You are likely already familiar with the Domain Name System (DNS). The system acts like a directory for the internet and allows us to search for websites by referencing their domain names instead of a random series of letters and numbers. DNS greatly improved the user experience on the internet and without it, it would be impossible to remember our favorite websites. The Ethereum Name Service (ENS) is an evolution of the DNS idea.
Web 2, our current iteration of the internet, enabled computers to read data from each other and write data to each other. It’s great for sending text, images, and videos but it’s limited in its ability to transfer value and ownership rights. Since the Ethereum blockchain is a public ledger that accounts for every penny and asset on the network, it is now possible to transfer value instantly without concerns of accounting fraud and without the need for a bank. Computers can now read, write, and execute transactions on the internet without the help of a third party. The integration of money and assets into the very fabric of the internet is evolving the network to Web 3 where transactions are as easy to send as any other messages online. This is where ENS comes in.
As far as Ethereum is concerned, all that matters are changes in balances and the sender and receiver of whatever object is being transferred. Like all other newly built protocols, the identifiers for the receivers and senders look like a series of numbers and letters. If you have a Crypto wallet then you have likely seen an example of this in your wallet id.
The wallet ID is displayed in the grey rectangle.
If you want to receive money you have to share the series, and if you have to send money, then you have to type the series in, paste it in, or scan the QR code. If you mess up, then your funds will be gone forever and there is nothing anyone can do about it. DNS made navigating to websites user friendly and ENS will make finding transacting entities on the Ethereum network user friendly.
Instead of typing in the series of numbers and letters, ENS enables users to assign a human readable name to wallets and smart contracts, making them easier to find and mitigating transfer risks.
For example the ID for the Mix3d community wallet is 0x79c9FDE84f44270444b7e0b4D9a962117831d2Ce but you can search for the wallet by typing Mix3d.Eth into any Ethereum wallet. All wallets on the Ethereum network end in .eth following the naming convention set by DNS for websites like .com, .net, and .org.
ENS can connect to existing domain names making it easy for website developers and owners to enable their sites to interact with the Ethereum network.
In short, anyone can use ENS to serve up a website and process transactions with one name.
Recently the ENS team announced that they would allow users to wrap their ENS names into ERC-1155 tokens. The ENS wrapper will enable name owners to issue subdomains to compartmentalize their operations. A state could issue subdomains for government services, informational websites could issue subdomains for different languages, and big brands could issue subdomains for their subdivisions.
In the Mix3d community we plan to issue subdomains for our media, clothing, and development working groups, the domains will appear as Media.Mix3d.Eth, Clothing.Mix3d.Eth, and Development.Mix3d.Eth respectively. The subdomains will allow us to collect funds in one wallet while identifying the revenue generated by each group, which can help us determine the projects to support and the projects to sunset.
If you believe Ethereum will continue to be the go to smart contract platform and you own or manage a business then you should secure your ENS name.
ENS names with numbers ranging from 001.Eth to 10000.Eth are being purchased to match the IDs of NFTs in generative art collections. These buyers are molding digital personas and personal brands. Speculators are buying up the names of famous brands hoping to be bought out once mass adoption forces brands onto the network. The owner of Amazon.Eth recently rejected a 1 million USD offer for the ENS name and the opportunity to pick up names at retail value is quickly evaporating. Grab your ENS name for cheap while you still can.