Back in the days, when the Internet wasn’t so mainstream, one of the main problems that users faced was that domain names hadn’t been matched up to internet protocol (IP) addresses.
This made them very unfriendly towards the average person, who had to type in the IP address of the website they wanted to visit, as in to literally type in the numbers.
Unlike traditional IPs, cryptocurrency addresses represent even longer strings of numbers and letters. If a user wants to send another user’s funds over Ethereum’s network, they would have to input the address and make sure that each number and letter is written correctly.
It’s also important to know that, in this regard, blockchain-based technology is very punishing. This is because if you fail to input the address correctly and mistype a letter, the funds you send will be irreversibly lost. There’s no central authority to contact to reverse or refund the transaction — that money is lost.
With this inconvenience, Domain Name Services (DNS) came to life when using the Internet, the Ethereum Name Service (ENS) came to be.
Defining Ethereum Name Service (ENS)
Crypto addresses are long strings of numbers and letters designed to be read by computers. These long addresses have led to confusion and even loss of funds.
The Ethereum Name Service, or ENS, is a distributed technology based on the Ethereum blockchain that provides an elegant solution to long and confusing crypto addresses: one URL, just like a website name or email, that represents a crypto address.
ENS maps the long public address crypto users are familiar with and replaces it with a simple name that is easy to read and easy to remember. Something cumbersome like, “0xDC25EF3F5B8A186998338A2ADA83795FBA2D695E” becomes as simple as “Alice.eth.”
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.
Facts about ENS
- ENS is composed of two Ethereum smart contracts: the ENS registry, which records domain names, and the Resolver, which translates domain names to machine-readable addresses and vice-versa.
- Like in the early days of DNS names, users are rushing to secure their ENS domains before they become unavailable.
- ENS supports .com, .org, .io, .app and more.
- Browsers currently supporting ENS include Brave, Opera, Status (mobile), MetaMask Mobile (mobile) and Puma. ENS will not work on a browser such as Chrome or Safari.
How does Ethereum Name Service work?
An ENS domain name uses ERC-721 Non-Fungible Tokens (NFTs) to represent a unique address. You can trade a domain by transferring or selling the NFT to someone else. Wallet addresses and other information are attached to each token, which is manageable by the owner. A top-level domain like .eth is owned by a smart contract called a registrar that controls the creation of subdomains. If you wanted to create NFTingStore.eth, you would need to interact with the .eth registrar.
To purchase an Ethereum domain name, you can check its availability and rent it yearly. Popular names were, however, initially auctioned off. The highest bidder who won the domain could then attach addresses, create sub-domains, and loan or sell their domain name. For example, if you owned NFTingStore.eth, you could also create learn.NFTingStore.eth for free.
How to get your own ENS domain?
To create your web3 username, you need to have an Ethereum wallet — such as MetaMask — and visit the ENS domains web app. First, search for a domain name. After finding one, you will need to complete the registration process. This includes verifying two transactions from your wallet and paying the annual fee of $5/year, if the name is longer than five characters. Once you have the domain, you can link it with your crypto wallets and websites.
You can also create multiple subdomains like email.rick.eth and website.rick.eth under the same ENS domain. Note that each modification happens directly on the Ethereum blockchain and will incur a gas fee, which may vary depending on the day and time of the day you’re trying to modify your details.
It’s also worth noting that ENS domains are scarce, and the process is very similar to how you would purchase a DNS name. Since this is still a new side of web3, some crypto enthusiasts purchase multiple ENS domains, hoping to flip them later, when more people and brands get into web3. For instance, “exchange.eth” has sold for 6,660 ETH, and “weather.eth” sold for 300 ETH.
Why does ENS stand out?
Ethereum Name Service is essentially the Web 3.0 version of DNS. ENS offers a decentralized alternative to the internet’s traditional DNS, removing the risks associated with its single point of failure.
As a blockchain-based protocol, ENS is inherently more secure and censorship-resistant due to being built on Ethereum. The fact that ENS is essentially two smart contracts enables peak interoperability with other smart contracts and the entire Ethereum ecosystem.
ENS is the first service of its kind for crypto and blockchain addresses. There are other services that are trying to replace the old DNS for the internet, but ENS is currently the only player in its league that offers human-readable nicknames that can work across all your wallets, dApps and decentralized websites. By transforming complicated strings of characters into short and memorable, human-readable links. ENS also serves to make crypto transactions more understandable and accessible for blockchain beginners. Similar services may appear in the future, but as of yet, ENS does not have any comparable rivals that can do all that it does.
Final Thoughts
ENS is a critical evolutionary phase in the cryptocurrency field and a step towards solving some of the pressing issues that riddle the industry — namely, user experience.
Having to deal with long strings of random numbers and letters is oftentimes the reason for mistakes, and in the field of crypto, mistakes are quite commonly very expensive. Normalizing addresses and presenting them in a human-readable and friendly way is a step towards improving the overall user experience the way DNS improved the UX for Internet users.
