Why ENS (Ethereum Naming Service) has Significance In 2022?

ENS or Ethereum Name Service is the naming protocol of the decentralized internet that aims to establish portable Web 3 usernames. All decentralized apps (Dapps) and blockchain can use ENS.

The blockchain and cryptocurrency sectors are very technical. Thus, it is confusing for first-time users and people who are not techno-savvy. For any crypto transaction, participants need a long public wallet address.

This public wallet is composed of a long string of letters and digits. Another critical point is participants have different public addresses for every cryptocurrency. It is a tedious and confusing task for crypto beginners to manage these public wallet addresses.

Ethereum name service or ENS is a unique concept that aims to create a universal nickname for decentralized websites and public addresses. ENS service would make decentralized finance and the crypto sector simpler for users.

After adopting the ENS, the users can use a single ENS domain like “John. eth” instead of a long string of unreadable credentials. ENS domains can apply to any NFTs and cryptos.

Let us discuss more ENS and how it works.

What is Ethereum Name Service (ENS)?

ENS is a naming protocol built in the Ethereum blockchain. It enables the translation of machine-readable addresses to human-readable nicknames.

For instance, if a person ‘A’ wants to pay person ‘B’ using cryptocurrencies, then person B is required to give his Ethereum public address. It is 42 hexadecimal characters long. This public address might look like

“0xBA25EF3F8B8A186998338A2ADA83755GA2D698E”

With the help of the ENS system, person B can create their nickname with an underlying link for it. Now, person B can share ENS for the execution of the transactions.

Along with Ethereum addresses, ENS creates human-readable domains for websites, crypto wallets, metadata, and content hashes. Under a single nickname, it connects all your addresses and websites for receiving all kinds of NFTs and cryptocurrencies.

ENS is a decentralized and blockchain-secured domain naming service. That means there is no single controlling, regulating authority enhancing its security.

Also Read: Self Sovereign Identity (SSI) — Overview with Advantages — Blockchain Shiksha

How does the Ethereum Naming service work?

Two Ethereum smart contracts are used in ENS. ENS registry is the first smart contract that maintains records of all registered domains. It keeps records of three essential information pieces, like catching time for the documents, the resolver, and the domain owner.

Resolver is the second smart contract that acts as a translator for domain names to machine-readable addresses and vice versa. It acts as a bridge between the domain and corresponding address, website, and users.

ENS app helps those who want to generate their web3 username. Once the desired username is available, users need to follow simple registration steps. After completing the registration process, the domain user can link their websites, crypto wallets, etc.

They can also create multiple sub-domains, like website.john.eth or email.john.eth, for connecting to the same ENS domain.

What is ENS Token?

ENS is not managed like a traditional company hierarchy. It is a fully decentralized and open-source protocol. DAO (decentralized autonomous organization) governs ENS, which leads to ENS Token.

ENS Token governs the ENS DAO’s protocol utility. The token holders have vested the right to vote in the protocols’ future development process, which is an ERC-20 token with a total supply of 100 million coins. Out of 19.6 million coins in circulation, 50% are allocated to ENS DAO, 25% are given to ETH holders, and 25% are with ENS contributors.

Why is ENS outstanding?

In the web3.0 version, Ethereum Name Service is like the Domain Name Service. The difference between ENS and DNS is that ENS is a decentralized alternative for traditional DNS for the internet. ENS eliminates the risks associated with the DNS.

ENS is censorship-resistant and more secure as it is built of blockchain-based Ethereum protocol. ENS is the first service that replaces blockchain and crypto addresses with human-readable nicknames.

These ENS can be used across all Dapps, wallets, and decentralized websites. This system transforms complex strings of characters into simple, short, and human-readable links, which are easier for blockchain beginners.

Final Thoughts: ENS is the rising star on the horizon of Web3.0 and gaining popularity as it creates human-readable nicknames for public blockchain addresses. As ENS is backed by blockchain technology and distributed, it ensures greater security for domain names.

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This post is first published on www.blockchainshiksha.com

Written By: Shubhada Pande