Ethereum Name Service: Benefits and How it Works!

In the early days of the internet, it was difficult for people to access websites because they had to remember long strings of numbers called IP addresses. For example if you wanted to access hashnode.com then you would have to type its IP address 76.76.21.21.

In 1983, the Domain Name System (DNS) was created to match IP addresses with easy-to-remember names called domain names.

However, when it comes to cryptocurrencies like bitcoin, people still have to use long and hard-to-remember addresses called wallet addresses to send money to other people. The Ethereum Name Service (ENS) is a tool that makes it easier to send cryptocurrency by allowing people to use human-friendly names instead of wallet addresses.

What is the Ethereum Name Service(ENS)?

The Ethereum Name Service (ENS) is a decentralized naming system that runs on the Ethereum blockchain. It allows users to register and use easy-to-remember names called domains to identify and interact with Ethereum addresses, smart contracts, and decentralized applications (DApps).

ENS domain is a human-friendly nickname for a machine-friendly address.

These names are unique and can be used instead of Ethereum addresses, which are long and complex strings of numbers and letters that can be difficult to remember and share.

ENS names make it easier for people to send and receive cryptocurrency, interact with smart contracts, and access DApps on the Ethereum network. ENS names are also able to work with other protocols and networks, making them a helpful tool for connecting different blockchain technologies.

What are the uses of ENS Domains

ENS domain names can be used for a bunch of things on the blockchain, and here are some of them:

1. Sending and receiving cryptocurrency: ENS domains can be used to transmit and receive cryptocurrencies. Users can send cryptocurrency to an ENS domain rather than a lengthy and complicated Ethereum address.

2. Ethereum Addresses: Ethereum addresses, which are lengthy and complicated strings of numbers and letters, can be identified using ENS domains. People may quickly remember and share their Ethereum addresses with others by using ENS domains.

3. Smart contract interaction: On the Ethereum network, smart contracts can communicate with ENS domains. In smart contracts, the details of the agreement between the buyer and seller are directly encoded into lines of code. These contracts self-execute. People can quickly recall and access smart contracts on the Ethereum network by using ENS domains.

Differences Between ENS and DNS

Both the ENS (Ethereum Name Service) and DNS (Domain Name System) are systems that let users connect internet resources with human-readable names. But there are some significant variations between the two:

Are ENS domains NFTs?

Fundamentally, ENS domains are not NFTs. ENS domains are essentially a decentralized way of mapping human-readable names to cryptocurrency addresses, smart contracts, and other resources on the Ethereum blockchain. ENS domains can be used in a similar way to traditional domain names, but they are stored on the Ethereum blockchain and can be controlled using a smart contract.

NFTs, on the other hand, are a type of digital asset that represents ownership of a unique item. NFTs are often used to represent things like artwork, collectibles, and other items that have value because they are unique or rare.

ENS domain names are not minted in the same way that NFTs are. NFTs are created through a process called "minting," where a unique digital asset is created and added to the blockchain. ENS domain names, on the other hand, are not created as a standalone asset. They are simply a mapping of a human-readable name to a resource on the Ethereum blockchain, such as a cryptocurrency address or smart contract.

To create an ENS domain, a user must go through a process called "registration," which involves submitting a request to register the domain name to the ENS smart contract. If the domain name is available and the registration process is successful, the ENS smart contract will update the mapping to associate the chosen domain name with the specified resource. The ENS domain name is not a standalone asset that is added to the blockchain in this process. Rather, it is simply a way to access and interact with the underlying resource that it is mapped to.

It is possible to use ENS domains in conjunction with NFTs, however. For example, an artist could create an NFT that represents a unique piece of artwork, and then use an ENS domain to point to that NFT and provide an easy-to-remember name for it. In this case, the ENS domain would not be the NFT itself, but it could be used to help access and interact with the NFT.

That said, ENS is a decentralized system that allows users to associate human-readable names with resources on the Ethereum blockchain, improving the user experience and security compared to traditional domain names. It has quickly become popular and widely used.

In conclusion, ENS is a significant development in the cryptocurrency space and a move in the right direction to address some of the most important problems that plague the sector, specifically, user experience. Errors are frequently caused by having to deal with lengthy sequences of random numbers and letters, and in the world of cryptography, errors are frequently very costly. A step toward enhancing the entire user experience is normalizing addresses and presenting them in a comprehensible and welcoming manner, much like DNS did for Internet users.