The Ethereum Name Service (ENS) is a naming system for wallet addresses, hashes, and other machine-readable identifiers. It transforms hard-to-read strings of data into easily readable addresses. It functions similarly to the Domain Name System (DNS) used for websites.
Originally, ENS used a Vickrey auction format to auction off popular 6-, 5-, 4-, and 3-letter domain names to interested users. Each name ends in .eth and can be attached to multiple cryptocurrency addresses, hashes, and other information.
Today, you can easily purchase names without an auction and rent them annually. The price depends on the length of the name you wish to rent. Additionally, if you owned an ENS domain before October 31, 2021, you were eligible for an airdrop of $ENS governance tokens.
How Does ENS Work?
One of the biggest challenges in blockchain is improving its usability and accessibility. For example, when making payments with Ethereum (ETH) or Bitcoin (BTC), both new and experienced users find long wallet addresses impractical and confusing. Hexadecimal strings are simple for computers but not intuitive for human users. ENS solves this by allowing anyone to create simple, website-style addresses that are easy to remember and use.
ENS is an Ethereum-based project launched on May 4, 2017, by Alex Van de Sande and Nick Johnson of the Ethereum Foundation. It enables users to display lengthy Ethereum public addresses in a simplified, text-based manner. This makes sharing, using, and remembering addresses and other data much easier. Converting machine-readable numbers like 0xab5801a7d398351b8be11c439e05c5b3259aec9b into human-readable alternatives is a crucial step in enhancing blockchain technology.
ENS isn’t limited to wallet addresses. It can also represent transaction IDs, hashes, and metadata, all common in the cryptocurrency world. If you’re familiar with the Domain Name System (DNS)—the naming system that acts like a phonebook for the internet—you’ll understand ENS. DNS takes hard-to-remember IP addresses and attaches them to user-friendly URLs like https://academy.binance.com. Essentially, ENS serves as the DNS for the Ethereum blockchain.
ENS introduced a governance token as part of its transition to a Decentralized Autonomous Organization (DAO). Due to significant token price increases, the project has gained considerable attention and popularity.
Understanding ENS Domains and NFTs
ENS domains use ERC-721 non-fungible tokens (NFTs) to represent unique addresses. You can trade domains by transferring or selling the NFT to others. Each token is attached to wallet addresses and other information, managed by the owner. Top-level domains like .eth are owned by smart contracts called "registrars," which control the creation of subdomains. If you want to create BinanceAcademy.eth, you need to interact with the .eth registrar.
To purchase an Ethereum domain, you can check its availability and rent it annually. However, popular domains were initially auctioned. The highest bidder in an auction can attach addresses, create subdomains, and lend or sell their domain. For example, if you own BinanceAcademy.eth, you can also create learn.BinanceAcademy.eth for free.
If you’ve ever been confused by multiple addresses when sending cryptocurrency, you’ll appreciate the need for ENS. Just as you save a friend’s phone number under their name, ENS lets users turn long strings of numbers into memorable words. This creates a more straightforward experience with fewer errors.
Owners of ENS domains can also create subdomains and assign other data to them. It doesn’t have to be just a wallet address. You can use it to directly link to smart contracts, transactions, or metadata.
👉 Explore more about managing your digital assets
How to Register an ENS Domain
Getting an ENS domain is simple: check its availability at https://app.ens.domains/ and register. Here’s a step-by-step guide to get started:
- Go to
https://app.ens.domains/. - Connect your wallet.
- Enter the domain name you’re interested in.
You’ll see the availability of your chosen domain. For example, you might register BinanceAcademy.
After clicking on the name, you’ll see instructions for registering the ENS domain. You can choose the registration period and see the estimated cost. If you have ETH in your wallet, follow the three steps shown to request registration.
The Evolution of ENS Auctions and Pricing
In the early stages of ENS, popular 6-, 5-, 4-, and 3-letter names were auctioned using a Vickrey auction format. A smart contract handled the entire process over five days. Anyone could participate in the public auction and try to purchase the same domain. Interested parties would send a transaction containing their highest bid during the first three days of the open auction.
The auction then moved to a reveal phase. Participants had to either reveal their bid or lose their frozen ETH. The winner paid the amount equivalent to the second-highest bid. All revealed bids received refunds.
The cost of an ENS domain can include two parts: the auction cost and the rental cost. In auctions, the price of an ENS domain depends on its popularity. Well-known names like God, Car, or ETH sell for higher prices, and short three-letter words are typically the most expensive.
Once you own an ENS domain, you need to pay an annual renewal fee in ETH. The fee is denoted in USD but converted using the ETH/USD exchange rate provided by a Chainlink oracle. For names with five or more characters, the annual renewal fee is $5. Names with fewer characters have higher renewal fees.
Claiming ENS Governance Tokens
Any individual who owned a .eth address during the snapshot on October 31, 2021, was eligible to receive $ENS tokens. You could claim your tokens by May 4, 2022; otherwise, they were subject to burning. Here’s how the process worked:
- Go to the ENS airdrop page and connect your wallet using the "Connect" or "Connect Wallet" button.
- Select the wallet you wanted to connect, such as MetaMask, WalletConnect, or another provider.
- Click "Start" to continue.
- You would see "Begin Your Claim Process" and the amount you could claim.
- Read the explanatory information about $ENS and the Constitution, which required your wallet signature.
- You could choose to delegate your tokens' voting rights to yourself or another user.
- Finally, review your claim amount and delegation, click "Claim," and pay the gas fee to unlock your tokens.
The Future of ENS
In the world of decentralized web, ENS represents a significant step forward in creating user-friendly ways to interact with blockchain. Just as we no longer use IP addresses to browse the web, we may see increased use of ENS domains due to their utility and growing popularity. Since the project’s airdrop, interest in ENS within the cryptocurrency ecosystem has risen substantially.
👉 Learn advanced strategies for blockchain naming
Frequently Asked Questions
What is the main purpose of ENS?
ENS simplifies cryptocurrency transactions by replacing complex wallet addresses with human-readable names. This reduces errors and improves usability when sending or receiving digital assets.
Is an ENS domain an NFT?
Yes, each ENS domain is represented as an ERC-721 non-fungible token (NFT). This means you can buy, sell, or trade your domain on NFT marketplaces just like any other digital collectible.
Can I create subdomains with my ENS domain?
Absolutely. If you own a primary ENS domain (e.g., myname.eth), you can create unlimited subdomains (e.g., pay.myname.eth or blog.myname.eth) at no additional cost, assigning them to different addresses or contracts.
How much does it cost to maintain an ENS domain?
For domains with five or more characters, the annual renewal fee is $5 worth of ETH. Shorter domains (3-4 characters) incur higher fees due to their scarcity and demand.
What happens if I don’t renew my ENS domain?
If you fail to renew your domain, it eventually expires and becomes available for others to register. Always ensure timely renewal to maintain ownership of your digital identity.
Can I use ENS with blockchains other than Ethereum?
While ENS is built on Ethereum, its domains can be used to store addresses for various blockchains, including Bitcoin and Litecoin, through multi-coin support, making it a versatile naming solution.