Ethereum Name Service (ENS) is a domain naming service designed especially for the Ethereum network and focused on Web 3.0 projects. ENS helps assign domain names to individual users’ or projects’ cryptocurrency wallets.
What is Ethereum Name Service?
ENS follows a similar concept to DNS, only making the necessary adjustments to fit the needs of Ethereum network users. Its goal is to make Ethereum’s web easy and more efficient for anyone to access, just like DNS simplifies access to the internet.
The most fundamental goal of ENS at its launch was to translate/convert complex blockchain identifiers like wallet addresses, hashes, and metadata into simple, readable names or domains. Remember, crypto addresses are often very long and cumbersome to remember. ENS brings the much-needed solution by changing the entire address into a short, very memorable name.
For instance, ENS can map the name ‘John. eth’ to a machine-readable language like “8g978dl39ji9xl.” The entire idea of this conversion is to ensure ease when dealing with wallet addresses. Basically, rather than users giving complex wallet addresses, they can use their domain names to complete transactions.
The idea of ENS was proposed by Nick Johnson in 2016 but was actualized in May 2017. Some say ENS was one of the earliest Ethereum-based NFTs since it came way earlier than Cryptokitties.
In its early day, ENS was mainly a project of the Ethereum foundation. However, later ENS spun off to become an independent network and deliver services more efficiently.
ENS launched its native token through an airdrop in November 2021, and only one year after its launch, its garnered vast popularity in the crypto community. Despite the extended adoption, this platform was vastly criticized in early 2022 with claims that its maker sent many homophobic tweets.
This network currently boasts support from Binance_X, Ethereum Classic Labs, Ethereum Foundation, Chainlink, and Protocol Labs. The founding team behind ENS involves executives from most companies backing them.
Why use ENS?
Why do we need a DNS service provider in the blockchain space? Even though not fully adopted, it plays and will play a massive role in simplifying access to the web 3.0 landscape.
ENS helps assign domain names to your crypto asset wallets. Through such domain assignments, any crypto trader will have an easier time trading or using funds in their wallets.
At the moment, copy and paste is the primary system used by investors when writing down the crypto address to send funds. However, ENS introduces a new approach in blockchain where you dont need to risk errors with manual writing or copy and paste. Instead, the short name has the address record.
One ENS can support more than one crypto wallet address. Your domain name can allow you to have different addresses where you can store assets.
Typically, in the blockchain landscape, you often need multiple wallets to have the capacity to hold various assets. The name service lets you get all your relevant blockchain addresses under one domain. Simply put, those using ENS domain on browsers have a direct website. Applications can detect the crypto address directly from the ENS site when sending their crypto.
With ENS, you can also register your DNS names. For instance, if you own a DNS domain for a website hosting your academic certs, you can connect the DNS-registered website. You can link the ENS with the DNS website, Linkedin, Github, and crypto addresses. Have one pseudonym ENS for all your web-based accounts.
How does Ethereum Name Service (ENS) work?
ENS’s functionality is quite similar to that of the DNS. However, in the former’s case, it fosters decentralization, bringing solutions to the web 3.0 landscape. Web and Web 2.0 use DNS for mapping between names and numbers. DNS servers can translate requests/queries for names into IP addresses. ENS functions in a similar manner translating the addresses to names.
To function correctly, the ENS draws the efficiency of two smart contracts, Registry, and name contracts. Here is how each of the two contracts functions;
The Registry
The Registry is the smart contract controlling half of how the ENS network operates in offering naming services in web 3. This registry contract is the most vital tool for performing ENS resolutions.
According to their documentation, any ENS lookup always begins by querying the Registry. At the start, an individual must buy domains. Persons who buy domains are called registrants.
The Registry keeps the list of registrants with the domains. In the list, this Registry records necessary details like the owner and TTL for each and even the resolver. These details in the list can only be changed from the Registry.
The owner of a domain can transfer/sell it to another owner. The Registry has other tasks like recording, tracking, and monitoring persons registered for the domains. Registrars are a class of smart contracts tasked with allocating subdomain names.
The resolver: the names and Namehash
The resolver is simply the tool that converts domain names into addresses. The name is the digital identifier of a domain, like ‘john.eth.’ It’s always a name, followed by a dot, then the second label. To create such names, This network leverages Namehash.
Namehash is simply deriving hash from names while keeping the necessary hierarchical properties. Due to resource constraints, normal ENS will often work using a 256-bit cryptographic hash. A cryptographic hash is a cryptographic address representing a particular ENS name. For instance, Danny .eth can be translated to 0x787192fc5378cc32aa956ddfdedbf26b24e8d78e40109add0eea2c1a012c3dec.
The namehash process allows ENS to generate the long cryptographic address. Namehash has a sub-process called UTS-46 normalization in this process, which refers to the normalization of the names.
The process of namehash also always follows the normalization of names, using a technique called UTS-46 normalization. UTS-46 normalization equally treats every character in the name. This normalization process involves removing invalid characters and standardizing the upper and lower cases. Normalization ensures that everyone can get a similar view of the ENS.
The combination of the two contracts, i.e., the registry and name/namehash, helps in issuing the domain names to applicants and generating addresses from the domain names.
What are the uses of ENS?
