What is Ethereum Name Service (ENS)?

Introduction

Just imagine, you’re trying to transfer some money, but you can’t recall the account number. One wrong digit and boom! You have sent money to the wrong account. 

In traditional banks, when such mishaps happen, you get your money back but now re-imagine this situation in the crypto world. Scary, right? 

We all know that mistyping wallet addresses is one of the most common ways to losing crypto and we can all agree that long wallet addresses are a bit annoying and confusing to remember. 

However, an innovative solution named Ethereum Name Service (ENS) has stepped in to address this issue. 

Let’s understand more about ENS.

What is Ethereum Name Service (ENS)?

ENS (Ethereum Name Service), is a decentralised domain name system (DNS) designed to offer a user-friendly and easily readable alternative to Ethereum addresses.

In essence, ENS acts as a domain registrar on the Ethereum blockchain, converting addresses into names that are more memorable.

This feature enhances user interactions by substituting long and intricate hexadecimal strings with human-readable names, streamlining the tasks of sending and receiving funds within the Ethereum network.

Users have the option to secure domain names through an auction process, mirroring the conventional practices of traditional DNS. Once successfully registered, these domain names become distinct assets on the Ethereum blockchain, owned and managed by the winning bidder.

How does ENS work? 

Managing transactions on the blockchain is tricky. It involves the tedious task of sending and receiving funds. Similarly, the process of copying and pasting lengthy wallet addresses, followed by double-checking for accuracy, can be quite repetitive. Ethereum Naming Service (ENS) gave the solution to simplify these tasks.

Consider ENS as the Web 3 version of the usual Domain Name Service (DNS) we use in Web 2. For example, you don’t need to type a complex address  like 108.44.3.201 to visit the ChainTech website. You can simply type chaintech.com, making it more memorable and convenient for everyday use.

ENS operates similarly. Instead of dealing with lengthy wallet addresses like “1Lbcfr7sAHTD9CgdQo3HTMTkV8LK4ZnX71,” you can easily acquire an ENS, such as chaintech.eth. With this ENS, you can conveniently send & receive cryptocurrencies. No need to remember complex combinations of letters and numbers; ENS simplifies the process, making it much more user-friendly.

Features of ENS 

Human-Readable Names:

ENS simplifies the complexity of crypto wallet addresses by giving human-readable names. Instead of dealing with long strings of characters, users can effortlessly remember, share, and transact using a unique ENS name. This feature bridges the gap between blockchain technology and everyday users, eliminating the need for memorising long addresses.

Decentralisation and Security:

ENS ensures that ownership and control of names are distributed across the network. This decentralisation prevents any central authority from censoring or manipulating ENS names, providing users with a secure and decentralised online identity.

Ease of Access:

ENS simplifies the process of accessing decentralised applications and other web3 apps. Instead of manually entering lengthy wallet addresses, users can seamlessly connect with applications using their domain or subdomains, streamlining the user experience.

Integration with Other Services:

Once registered, an ENS name can be used across different applications for various purposes, such as receiving payments, accessing decentralised websites, or participating in blockchain-based games. ENS offers a unified solution for managing online presence.

Flexibility and Customisation:

ENS provides users with the flexibility to customise domain names and associated services. Users can add subdomains, redirect to external URLs, and attach essential information like email addresses or social media profiles to their ENS name. This customisation feature empowers users to create a distinct and personalised online presence within the Ethereum ecosystem.

Pros & Cons of ENS 

Pros:

User-Friendly Addresses:

ENS provides human-readable names for Ethereum addresses, simplifying interactions within DApps.

Subdomain Control:

Users have full control over subdomains, offering flexibility in managing different addresses under a primary domain.

Traditional Domain Integration:

ENS seamlessly integrates with domains like .com, .org, or .edu, enabling easy transactions from Ethereum DApps.

No Asset Requirement:

ENS registration doesn’t demand specific assets, ensuring a low entry barrier for users.

Cons:

Annual ETH Fee:

ENS incurs an annual ETH fee, influenced by domain length. Advance payments are available, but consider ETH’s USD price during volatility.

Token Utility Limits:

ENS token usage is confined to voting and governance. Possession isn’t obligatory for domain creation.

Competitors of ENS 

Unstoppable Domains:

Unstoppable Domains offers blockchain-based domain names for simplified crypto payments, decentralised websites, and enhanced digital identity. Users purchase a one-time domain for human-readable names.

Handshake:

Handshake is a decentralised naming protocol that challenges traditional Certificate Authorities and naming systems. Peer validation and management of the root DNS naming zone contribute to its permissionless nature.

ESF Tools:

ESF Tools provides a platform to buy and sell subdomains of ENS top-level domains. Subdomain owners enjoy complete control, while top-level domain owners maintain domain authority. Unique features include NFT collection tie-ins for subdomain minting.

Conclusion

In the crypto world, where errors can be irreversible, the Ethereum Name Service (ENS) emerges as a game-changer. 

As blockchain adoption expands, ENS stands ready to deliver secure and intuitive domain solutions, adapting to technological advancements and community requirements. The user-friendly naming system not only simplifies transactions but also creates opportunities for professionals and enthusiasts entering the blockchain ecosystem.

ENS is expected to be a big part of the future of blockchain and cryptocurrencies. People and businesses that get involved early on, including brands and professionals, are set to grow quickly and achieve new goals.