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Investing In Ethereum Name Service (ENS) – Everything You Need to Know

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The Ethereum Name Service (ENS) provides users with the unique opportunity to create a .eth domain name. The protocol leverages NFT (non-fungible token) technology to create secure credentials on the Ethereum blockchain. The goal of the project is to simplify cryptocurrency payments and drive adoption.

What Problem Does Ethereum Name Service Solve?

The Ethereum Name Service (ENS) seeks to alleviate many of the shortcomings of the Internet’s Domain Name Service (DNS). For one, the Ethereum name service provides a more efficient and responsive alternative to centralized web options. The use of blockchain technology improves security as well. All transactions are visible via a blockchain explorer.

Ethereum Name Service (ENS) - Twitter

Ethereum Name Service (ENS) – Twitter

Lack of Privacy

Another major concern that Ethereum Name Service users avoid is the current lack of privacy in the blockchain sector. As of late, a flood of tracking services and forensic firms has reduced user privacy to its lowest levels since the crypto market began 11-years ago. The Ethereum Name Service helps to restore some of this lost privacy through the use of its proprietary technologies.

Censorship

Ethereum Name Service users also eliminate censorship concerns. The centralized web has become increasingly politicized. As such, there has been a strong push to censor more and more data. This unchecked censorship is billed as a form of consumer protection or as a way to reduce misinformation. The reality is that anyone who speaks out against the tech companies’ narratives can find their accounts on the wrong side of this censorship.

Benefits of Ethereum Name Service

There’s a multitude of benefits that Ethereum Name Service users enjoy. For one, the protocol offers users the ability to launch and host decentralized domain names. These names can be anything that you prefer just like a regular website. This domain is then linked to your crypto wallet address or other information stored on a Web3 infrastructure.

Ethereum Name Service (ENS) - Homepage

Ethereum Name Service (ENS) – Homepage

Easier Payments

Since your new domain provides a human-readable crypto address, it makes sending payments a lot easier. For example, you could set up a .eth domain such as Payme.eth. Whenever you request a payment all you need to do is send this address over to the payee. They can place it into their web browser and it will forward their payments directly to your crypto wallet. It’s simple and much faster than attempting to enter a traditional long crypto wallet address.

Reduced Errors

Along the same line of thought, the Ethereum Name Service reduces human error. Anyone who has sent cryptocurrency to the wrong address can attest to the uneasy feeling you get in your gut. For one, there are no refunds on public blockchains. As such, once you send your payment, those funds are gone forever, unless the other party feels kind enough to send your funds back. However, it should be noted that this rarely occurs.

The Ethereum Name Service helps to prevent human errors and streamlines the entire crypto payment process. You can set up your domain to be your name or company to further improve the recognizability of your wallet. This approach helps to drive new crypto adoption because new users are more likely to feel comfortable making a payment in this way versus using the ETH address feature.

Promotions

The Ethereum Naming Service has a variety of exciting promotions going on at the moment. The network recently began its airdrop campaign. This portal sends users the network’s governance token, ENS, directly to their wallet. Airdrops are one of the most popular ways for developers to provide rewards in an efficient way.

Ethereum Name Service (ENS) - Claiming Tokens

Ethereum Name Service (ENS) – Claiming Tokens

Open

ENS Users enjoy an open and permissionless payment experience when they join the platform. The team behind the project continues to promote and support further third-party development. Developers can find helpful resources, support, and guidance from the community.

How Does Ethereum Name Service Work

The Ethereum Naming Service (ENS) leverages the security and programmability of the Ethereum mainnet to bring users a better alternative to the status quo. The network empowers users to buy secure, private, censorship-resistant domains that leverage the full smart contract programmability of the system. Specifically, users can create and issue non-fungible tokens (NFT) that can represent Ethereum addresses as well as web domains.

ENS App

The main way for users to interact with the network is via the ENS App. This Dapp is available as a free download for Smartphone users. Users can pay for an ENS name using the dashboard in seconds. If the name you prefer is already taken, you can buy it on secondary markets like OpenSea. This strategy creates a new .eth domain market for users to profit using.

Ethereum Name Service (ENS) Controller

The ENS Controller is the only person who has the authority to edit an ENS account. The ENS controller can be found in the ENS registry’s owner field. As the controller, you gain the ability to transfer ownership, set a resolver or TTL, and reassign subdomains.

ENS - CoinMarketCap

ENS – CoinMarketCap

ENS Token

ENS is the main governance token for the system. Users who hold ENS tokens gain voting rights via the network’s DAO (decentralized autonomous organization). Additionally, you can use ENS tokens to pay fees and send value. Notably, ENS holders also receive airdrop rewards.

Community Governance

One of the best aspects of the Ethereum Naming Service is its DAO. These systems replace personnel with smart contracts that users interact with to guide the development of a platform. The more ENS tokens a holder holds and the more weight their vote will carry. Community governance systems are very popular in the DeFi realm because they provide a unified way for projects to move forward.

How to Buy Ethereum Naming Service (ENS)

Ethereum Name Service (ENS) is available on the following exchanges:

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.

The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)

BinanceBest for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Ethereum Naming Service (ENS). Use Discount Code: EE59L0QP for 10% cashback off all trading fees. 

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  This exchange currently accepts International & United States residents.

Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.

WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality.  It is the best exchange for residents of India.

The Ethereum Naming Service (ENS) – A Better Way to Crypto

Projects like ENS demonstrate innovative ways that developers seek to make cryptocurrency accessible to everyone. The removal of long Ethereum addresses reduces the technical boundaries for these users. As such, more people feel comfortable making crypt payments. In the end, these developers understand that usability is what determines the success of a cryptocurrency. As such, The Ethereum Naming Service (ENS) plays a vital role in the market at this time.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com