Yes, the blockchain landscape needs a DNS service provider like ENS. The efficiency brought through the blockchain ecosystem by itself is excellent. However, the ENS service helps provide in the delivery of services and also applications of blockchains. There are currently several top use cases associated with ENS in the blockchain space. Among these use cases include;
Transfer crypto and NFT
The first and most vital role of the ENS is simply sending and receiving blockchain-based assets. As it was highlighted earlier, the ENS simplifies the long Ethereum addresses.
The very long alphanumeric address is integrated into a short name like John or Dan with the .eth or other suffix used. As such, you can add your NFT and crypto assets like BTC, ETH, LTC, and DOGE to your .eth domain. You no longer need to type in the very long code.
Think of the efficiency afforded to crypto investors through this unique service. Let’s say you want to search for a wallet’ 0x71C67EC9.’ You can type ‘Paul .eth’ and get a direct link to the wallet.
Use ENS like NFTs
Another tested and approved use case of ENS concerns NFTs. ENS holders can use these digital systems as NFTs and store them on the NFT marketplace. Therefore, since ENS can be NFT, you can trade and transfer them like other digital assets.
According to their documentation, the NFT support began in 2019 when the ENS .eth registrar migrated, taking the ERC-721 standard. As such, it became possible to transfer the .eth as an NFT.
Essentially, only some ‘none .eth’ subdomains are NFTs. NFT sub-domains only come from domain registrars that support NFT. So, participants need to create ERC-721-compliant subdomains.
Create an ENS sub domain
As mentioned above, users of the ENS network can access their domains. Interestingly, the domain name owners can create and support a subdomain focused on their brand or business. ENS users can create subdomains for their employees.
Managing digital identity and wallet
ENS can also be an excellent tool when it comes to identity management. Remember, you are linking your name to your wallet address. As such, it’s simple for anyone doing business with you to spot your services and send tokens to your wallets. Other use cases associated with these digital assets in the crypto landscape include stabilizing gas charges and validating the ownership of sealable assets.
The governance of Ethereum Name Service
ENS has its governance system, which helps enhance innovation in this network. This governance combines the following:
ENS token
In November 2021, the Ethereum Name Service introduced its native ENS token via an airdrop. This is an Ethereum-based token taking the form of an ERC-20 smart contract. This ERC-20 token helps in governance. Using the tokens, community participants can submit proposals and participate in decision-making through voting.
ENS DAO
The ENS network sets a DAO, which helps in governance. Governed by ENS token holders, this DAO makes the decisions about the network through voting on any proposals.
ENS Foundation
The ENS Foundation has several purposes, including;
- Tax compliance
- To enter into deals with companies
- Limited liability services for DAO participants.
What are the benefits of ENS?
ANS has several benefits that enable most use cases and even increase adoption. Among the benefits of the Ethereum name service, as highlighted earlier, include;
Reducing errors
One of the core benefits associated with ENS is error reduction. The crypto space is prone to errors. For instance, when writing the recipient’s address, an investor can miss one character. The addresses contain many characters, including upper and lower-case letters and numbers.
ENS allows the transacting parties to complete their businesses without making errors. No need for copy and paste addresses. You can send crypto to your wallet just by clicking the ENS.
Moreover, ENS allows people to add multiple addresses. You can have your Ethereum address, stablecoin, and NFT addresses linked under one domain name. This link mitigates any risks associated with copy-pasting the cryptocurrency address.
Immutability
The second benefit associated with ENS is simply immutability. Blockchain is immutable. No one can alter transaction details on the chain.
When bringing DNS services into web 3.0, ENS taps into blockchain’s immutability to offer unalterable transactions. An immutable ENS transaction is autonomously resistant to any form of censorship. Hence, the details cannot be deleted or even restricted. ‘
Furthermore, this DNS service provider collaborated with IPFS to help foster complete protection of the contents in your domain. Due to the partnership, no one can interfere with the details in your domain.
Simple to scan
Any details on the blockchain are always easy to scan, owing to the transparency fostered by these platforms. Etherescan, for instance, makes it easy to look up for contents of Ethereum networks. Etherscan displays addresses associated with transactions. But, if you own an ENS domain name, you can alter some settings on Etherscan so that it displays your ENS name.
Monetize ENS domains
As mentioned above, these assets can take the form of NFT. As such, ENS names have monetary value and can be bought or sold via NFT marketplaces like Opensea and Rarible. Furthermore, in NFT lending platforms like NFTfi, you can use some ENS addresses like collateral.
Many available suffix options
Like DNS, ENS does not just stick to the .eth suffix. It supports several other suffix options like .com, .org, .io, .app, art, and .xyz.
The Partnerships
The network collaborates with man partners like wallets, apps, and browsers to enable the proper delivery of services. The partnerships include Rainbow, Trust wallet, Coinbase, Etherescan, Uniswap, Opensea, Opera, Metamask Extension, Brave, and Status.
Final word
Ethereum name services launched in 2017 to provide names for web 3.0 users. This platform converts short domain names into cryptographic addresses, making it possible to send transactions using simple names. ENS can also act as NFT.
As such, owners can sell it on NFT marketplaces. As the web 3.0 landscape continues expanding, the need for naming services will be vital in all blockchain networks. ENS is setting an excellent foundation for the future of web 3.0 DNS. However, there are other options out there that could serve as alternatives to ENS.
Source: https://crypto.news/ethereum-name-service-what-is-it-and-why-does-it-matter/