{"id":151446,"date":"2024-01-16T13:56:35","date_gmt":"2024-01-16T13:56:35","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=151446"},"modified":"2024-01-16T20:47:49","modified_gmt":"2024-01-16T20:47:49","slug":"ethereum-name-service-ens","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/ethereum-name-service-ens","title":{"rendered":"Ethereum Name Service (ENS)"},"content":{"rendered":"

What is Ethereum Name Service (ENS)?<\/span><\/h2>\n

The Ethereum Name Service (ENS) is a decentralized<\/a> domain name system<\/a> (DNS) that provides a user-friendly and human-readable alternative to Ethereum<\/a> addresses.<\/p>\n

At its core, ENS operates as a domain registrar on the Ethereum blockchain, translating addresses into more memorable names.<\/p>\n

This functionality improves the user experience by replacing lengthy and complex hexadecimal strings<\/a> with human-readable names, simplifying the process of sending and receiving funds on the Ethereum network.<\/p>\n

Users can register domain names<\/a> through an auction process, similar to traditional DNS practices. Once registered, these domain names become unique assets on the Ethereum blockchain, owned and controlled by the successful bidder.<\/p>\n

Techopedia Explains<\/h3>\n

Launched on May 4, 2017, by Nick Johnson and Alex Van de Sande from the Ethereum Foundation (EF), the ENS system mirrors the structure of the traditional DNS used on the internet.<\/p>\n

The decentralized DNS supports various top-level domains<\/a> (TLDs), enabling users to choose names like “.eth” or “.xyz” based on their preferences. For example, Ethereum co-founder Vitalik Buterin<\/a> can utilize his ENS domain “Vitalik.eth” instead of the traditional string of characters that accompanies standard wallet<\/a> addresses.<\/p>\n

A key advantage of the ENS is its decentralized nature, providing censorship resistance and eliminating the risk of domain seizures or manipulations by a single authority, unlike traditional domain registrars.<\/p>\n

Additionally, ENS provides a robust infrastructure for developers<\/a> to integrate domain names into decentralized applications<\/a> (dApps). This integration allows users to interact with blockchain-based applications using more intuitive and recognizable domain names.<\/p>\n

Like other decentralized platforms deployed on Ethereum, the domain system is powered by a utility token<\/a>. This ERC-20<\/a> token is essential in facilitating various functions, including registrations and interactions within the system.<\/p>\n

History of Ethereum Naming Service<\/span><\/h2>\n

Since its inception in 2017, the ENS ecosystem has recorded significant events. Here, we delve into a few of them.<\/p>\n

\n\n\n\n\n\n\n\n\n
Year<\/strong><\/td>\nEvent<\/strong><\/td>\n<\/tr>\n
2018<\/strong><\/td>\nIntroduction of ENS tokenomics to shape the economic model of the ENS ecosystem.<\/td>\n<\/tr>\n
2021<\/strong><\/td>\nENS introduced<\/a> a decentralized autonomous organization<\/a> (DAO) for community governance.<\/td>\n<\/tr>\n
2022<\/strong><\/td>\nThe protocol collaborated with Layer 2 scaling solutions<\/a> to enhance scalability.<\/td>\n<\/tr>\n
2023<\/strong><\/td>\nIntroduction of new features like NameWrapper, ENSjs Refactor, and EVM Gateway.
\nLedger Wallet integrated<\/a> the ENS protocol.<\/td>\n<\/tr>\n
2024<\/strong><\/td>\nOngoing developments such as gasless DNS names and advancements in Layer 2 research.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

The ENS Token<\/span><\/h2>\n

The ENS token serves as the native token within the Ethereum Name Service ecosystem. As of January 16, the token’s total supply<\/a> is capped at 100 million, with 30.6 million currently in circulation<\/a>.<\/p>\n

The ENS token holds significant value in the ecosystem, offering various functionalities:<\/p>\n

\"Functionality<\/p>\n

Governance<\/h3>\n

Token holders can actively engage in the governance<\/a> of the protocol. Through decentralized governance, the community gains the authority to propose and vote on upgrades, changes, or additions to the ENS system.<\/p>\n

The weight of a participant’s vote is typically proportional to their ENS token holdings. This ensures a democratic process that empowers stakeholders with a vested interest in the ecosystem.<\/p>\n

Staking for Participation<\/h3>\n

While ENS tokens do not involve the traditional staking<\/a> process, users can express support for specific proposals or changes within the governance framework by utilizing their tokens. This form of staking enables token holders to demonstrate commitment to protocol adjustments or improvements. Staked tokens endorse specific initiatives, contributing to the consensus-building process within the ENS community.<\/p>\n

Registration<\/h3>\n

The ENS token is essential for registering and managing domain names. During the auction process, users bid and pay in ENS tokens to acquire ownership of specific domain names on the Ethereum blockchain.<\/p>\n

Incentive<\/h3>\n

The ENS tokens serve as incentives for individuals or entities operating as registrars within the ENS ecosystem. Registrars<\/a> play a crucial role in assisting users with registering and managing their domain names. In return for their services, they receive ENS tokens.<\/p>\n

Speculation<\/h3>\n

Like other crypto assets<\/a>, the ENS token functions as an economic unit within the ENS ecosystem. The token can be bought, sold, or traded on various cryptocurrency exchanges<\/a>. This allows participants to engage with the token, potentially generating significant returns on investment based on price movements.<\/p>\n

ENS Tokenomics<\/span><\/h2>\n

The ENS tokenomics<\/a> encompasses a strategic allocation of its total supply of 100 million tokens, with specific portions designated for distinct purposes:<\/p>\n