People who use the web interact with the Internet Protocol (IP) address, a unique number series that allows web providers to distribute content across the globe. Think of it as the medium for computers to communicate, enabling data transfer to various locations. However, its complexity is not suitable for all users. Therefore, computer scientists developed an easier way to browse online through the Domain Name System (DNS).
A DNS allows users to visit websites using names instead of long numerical labels. Although DNS tech has been here for decades, the web3 space for all its innovations, still continues to use the old system, where users need to paste lengthy public addresses to transact.
One of the common examples is transferring cryptocurrencies in digital wallets, which requires inputting wallet addresses that consist of 26-35 characters. Not only does ENS aim to fix this, but it actually provides an entire solution for the new web3-powered Internet of the future.
What is Ethereum Name Service?
The Ethereum Name Service (ENS) is a blockchain naming technology based on the Ethereum network that allows human-readable names (e.g., Stark.eth) to represent complex machine-readable identifiers like crypto addresses, content hashes, and metadata.
ENS operates on a domain, a web-based address separated by dots to reach a site. It commonly comprises two to three parts: the top-level, second-level, or third-level domains. These hierarchical names not only provide information but also signify ownership. Therefore, owners have the right to take full control of the domain names and create subdomains using simplified addresses.
Although it has similarities with DNS, it differs in terms of structure, capabilities, and limitations. Furthermore, each ENS domain is powered by a non-fungible token (NFT), which makes them verifiably unique.
How Does ENS Work?
One of the ways for web3 to develop is through the Ethereum Name Service, making crypto addresses easier to remember and allowing individuals to have a central hub for their web3 identity.
Registry
The ENS registry has a smart contract containing every registered domain and subdomains with important information, such as owners. Through the data it holds, the mapping of a name to an address becomes possible. Domain owners may either be a user or a registrar, which has the following rights:
- Transfer name ownership to a new address
- Set or change a subdomain owner.
Note that a registrar is a smart contract that has the function of administering subdomains, and a permanent registrar is responsible for controlling its activities. It can be configured within the ENS level and set up by the registry owner.
ENS Domain Names
ENS uses an algorithm called namehash with a specific length of 256-bit cryptographic hashes to process domain names efficiently while preserving their hierarchical properties. Every domain name is represented by a hash, a string of numbers and letters, which makes them unique.
For example, the domain name Stark.eth has its own hash 0x676081eb4267bb21aa; this representation is only used in ENS.
Since every valid domain name has a hash, owners do not have to deal with the machine-readable codes in the ENS domain. They also do not have to worry about deriving the namehash of a subdomain from a domain. Instead, it can be as simple as Stark.eth (domain) to iamstark.eth (subdomain).
Furthermore, all names undergo the process of normalization and validation. In this way, users have a consistent view of the decentralized domain.
$ENS Governance Token
The $ENS governance token is a cryptocurrency created as a way for holders to speak out their recommendations and employ their voting power for the protocol to progress. This is because the protocol is run by a decentralized autonomous organization (DAO), the ENS DAO, which governs the network through the $ENS token.
The ENS DAO enables all token holders to submit proposals or vote on proposals sent by others regarding major decisions that affect the project’s present and future. This includes the allocation of its treasury, adjusting system parameters, etc.
Each proposal typically needs a 67% (subject to change) approval rating requirement to pass. Note that proposals require a minimum of 100,000 $ENS tokens to go to a vote.
In the real world, ENS DAO is represented by the Cayman Islands Foundation, which provides a legal support to the DAO.
Why Should I Buy an Ethereum Naming Service Domain?
ENS has grown over time, with more than two million names created at the time of writing. There are various reasons why people buy them.
Establish a Web3 Identity
An ENS domain name is handy for building a web3 identity since you can link it to all your profiles and projects across different platforms, including social media, email, Discord, and more. Owners can essentially establish their web3 identity across services through their .eth domain.
Furthermore, the web3 community knows that one of the current trends is using NFTs as PFPs (profile pics). These avatar-purposed NFTs can be used to represent you without having to reveal your real-world identity. And you can take this up a notch by using an NFT that you own as pfp of your of .eth domain.
If you spend time exploring NFT communities across Twitter and Discord platforms, you’ll find various NFT enthusiasts with their ENS domain written in their bio. Their strategy is to build credibility without doxxing themselves using ENS and a web3 pseudonym or identity.
