What is Ethereum Name Service (ENS)?

In the world of cryptocurrency, long and complex Ethereum addresses can be intimidating and prone to errors. This is where Ethereum Name Service (ENS) steps in, providing a simpler and more user-friendly way to navigate the Ethereum blockchain. 

ENS converts these complicated alphanumeric addresses into easy-to-read names like “steve.eth,” making interactions with the blockchain as simple as using a website address.

In this guide, we’ll explore how ENS works, who created it, and why it’s an important tool for making blockchain technology more accessible to everyone.

Key Takeaways:

• Ethereum Name Service (ENS) is a decentralised system that replaces long, machine-readable Ethereum addresses with simple, human-readable names like “yourname.eth.”
• ENS domains can be used for multiple purposes, such as cryptocurrency wallets, decentralised websites, and Web3 profiles.
• ENS is governed by the community, with the ENS token allowing holders to vote on the protocol’s development and future direction.
• ENS is built on Ethereum, using the blockchain’s security and decentralisation to ensure resilience and censorship resistance.
• ENS launched with a widely successful airdrop in 2021, rewarding early adopters with ENS tokens.

What is Ethereum Name Service (ENS)?

ENS is a distributed, open, and extensible naming system built on the Ethereum blockchain. It transforms complex Ethereum wallet addresses like 0x123abc… into simple, readable names like “john.eth.”

This makes it much easier for users to send and receive cryptocurrency or interact with decentralised applications (dApps), reducing the risk of errors when copying and pasting long addresses.

ENS works similarly to the Domain Name System (DNS), which converts IP addresses (e.g., 192.0.2.1) into human-readable domain names like google.com.

ENS does the same thing for Ethereum addresses, making the blockchain more accessible and easier to use.

How ENS Works

ENS operates with two main functions:

1. Forward Resolution: This converts a human-readable name like “jane.eth” into a machine-readable Ethereum address (0x123abc…).
2. Reverse Resolution: This converts an Ethereum address back into a human-readable name and can also associate metadata with it, like a user profile or website.

For example, if Alice has the ENS name “alice.eth,” you can send her cryptocurrency simply by typing that name into your wallet, and the system will route it to her correct Ethereum address behind the scenes.

Who Created Ethereum Name Service?

ENS was originally developed as part of the Ethereum Foundation before becoming a separate project in 2018. Its Lead Developer, Nick Johnson, is a former Google and Ethereum Foundation software engineer from New Zealand. 

The ENS team consists of nine members, including prominent figures like Sergey Nazarov (Chainlink) and Dan Finlay (MetaMask). Together, they manage ENS using a multi-signature system that governs key operations.

Although ENS doesn’t have traditional investors, it is supported by major organisations like the Ethereum Foundation, Binance_X, Chainlink, Ethereum Classic Labs, and Protocol Labs. This backing from well-known entities in the crypto space adds credibility and security to ENS.

What Makes Ethereum Name Service Unique?

ENS is the first project to bring the Domain Name System (DNS) concept to the decentralised Web3 ecosystem. Here’s what sets it apart:

• Decentralisation and Security: Unlike traditional DNS, which is controlled by centralised authorities, ENS is completely decentralised, running on the Ethereum blockchain. This makes it more secure and resistant to censorship or single points of failure.
• User-Friendly Blockchain Experience: Blockchain technology can be technical and difficult to navigate for beginners. ENS simplifies the process by allowing users to replace long wallet addresses with easy-to-remember names. For instance, you could receive ETH, NFTs, or other tokens by using “yourname.eth” instead of a complicated Ethereum address.
• Smart Contract Foundation: ENS is built on two smart contracts. The first one is an ENS registry that records every ENS domain, its owner, and other essential information. The second smart contract is the resolver, which translates names into addresses and vice versa.

Together, these smart contracts allow ENS to function smoothly, ensuring that every name is accurately matched to its respective address or service, whether it’s a wallet, website, or decentralised profile.

How to Get an ENS Name

Registering Your ENS Domain

Anyone can register an ENS name by visiting the ENS app (https://app.ens.domains/). Simply search for the name you want, and if it’s available, you can register it by paying a small fee in ETH. Once registered, the name is yours to manage, and you can link it to your Ethereum address or other blockchain services.

Costs and Expiration

ENS names work on a rental model, meaning that you’ll need to pay to register and then renew the name periodically. Shorter names (e.g., john.eth) tend to be more valuable and more expensive to register than longer names. The renewal process ensures that names that are no longer needed can eventually be reclaimed and reused by others.

ENS Tokens and Governance

In November 2021, ENS launched a retroactive airdrop, distributing its ENS governance token to users who had registered addresses before the token launch. This airdrop was widely successful, and today, ENS token holders have a say in how the protocol is run.

ENS tokens allow holders to vote on key decisions, including:

• Pricing of ENS domains.
• Fee structures for registration and renewal.
• Changes to the ENS price oracle that helps determine the value of certain domains.

ENS has a total supply of 100 million tokens, with around 20 million in circulation. These tokens are distributed as follows:

• 50% to the DAO Community Treasury.
• 25% to .ETH holders (via airdrop).
• 25% to contributors, including core team members and early supporters.

This decentralised governance model ensures that the ENS community has a voice in its future, maintaining the open and user-driven nature of the project.

How is the Ethereum Name Service Network Secured?

ENS is built on the Ethereum blockchain, which uses a Proof-of-Stake (PoS) consensus mechanism to validate transactions and secure the network.

Ethereum is one of the most decentralised and secure blockchain networks in the world, with over 10,000 nodes working to validate transactions and protect against attacks.

Thanks to Ethereum’s decentralisation, ENS is resilient against hacking and censorship. The decentralised structure of the blockchain ensures there is no single point of failure, making ENS a highly secure service for its users.

Real-World Applications of ENS

Simplifying Crypto Transactions

One of the primary real-world uses of ENS is simplifying crypto payments. Instead of using long, complex Ethereum addresses, users can send and receive cryptocurrency by using simple names like “maria.eth.” This reduces the risk of errors and makes the user experience more accessible.

Decentralised Websites

ENS also enables the creation of decentralised websites by linking domains to content hosted on systems like IPFS. These websites are censorship-resistant and do not rely on centralised hosting services, making them an essential part of the decentralised Web3.

For example, a business could use “mybusiness.eth” as its website address, which operates independently of traditional internet infrastructure.

Building Web3 Identities

As more people embrace Web3, ENS domains can serve as digital identities. Users can link their ENS name to their wallets, social profiles, and other services, creating a unified identity across the decentralised web. For instance, having “alex.eth” could act as your identifier for different dApps, NFT platforms, or DeFi services.

Conclusion

Ethereum Name Service (ENS) is making the decentralised web easier to use by replacing long, complex addresses with simple, human-readable names like “yourname.eth.” 

By leveraging Ethereum’s security, decentralisation, and smart contracts, ENS is helping more people access and navigate the blockchain world.

Whether you’re sending crypto, building a decentralised website, or creating your Web3 identity, ENS is a powerful tool that simplifies blockchain interactions. 

With its governance token, decentralised structure, and wide adoption across Web3, ENS is becoming a crucial piece of infrastructure for the decentralised internet.

Further reading: Visit our coin guides to learn more about crypto!