Consider having to put in the numerical IP address of a website each time you wanted to see it. Enter 126.96.36.199 to reach NFT, and 188.8.131.52 to reach Google. We no longer need to recall these numerical sequences, however, owing to the Domain Name System (DNS).
Although cryptocurrency and NFTs are considered cutting-edge technologies, they use a search protocol similar to that used in standard IP searches. To send ETH to a friend’s wallet, for instance, you may either scan their QR code or copy their very lengthy wallet address (0x9e735f012db8nb…).
A user of a cryptocurrency wallet cannot move or receive digital assets simply by inputting another user’s name. This practice, however, may change with the advent of Ethereum Name Service (ENS), a blockchain-based service that just registered its one millionth domain name.
What is the Ethereum Name Service exactly?
As with DNS, ENS is a mechanism for associating machine-generated codes with human-friendly names. In contrast to the Domain Name System, the ENS is a completely open, decentralized, non-profit name system that is Web3 compatible. It is powered by the Ethereum blockchain, and domain names registered on ENS are safeguarded by smart contracts.
Users may use ENS to purchase and manage domain names for websites, wallets, non-fungible tokens, and a range of other digital assets. The ENS system is governed by the ENS DAO, which launched in November after the November token sale. Token holders are all shareholders in the ENS project, and as such, they make collective decisions on the project’s rules, regulations, budget, and pricing. Additionally, ENS tokens may be exchanged for other cryptocurrencies and US dollars.
The increasing popularity of ENS
For the ENS community, the year 2022 has already been chaotic. ENS has established itself as the preferred solution for thousands of dApp (Decentralized App) clients, enabling them to entirely migrate to Web3. In April alone, about 163,000 new domains were registered on ENS, and towards the end of the month, the market’s daily transaction volume exceeded that of BAYC NFTs on OpenSea. It did not, however, stop there.
On May 2, ENS reached a new milestone: it created one million names. ENS has dethroned OpenSea as Ethereum’s top gas-burning protocol as a result of this behavior (at the time of publication it was fourth).
Additionally, Dune Analytics reports that the decentralized domain service earned more than $45 million this year. The ENS website has lately suffered a surge in traffic, resulting in several crashes.
There are now over one million active ENS domains, and the network is regularly used to register hundreds of new names.
The most popular ENS domains are those with four or fewer numbers, most likely due to their rarity. There are only 10,000 available, and they sold out in less than six hours after their release. On the secondary market, some have been sold for as much as 90 ETH (about $255,000).
Additionally, four-digit ENS names may match to the token ID of an NFT. “If your Punk [profile picture] is [number] 4000, then you need 4000.eth,” Tommygun.eth announced on April 28 in a Twitter Space sponsored by ENS Consultant 2594.eth.
How can you register a domain name using ENS?
Purchasing a domain name using ENS is as simple as purchasing an NFT. All that is required is that you connect your Metamask wallet to the ENS website. Assume you own an NFT named “Jasmine.” Simply enter the domain name in the ENS website’s search field and click enter. The website will provide domain names that are currently available in relation to your search.
Select a domain name (for example, ‘Jasmine.eth’) and the registration period for the domain (one year, three years, etc). The yearly fee (currently $5/year) will be processed using your cryptocurrency wallet; you can also apply for sub-domains during the registration process. When the transaction is properly completed, you are assigned the [NAME].eth domain.