Replace Wallet Address with Human-Readable Text
An ETH wallet address typically looks like this: 0xf116938Ee1a7891C1863a8dCE2a558EdB2b3CbF1.
It’s difficult to read let alone remember. Imagine receiving funds through that. Yet it is the norm for the vast majority of users. ENS was created to replace your alphanumeric wallet addresses with simpler ones like Stark.eth, which are so much easier to remember. You don’t need to copy-paste it every time you want to receive crypto.
Note that ENS was designed not only to support cryptocurrencies running on the Ethereum blockchain but also tokens from other networks. Therefore, users can add other wallets such as Bitcoin and DOGE addresses to their .eth domain.
Deploy Decentralized Websites on Ethereum
Today, domains are centralized and owned by registrars like Bluehost and Godaddy. This means that website domains are not truly owned by their ‘owners’ but are merely leased to them (we don’t even own metaroids.com). In theory, registrars can take them away for any number of reasons. The first and most obvious one is if you fail to renew your website.
The second is if you do something that is deemed ‘unacceptable’, especially if there is a court order. That is the current state of the domain system we have today. Now, imagine owning a website that cannot be taken down since it is powered by an immutable ledger like Ethereum. This is one of ENS’s primary characteristics: unstoppable websites.
ENS connects domains to a storage protocol known as the InterPlanetary File System (IPFS), which is a distributed system for storing and sharing content such as files, data, applications, and websites across multiple computers to ensure longevity (and in theory: permanence). The combination of these two forms a new decentralized web, the evolution of the online network we have now.
An ENS domain can map a website’s content hash, which is a unique identifier for online materials (e.g., files) that works similarly to an IP address. The only difference is that thee content hash, as the name implies, is based on content instead of location. Furthermore, website content will be hosted on IPFS instead of centralized platforms like Hostgator.
How to Register a .eth Domain
Registering an ENS domain will only take a few minutes of your time because it works at web3 speed. Here are the steps to follow that could help you have your own .eth domain:
- Go to the ENS website
Type ens.domains on your search bar to directly visit the website. Look at the upper right corner of your screen and click “Go to app.”
- Connect your wallet
Head to the upper left corner of your screen and connect your existing wallet to proceed. If you do not have one, you can create a MetaMask wallet for free. Make sure you own enough ETH to be able to pay for your domain plus gas fees.
- Search a name or an address
You can now type the name or address you want to buy on the search bar. Wait for a few seconds until your screen shows them. ENS details such as its availability and expiration date are also displayed, allowing users to monitor the domain name they are interested in.
- Click on the available .eth domain
Choose a domain and click it to see its information: registration period, amount to pay, gas fee, and the estimated total cost. Note that you can adjust the registration period, and its price will follow accordingly.
If the domain you’re searching for isn’t available, that means someone already bought and paid for it. You might still be able to acquire it from them, all you need to do is head over to the ENS OpenSea page and search for it.
- Request to register
Look at the lower right of your screen and click “Request to Register.” After paying fees, wait for the transaction to complete. Once it is finished, proceed to the next step.
- Wait for 1 minute
The one-minute grace period ensures that no other users have registered for a similar name, protecting buyers from failed transactions. Wait for the Register button to appear.
- Complete Registration
You can find the Register button on the lower right part of your screen. Click it and log in with your wallet. The total payment will appear, giving two options: reject or confirm. Confirm the transaction to proceed and wait until it is finished.
How to Buy an ENS Token
Buying ENS, the protocol’s governance token, is easy and allows one to become somewhat like a shareholder. You should only buy $ENS if you believe in its future.
There are two ways to buy ENS, either through a centralized exchange (CEX) or a decentralized exchange ( DEX). If you’re a beginner, we recommend buying ENS on CEXs like Binance, Huobi, Coinbase, or FTX. All you need to do is head over to each of their webpages and create an account.
Join our newsletter as we build a community of AI and web3 pioneers.
The next 3-5 years is when new industry titans will emerge, and we want you to be one of them.
Benefits include:
- Receive updates on the most significant trends
- Receive crucial insights that will help you stay ahead in the tech world
- The chance to be part of our OG community, which will have exclusive membership perks
