryptocurrency addresses like “0x816f7d9e7…” with memorable Ethereum domains or names.

Changes to the protocol are governed by the ENS DAO, a Decentralized Autonomous Organization, by way of governance voting. It is not possible for ownership of an ENS name to be infringed or censored as outlined in the ENS DAO Constitution. It is possible to import a DNS name into ENS, so that a .com can make use of the blockchain. In the early days of the Internet, information was queried by using IP (Internet Protocol) addresses. ENS is part of that Infinite Garden ethos, reflecting the “nurture and grow, but do not control”. The core team at ENS Labs was funded through grants, and had no VC investors.

It works similarly to DNS, in that ENS names resolve long random number and letter combinations into human-readable labels. Because this is done on the Ethereum blockchain, it is secure, decentralized, and transparent. From a traditional point of view, usability is the main barrier hindering the mass adoption of web3. For instance, long and complex addresses seem overwhelming and inconvenient to new crypto users.

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