Ethereum currently faces a serious problem with scalability and high gas fees, making it difficult to access the blockchain. Web2 requires tedious entry of IP addresses, while digital wallets in Web3 and cryptocurrencies require complex addresses and hashes. Ethereum Name Service (ENS) is the solution to this problem with their advanced services. In this article, you will learn how to create your own ENS domain. It’s easy and simple, so you can get started now!
What is ENS?
Ethereum Name Service – is a distributed domain name system running on the Ethereum blockchain. The project was launched in 2017 by Nick Johnson. Ethereum Name Service converts complex identifiers, such as cryptocurrency wallet addresses and long hex strings of numbers and hashes, into simplified and readable names. ENS makes it easy to exchange and remember Ethereum addresses.
Every time a user wants to receive a payment to an Ethereum wallet, the ENS domain name created is used instead of a complex address. Now you can replace a non-spellable combination of letters and numbers like “Ox4h42j34298sd68” with a convenient ENS-generated name such as johndoe.eth, which makes it faster and easier to remember addresses.
The ENS domain concept is very similar to the Domain Name System (DNS), which simplifies most IP addresses on the Internet by giving them readable names and easy-to-remember URLs. In essence, ENS uses the same operational process in domains, but does so by introducing DeFi cryptotechnology.
DeFi (decentralized finance) — is a term that refers to a variety of financial applications that can be deployed in different blockchains, although they were launched on the Ethereum network. The technology expands the uses of blockchain: more complex financial instruments appear and people are given full control over their assets.
The origins of ENS and DeFi are related to an application based on the Ethereum blockchain known as a smart contract. Smart contracts are digital agreements that are executed based on a predefined set of rules. They are similar to regular physical contracts and govern peer-to-peer interactions on the blockchain, so many DeFi applications, such as the Ethereum Name Service (ENS), apply them to increase use cases.
ENS uses the ERC (Ethereum Request for Comment) token, which acts as the standard used to create and issue smart contracts. Because they use non-interchangeable tokens (NFT), ENS uses ERC-721 tokens. NFTs, unlike cryptocurrencies, are unique and unrepeatable cryptographic tokens. This feature is required by the ENS domain to provide each user with a unique wallet address on an ERC-721 token.
What’s the point of the ENS?
As for DNS names, the top-level domain (TLD) refers to the most recent segment, such as, «.com» . In ENS, domain names are registered with .eth at the end of.
How much does it cost to register an ENS domain?
The shorter the domain name, the higher the cost, so users wishing to purchase popular five-, four- or three-letter domain names will have to pay more. The average cost of an ENS domain is usually $5 per year.
Note: may be charged extra for Ethereum gas.
Are ENS domains secure??
Because ENS domains are built on smart contracts, they are considered more secure than DNS. ENS exists within Ethereum’s easily programmable ecosystem, which allows the domain to interact with other smart contracts. Digital agreements reduce payment delays and error risks, making ENS very secure for users.
What is the difference between ENS and other domain name systems?
ENS outperforms its competitors. The main goal of ENS is to provide a distributed and reliable domain name for Web3 users who interact on the Ethereum blockchain. Whereas most other services, such as Namecoin and Blockstack, attempt to completely replace DNS.
ENS does not share this approach and instead seeks to coexist with the Web2 domain.
Why ENS tokens are needed?
ENS cryptocurrency has always been decentralized and provided an open source service to the community. However, the decision-making power is concentrated in the hands of the core team. To increase autonomy, the developers decided to launch the ENS token in November 2021, through which the community can participate in the development of the project.
Twitter ENS announced the release of their management token, which has been distributed to contributors to the decentralized autonomous ENS organization (DAO) (the DAO is essentially a small online community with a common bank account). The ENS DAO community owns capital in the form of ENS tokens and collectively makes decisions to improve the ecosystem.
Before the token launch on November 9, 2021, 100 million ENS tokens were given to the ENS community. 25% of these tokens were given to registered domain users, and another 25% were given to important domain members. The remaining 50% is in the hands of the DAO community. Currently, the token is traded on several cryptocurrency exchanges and brokers, just like any other cryptocurrency.
Can the ENS be called a good investment?
ENS is a revolutionary project; it is a combination of interchangeable and non-interchangeable tokens. Since all domain names .eth comply with the NFT standard, compatible with ERC-721, they can be traded on many NFT wallets and trading floors.
ENS domain users who managed to register in time received ENS tokens as part of the eirdrop. ENS tokens themselves are interchangeable and can be sold through cryptocurrency wallets and exchange platforms. The ability to sell the domain name for NFT, as well as buy and sell tokens as crypto investments, makes ENS a worthwhile investment.
If you managed to buy ENS token at launch, your investment tripled in the first week of its existence. According to CoinMarketCap, ENS was launched on November 8, 2021, at $25, and in just 48 hours, it rose more than 300%, peaking at $84.
1.Open an online account: this can be done on any exchange where investors can buy ENS.
2.Buy ENS Wallet: ENS can only be bought for the cryptocurrency Ethereum (ETH). You will need to convert your ether to ENS using a decentralized exchange (DEX) such as Uniswap or SushiSwap. To do this, you will need to create a DEX-compatible wallet, such as Coinomi and Math Wallet.
3.Buy ENS tokens: Once you have access to DEX, simply enter the amount of ether you want to exchange into ENS. Once the transfer is complete, you will become a private investor in ENS.
Conclusion on ENS tokens
With ENS, blockchain users can make better and faster payments with cryptocurrencies. The system’s decentralized network provides greater autonomy to market participants and puts control in the hands of the community, so this space can be a profitable investment for long-term returns.
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