What is Ethereum Name Service (ENS)?

The Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the Ethereum blockchain. It is designed to map human-readable names like ‘alice.eth’ to machine-readable identifiers such as Ethereum addresses, other cryptocurrency addresses, content hashes, and metadata. ENS operates similarly to the Internet’s Domain Name Service (DNS), but with a decentralized architecture that leverages the security and transparency of the Ethereum blockchain​​​​​​.

How ENS Works

ENS consists of two main components: the registry and resolvers. The registry is a smart contract that maintains a list of all domains and subdomains, storing information about their owner, resolver, and time-to-live for records. Resolvers are responsible for the actual process of translating names into addresses. ENS uses a hierarchical naming structure, allowing domain owners to have full control over their subdomains. For example, if you own ‘example.eth,’ you can create and configure subdomains like ‘wallet.example.eth’ or ‘website.example.eth’​​.

Use Cases of ENS

ENS simplifies the user experience in the Ethereum ecosystem by allowing people to use easy-to-remember names instead of long, complex hexadecimal addresses. This reduces the likelihood of errors when sending transactions or interacting with smart contracts. ENS can also be used to create more readable and memorable names for decentralized websites, making it easier for users to navigate the decentralized web​​.

Obtaining an ENS Domain

To obtain an ENS domain, you can check its availability and rent it on a yearly basis. Popular names were initially auctioned off, but now you can register available names directly. Once you own a domain, you can attach addresses, create subdomains, and even sell or transfer your domain if desired. The cost of an ENS domain includes auction costs (if applicable) and annual rental fees, which vary depending on the length and popularity of the name​​.

ENS Governance

ENS has launched a governance token as part of its transition to a decentralized autonomous organization (DAO). This allows token holders to participate in decision-making processes and contribute to the development and governance of the ENS ecosystem​​.

Conclusion

The Ethereum Name Service is a crucial component of the Ethereum ecosystem, providing a user-friendly way to interact with Ethereum addresses and decentralized applications. Its decentralized nature ensures security and transparency, while the governance model empowers the community to shape its future direction.

FAQs

1. What is the Ethereum Name Service (ENS)?
   • ENS is a decentralized naming system that maps human-readable names to machine-readable identifiers on the Ethereum blockchain.
2. How does ENS work?
   • ENS uses a registry and resolvers to map names to addresses. Domain owners have control over their subdomains and can configure them as needed.
3. What are the use cases of ENS?
   • ENS is used for simplifying transactions, creating readable names for decentralized websites, and improving the overall user experience in the Ethereum ecosystem.
4. How can I obtain an ENS domain?
   • You can check the availability of a domain and rent it on a yearly basis. Popular names were initially auctioned, but now you can register them directly.
5. What is the governance model of ENS?
   • ENS has transitioned to a decentralized autonomous organization (DAO) with a governance token, allowing token holders to participate in decision-making processes.

About Zerocap

Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets with industry-leading security, contact our team at [email protected] or visit our website www.zerocap.com

DISCLAIMER

This material is issued by Zerocap Pty Ltd (Zerocap), a Corporate Authorised Representative (CAR: 001289130) of AFSL 340799. Material covering regulated financial products is issued to you on the basis that you qualify as a “Wholesale Investor” for the purposes of Sections 761GA and 708(10) of the Corporations Act 2001 (Cth) (Sophisticated/Wholesale Client). This material is intended solely for the information of the particular person to whom it was provided by Zerocap and should not be relied upon by any other person. The information contained in this material is general in nature and does not constitute advice, take into account the financial objectives or situation of an investor; nor a recommendation to deal. Any recipients of this material acknowledge and agree that they must conduct and have conducted their own due diligence investigation and have not relied upon any representations of Zerocap, its officers, employees, representatives or associates. Zerocap has not independently verified the information contained in this material. Zerocap assumes no responsibility for updating any information, views or opinions contained in this material or for correcting any error or omission which may become apparent after the material has been issued. Zerocap does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Zerocap and its officers, employees, representatives or associates do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This is a private communication and was not intended for public circulation or publication or for the use of any third party. This material must not be distributed or released in the United States. It may only be provided to persons who are outside the United States and are not acting for the account or benefit of, “US Persons” in connection with transactions that would be “offshore transactions” (as such terms are defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). This material does not, and is not intended to, constitute an offer or invitation in the United States, or in any other place or jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. If you are not the intended recipient of this material, please notify Zerocap immediately and destroy all copies of this material, whether held in electronic or printed form or otherwise.
 Disclosure of Interest: Zerocap, its officers, employees, representatives and associates within the meaning of Chapter 7 of the Corporations Act may receive commissions and management fees from transactions involving securities referred to in this material (which its representatives may directly share) and may from time to time hold interests in the assets referred to in this material.  Investors should consider this material as only a single factor in making their investment decision.