Accessing or reading wallet addresses as it is can be complex and time-consuming. This raises the importance of a domain name system, where users can use simple understandable names for searching instead of typing lengthy and complex wallet addresses.
Ethereum Name Service (ENS) is a category of Domain Name System (DNS) utilized in Ethereum blockchain to improve the usability of the network. Continue reading to know more about Ethereum Name Service and its importance in crypto platforms.
What is Ethereum Name Service?
Ethereum Name Service is a domain name system developed on the Ethereum blockchain network allowing users to convert complex wallet addresses and other lengthy data to simple readable names. By creating a user-friendly interface ENS enhances the usability and adaptability of Ethereum blockchain.
Apart from wallet addresses, ENS stores website URLs, social media handles, etc in simpler names. For example, if a user has to search a website, instead of typing the URL he can type the name of a website, making the navigation process easy.
ENS is the native token of the Ethereum Network Service offering token holders the power in governance and decision-making of the platform.
Components of Ethereum Name Service
The Ethereum Name Service (ENS) simplifies blockchain interactions by mapping human-readable names to blockchain addresses. Its key components include a registry, resolvers, and domains managed via smart contracts.
1. ENS Registry
All ENS domain names are recorded in the ENS registry. Linking the wallet address to ENS converts it to a unique identifier that can be easily understood by users.
2. Resolvers
Smart contracts act as the resolvers. They convert the ENS names to metadata and process the transactions.
3. Top Level Domains
Top Level Domains reverses the Ethereum wallet addresses to human-readable names. The reversing makes it easy for identification in wallets and apps.
Key Features of Ethereum Name Service
Ethereum name services replace wallet addresses with human-readable names, making the transaction and navigation process more efficient and seamless. The key features of the platform include;
1. Decentralization
ENS is operated using smart contracts, processing the transaction automatically once the predetermined conditions are met. This eliminates the need for an intermediary, making the platform decentralized.
2. Efficient transactions
Since names are used instead of wallet addresses, the chances of errors are less. This makes the transaction error-free. It eliminates the hurdles of copying and pasting lengthy wallet addresses, making transactions more faster and efficient.
3. Multiple crypto compatibility
Different crypto coins are linked in the Ethereum Network Service, allowing investors to choose from a broad category of assets. Users can access Bitcoin, Ethereum, Non-Fungible Tokens (NFT), and many other coins under a single roof.
4. Interoperability
Ethereum Name Service integrates with different crypto wallets and exchange platforms to facilitate quicker and more efficient transactions. It also allows users to create their own blockchain.
5. Versatility
Apart from names, ENS stores different types of data including URLs of websites, social media profiles, etc.
Benefits of Ethereum Network Services
Ethereum network services offer decentralized solutions, enabling secure smart contracts and dApps. They provide transparency, scalability, and robust support for token creation and blockchain innovation.
1. User friendly
Since the wallet addresses are converted into human-readable names, the process of transaction is easy, making the platform user-friendly.
2. Control over all subdomains
By using the primary domain name, one can access all the subdomains. ENS can also be connected to .com, .org, etc and payments can be transacted to these domains within the Ethereum dApps.
3. Reduces the entry barrier
It is not necessary to hold ENS tokens to register domain names in the Ethereum Name Service. This allows everyone to create a domain name, eliminating the entry barrier.
4. Resistant to censorship
Websites directly linked to ENS domains are difficult to take down, providing users freedom within the platform.
How Does Ethereum Name Service Work?
Ethereum Name Service allows users to register domain names instead of wallet addresses. The domain name consists of a hierarchical name followed by a ‘.eth’ and separated by commas (‘’).
The smart contracts convert the ENS names to their respective valid addresses, allowing registration, renewal, and transfer of the names. When a transaction is enabled in the form of ENS names, the smart contract converts the name to the wallet address and automates the transaction.
Steps Involved in Ethereum Name Service Managing
1. Users register their ENS names using registrar contracts.
2. The person who registers the ENS name is given the ownership, allowing them to manage records, renew names, or even transfer ownership.
3. Users can update data using the ENS resolver contract linked with the ENS name.
4. Owners have to renew their subscriptions annually to remain active.
5. ENS names can be resolved to corresponding addresses using resolver contracts.
6. Users can create and manage subdomains using the primary ENS names.
Limitations of Ethereum Network Service
Ethereum network services face limitations like high gas fees and slower transaction speeds during network congestion. Scalability challenges and energy consumption are also key concerns for users.
1. Requirement of ETH fee
Once registered with the Ethereum Name Service, a user must pay an annual ETH fee. The amount of fees varies according to the length of the domain name. The subscription fee is paid in the USD price of ETH. The gas fees for transactions are also high in Ethereum Network Sevice.
2. Limited use of ENS tokens
The utility of ENS tokens is limited. Currently, these tokens are only used for voting on government proposals.
3. Competition from DNS
The use of conventional DNS continues in major internet platforms, limiting the ability of Ethereum Network Services. ENS is only used among crypto enthusiasts.
4. Layer 2 compatibility
Ethereum Network Service utilizes Layer 2 solutions. It should be compatible with other layers within the blockchain to ensure the smooth functioning of the platform.
Final Thoughts
Ethereum Name Service eliminates the difficulty of managing complex and lengthy wallet addresses while making transactions, by allowing human-readable names instead. It makes the transaction process simple. However, the competition from traditional domain name systems limits their utility among other platforms.