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An Introduction to Ethereum Name Services (ENS) – NFT News Today

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There were 437,000 new ENS domain registrations in September 2022, generating more than $5.5 million in revenue. Betting on Ethereum’s bright future, buyers invest in these new types of web domains with the intention of selling them at high prices to companies that will inevitably need to do business in a decentralized world. On the secondary NFT marketplace OpenSea, which accounts for 97% of all ENS salesThree- and four-letter ENS names find buyers at very high prices, such as 555.eth, which recently sold for $150,000.

What is Ethereum Name Service (ENS)?

ENS functions similarly to DNS (Domain Name Service). Thanks to DNS, we don’t have to type the IP address when we want to visit a website. Instead, we search or type in the name because DNS links IP addresses to human-readable domain names.

So does the ENS; It maps long wallet addresses with easy-to-read names. As a result, sharing crypto addresses becomes user-friendly.

ENS is built on Ethereum and is meant to be a decentralized version of the Internet. So, you can create secure, private and censorship-resistant websites, as well as upload them to IPFS.

ENS does not intend to replace DNS but to extend it. If you own a DNS domain name, you can also use it with ENS. Although ENS’s native name suffix is ​​.eth, it also supports many DNS names such as .com, .org, and .app.

How does the ENS work?

Similar to DNS, ENS has a hierarchical system that allows domain owners to issue and control any number of subdomains and enables the use of easy-to-read names.

It is basically two smart contracts. The first is the ENS Registry, a database that stores and records all domains and subdomains and other domain owner details. Here, the owner can be the user of a crypto address or other smart contract that gives the right to issue registry subdomains.

When a domain name is requested, this database requests a second smart contract, solver. This is the part responsible for converting machine-readable addresses into names. Hence, as a result of the domain request, it provides the user-friendly version of the converted address.

Registration and transfer of ENS name

You can use the ENS app to search, register and manage ENS domains (.eth). You need a non-custodial crypto wallet to connect to applications like MetaMask. Domains must have sufficient funds to cover annual fees, transaction costs and Ethereum gas fees. The annual fee depends on the number of characters in the name. At the time of writing, four-letter names cost $160/year, while three-letter names cost $640.

A domain owner can transfer the main domain or subdomain. ENS names are actually ERC-721 non-fungible tokens, so you can transfer them to another wallet address as soon as you send any NFT. Since ENS names are NFTs, you can also trade them on the NFT Marketplace

ENS DAO and ENS Token

ENS is an open and public protocol developed by a non-profit that prioritizes community-driven decisions It is managed through a DAO. Community members vote on proposals via Snapshot and can delegate their voting power to the Tally platform.

A tangible entity, the ENS Foundation, represents the DAO in the physical world. The foundation was co-founded by Nick Johnson, Brantley Milligan and Kevin Gasper.

ENS is the DAO’s governance token that launched in November 2021 For a proposal to pass, 100,000 ENS tokens must be voted The primary tasks of ENS holders include controlling the price of .eth and deciding how to use funds from the community’s coffers.

There will be a total of 100 million ENS tokens with the following allocations:

  • .eth domain holders: 25%
  • Community Contributors and Launch Advisors: 25%
  • Community Treasury: 50%

The current circulating supply is 20,244,862 ENS.



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