In brief

Ethereum Name Service (ENS) is a service that names wallet addresses, hashes, and other machine-readable identifiers. This service turns hard-to-read data strings into easy-to-read addresses. ENS works similarly to the Domain Name System (DNS) used for websites.

Initially, ENS auctioned popular six-, five-, four- and three-letter domain names to interested users using the Vickrey auction format. Each domain name has .eth at the suffix and can have various cryptocurrency addresses, hashes, and other information attached.

Now you can easily buy domain names without auction and rent by year. The price depends on the length of the name you want to rent. Additionally, if you own the ENS domain on October 31, 2021, you will receive $ENS governance tokens through an airdrop. You can collect tokens until May 4, 2022.

Introduce

One of the biggest challenges of blockchain is making it easier to use and access. If looking at payments in Ethereum (ETH) or Bitcoin (BTC), new and even experienced users may find long wallet addresses impractical and confusing. Computers can easily read hexadecimal strings, but humans can hardly read them. Ethereum Name Service (ENS) solves this problem by allowing people to create website-style addresses that are simpler, easier to remember, and easier to use.

What is Ethereum Name Service?

Ethereum Name Service (ENS) is an Ethereum-based project launched on May 4, 2017 by Alex Van de Sande and Nick Johnson from the non-profit organization Ethereum Foundation. The project allows users to display public long Ethereum addresses in a simple, text-based way. This makes it easier for users to share, use and remember addresses and other data. Turning a machine-readable string of characters like 0xAb5801a7D398351b8bE11C439e05C5B3259aeC9B into human-readable data is an important part of helping blockchain technology become more widely accepted.

ENS is also not limited to wallet addresses. This service can be used to represent transaction IDs, hashes, and metadata, all of which are common in the cryptocurrency world. You may be familiar with the Domain Name System (DNS), a naming system that acts like a phonebook on the internet. DNS takes hard-to-remember IP addresses and appends them to an easy-to-use URL like https://academy.binance.com. In fact, ENS is the DNS of the Ethereum blockchain.

Since then, ENS has launched a governance token as part of its plan to move to a decentralized autonomous organization (DAO). Due to the significant increase in token price, the project has started to gain popularity and attract a lot of interest.

How does Ethereum Name Service work?

ENS domains use an ERC-721 Non-Fungible Token (NFT) to represent a unique address. You can trade domains by transferring or selling the NFT to someone else. Wallet addresses and other information are attached to each token, so they can be managed by the owner. Top-level domains like .eth are owned by a smart contract called the domain registrar, which controls the creation of subdomains. If you want to create BinanceAcademy.eth, you need to interact with the .eth domain registrar.

To buy an Ethereum domain name, you can check availability and rent by the year. However, the original popular names were auctioned off. The highest bidder wins the domain and can then attach the address, create a subdomain, and lend or sell the domain name. For example, if you own BinanceAcademy.eth, you can also create learn.BinanceAcademy.eth for free.

What can you do with ENS?

If you have ever had multiple addresses mixed up when sending cryptocurrency, you will understand the need for ENS. Just like you save a friend's phone number in your contacts, ENS allows users to turn long numbers into easy-to-remember words. This makes for a simpler experience, with less chance of errors.

ENS domain owners can also create subdomains, then assign other data to this subdomain. The domain is also not necessarily a wallet address. You can use domains to redirect to smart contracts, transactions, or metadata.

How to have your own ENS domain name?

Currently, if you want to get an ENS domain name, you just need to check the domain name's availability on https://app.ens.domains/, then register. Let's look at an example of how to get started. First, go to https://app.ens.domains/, connect your wallet, and enter the domain name you want.

You will now see the availability of the domain name you selected. In this case, we can sign up for BinanceAcademy.

After clicking on the name, you will see instructions for registering an ENS domain name. You can choose your subscription period and see estimated costs as well. With ether (ETH) in your wallet, you can follow the three steps shown and require address registration.

In the early days of ENS, popular six-, five-, four- and three-letter names were auctioned off in Vickrey-style auctions. A smart contract ran the entire process in five days. Anyone can join the public auction and try to buy the same domain name. Each interested party submits a transaction containing the maximum price they paid during the first three days of the open auction.

After that, the auction will enter the announcement phase. Everyone will announce the price paid or lose locked ETH, and the highest bidder will pay an amount equal to the second highest price. All those who declared the price paid will receive a refund.

How much does it cost to get an ENS domain name?

The cost of having an ENS domain name can include two parts: auction costs and rental costs. The price of an ENS domain name in an auction depends on the popularity of the name. Recognizable names like God, Car or ETH sell for higher prices, while short three-letter words are often the most expensive. You can see the example below to see some prices to pay for domain names.

Once you own an ENS domain name, you need to pay the annual renewal fee in ETH. Fees are expressed in dollars but converted at the exchange rate provided by Chainlink's ETH/USD oracle. Annual renewals cost $5 for domains with five or more letters, but are more expensive for domains with fewer letters.

How to receive Ethereum Name Service through airdrop?

Everyone who had a .eth address during the snapshot on October 31, 2021 will receive $ENS tokens. You can receive tokens in just a few simple steps. You can receive tokens until May 4, 2022 before the tokens are burned.

1. First, visit ENS Airdrop, then connect your wallet using the [Connect] or [Connect Wallet] button.

2. Select the wallet you want to connect, such as MetaMask, WalletConnect or another provider.

3. Click [Start] to continue.

4. You will now see the [Start your receipt process] option along with the amount you received.

5. Be sure to read the information regarding $ENS, then the Code of Conduct, which you will need to sign with your wallet.

6. You can now choose to delegate token voting rights to yourself or another user.

7. Finally, check the amount being received and the authorized person before clicking [Receive] and pay the gas fee to unlock the token.

summary

In the world of decentralized networks, ENS is a step forward when it comes to creating easier ways to interact with blockchain. Just as we no longer use IP addresses to navigate the web, it can be seen that ENS domains are gradually evolving thanks to their usefulness and increasing popularity. Since ENS conducted the airdrop, the cryptocurrency ecosystem has also shown interest in this project.