TL;DR
Ethereum Name Service (ENS) is a naming service designed for Ethereum wallet addresses. The service doesn't stop there, it also serves as a naming service for hashes and other machine-readable identifiers. Data strings are translated into addresses that are easily understood. A similar system is used for websites called the Domain Name System (DNS).
Through Ethereun Name Service (ENS) you can easily purchase names and rent them by the year. Prices of a name are dependent on the length of the name that you want to rent.
As Ethereuem becomes more popular, the internet will shift towards it and continue to build stuff. As a result, Ethereum domains will be high in demand therefore, individuals will be willing to buy any domain names you own on Ethereum.
Introduction
One of the biggest challenges in blockchain is improving upon the ease of use and accessibility. Transferring money to a long and confusing wallet address does not aid in remedying the issue. Hexadecimal strings of numbers and letters can make any new or inexperienced investor experience daunting and confusing. Ethereum Name Service (ENS) wants to combat this by making the wallet address easily readable by allowing anyone to convert their wallet address to a easy to remember and use domain.
What Is Ethereum Name Service?
Ethereum Name Service (ENS) is a open source, distributed, ethereum-based naming system launched in 2017 by Nick Johnson who was from the Ethereum Foundation. ENS was originally part of the Etheruem foundation but spun out to create its own separate organization. Although there is no inventors, it is supported by the Ethereum Foundation, Binance_X, Chainlink, Protocol Labs, and Ethereum Classic Labs.
Ethereum Name Service (ENS) allows users to display their long letter and number public addresses in a simple, text readable way. As a result, it makes it easier for users to read, remember, and share. For example, an Ethereum wallet address may be in this form 0x3HF34HD4DHD8H4f84hf8h8FHF8H48. Instead of sharing or having to copy and paste that long strong, you can buy a domain name from ENS so that your wallet becomes this instead, example.eth. Thus, being much better for the user and readable.
Further, the limitations for ENS far extend just wallet addresses. ENS can also be used for transaction IDs, metadata, and hashes. ENS is comparable to the Domain Naming System (DNS) that currently exists in the internet. The DNS acts as the internet’s phonebook. It takes IP addresses and attaches them to an easy-to-use url like minutecrypto.org. Therefore, ENS can be thought of the DNS but for Ethereum.
As a result of the popularity and rise of ENS, they have launched their own governance token, ENS. ENS has transitioned to a Decentralized Autonomous Orgainzation (DAO). Therefore, any holder of this token automatically becomes a part of the decision making process for ENS.
How Does Ethereum Name Service Work (ENS)?
ENS domain utilizes ERC-721 Non-Fungible Tokens (NFTs) to represent a unique address. You can trade the domain by selling the NFT or transferring it to someone else. Keep in mind that walled addresses and other information are attached to each token, which the owner can easily manage. Top level domains like .eth is owned by a smart contract called a registrar. It controls the creation of subdomains. Thus, creating an .eth domain requires that you interact with the registrar.
In order to purchase an domain name, you can check its availability here and rent it. Initially, popular name domains were auctioned off. The highest bidder who won the domain could then attach addresses, create sub-domains, or rent/sell their domain name. For example, if minutecrypto.eth was won by the highest bidder, they could attach an address to it, they could create a sub-domain such as learn.minutecrypto.eth for free, or sell it.
What Can You Do With Your ENS?
The need for ENS will be obvious if you've ever sent cryptocurrencies to multiple addresses. With ENS, users can turn long numbers into easy-to-remember words, as if they were saving a friend's phone number under their name. Errors are less likely to occur as a result.
In addition to the main domain, ENS domain owners can also create subdomains. They don't necessarily need to be wallet addresses. It could be used to link to a smart contract, transaction, or metadate.
How To Obtain An ENS Domain?
Getting an ENS name today is as simple as heading over to the ENS site and checking the name for availability and registering it. Lets take a look at an example down below.
Head over to the ENS Site
Check For Availability
Next, you can search and check for availabilty. In our case, MinuteCrypto is available and can be registered.
Register and Pay The Fees
Once you click on the domain name, you will see instructions about the time period and the gas fees associated with registering the name. Complete this section then click on Requestion To Register.
That is all. It was as easy as searching up the name and paying the associated gas fees and registrations fees.
How Much Does An ENS Domain Cost?
The cost of an ENS domain can be divided into two parts: auction costs and rental costs. In an auction, the price of an ENS domain name would depend on its popularity. God, Car, and ETH, which are well-known names, usually fetch higher prices, while short, three-letter words tend to go for the most expensive prices. Below is an example of a Domain that sold for quite a large amount in the last 30 days.
Once you obtain the domain, you will need to pay a fee with ETH every year to renew it. The annual renewal rate amounts to $5 for names with 5 characters or more. However, it becomes more expensive with any name with less than 5 words.
ENS Tokenomics
ENS is the governance token of Ethereum Name Service and is used to govern the protocol and influence decisions on pricing its .eth addresses and the price oracle. Token holders can also delegate their tokens to the DAO for voting. The total supply of ENS is 100 million, and the circulating supply is just over 20 million (~20% of total supply) at the time of writing. ENS is distributed as follows:
How To Buy ENS Token?
You can buy ENS on Binance.
Log In/ Create An Account
If you haven’t done so already you can create an account with Biannce. Keep in mind Binance is a KYC platform so you need to provide some form of ID. If you have an account already you can just log in.
Search For ENS
Once logged in click on trade and search for ENS in the search box.
Select Amount and Buy
Once you find the token select the amount you wan t to purchase and select confirm the order.
Final Thoughts
The Ethereum Name Service (ENS) is a naming service for Ethereum wallet addresses. In addition to serving as a name service, the service also serves as a hash service as well as another machine-readable identifier. Addresses are translated into easily understood strings.
ENS seeks to make wallet addresses readable and easier to use. As a result, they will be a focal point for domain names in crypto.
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