Crypto addresses are complicated, thanks to them being a lengthy string of letters and numbers which are read by computers. As obvious, such long addresses not only lead to confusion but the loss of money as well. This is where ENS domains NFT comes to the rescue.
What is the ENS domains NFT?
ENS or Ethereum Name Service refers to an Ethereum-based distributed technology that serves as a simplified solution to elongated and complex crypto addresses in the form of a URL that displays a crypto address. As each one is a non-fungible token, it can be minted and sold similarly to other NFTs that are rare blockchain-oriented tokens that prove ownership.
ENS domains NFT initially began in early 2017; however, in 2018, it emerged as a separate organization. It is managed by Singapore’s non-profit, True Names LTD.
The domains were endorsed by popular rapper Jay Z who purchased hov.eth as his ENS name.
ENS domains are the new NFT make it play
If Jay Z bought hov.eth, expect other whales, celebrities, actors and athletes to follow pic.twitter.com/CPOOfZCxe8
— yzy.eth (@LilMoonLambo) August 24, 2021
Another celebrity, Paris Hilton acquired parishilton.eth domain name followed by acquiring two other .eth domain names. She promotes ‘parishilton.eth account name through her Twitter account.’
As mentioned on OpenSea, ENS domains are protected domain names meant for the decentralized world and can be bought and sold on secondary marketplaces. As per the current data, there are 2.0M items with a total of 505.8K owners. The total volume at the moment is 54.8K ETH and the floor price is 0.01 ETH.
- ENS domains is made using two Ethereum smart contracts- the ENS registry and the resolver.
- .org, .app, .com, .io and more are supported by ENS.
- Status, Puma, Brave, MetaMask Mobile, and Opera are the browsers that support ENS.
Statistics for 2022
The month of February had 67,095 ENS registrations, which increased to 85,272 in March. Things continued on a positive note, and April had 162,978 registrations. In May, the increase was phenomenal, with 365,652 registrations.
Things went a bit unpleasant in June, with merely 122,327 registrations. In July, things were back on track with 378,804 registrations.
May also had record-high sales in terms of low, less character ENS domains.
Top domains sales 😳 (in the last 2 weeks)
Currently a 60E bid for 100.eth
Words will go for more very soon 👀 $ens
— DomainPlug.io (HIRING) (@BloomCapital_) May 8, 2022
ENS Domains NFTs took over BAYC
In April 2022, ENS Domains NFTs saw a significant spike in volume when investors took interest in buying three as well as four digit domains. As a result, the daily trade volume exceeded Bored Apes volume on OpenSea.
During the same time, one of the biggest sales also happened, as 555.eth NFT was bought for $158,000 ETH.
— ENS Sales Bot (@EnsSales) April 28, 2022
A DAO or Decentralized Autonomous System operates the ENS and is governed by the ENS token. Owners of the tokens have the right to submit proposals as well as vote for future development.
ENS governance token
It is a token that’s built on Ethereum. Traded by speculators, the token has a valuable role in the ENS community. Members of the ENS community discuss changes in the organization by using their tokens.
ENS token distribution
For a seamless distribution of ENS tokens, 25% of the ENS token supply was assigned to users who signed an ENS domains by October last year.
50% of the tokens were distributed among community treasury, 25% of the tokens were airdropped to .eth holders, and the remaining 25% were distributed among the ENS contributors.
The tokens were then airdropped to wallets that were connected to the ENS domains.
What is Namehash?
Domain names are unable to be interpreted by backend apps. Human-readable domain names are not understood by the ENS smart contract. To fix this, ENS has a 256-bit cryptographic hash generated from the human-readable name through a procedure known as Namehash.
The hash of a subdomain can be derived if the parent domain is known.
Renewing a domain is required to stop others from choosing it and can be done upon paying the renewal fee, which is paid in ETH.
28 days is the minimum renewal period. Once a domain expires, a grace period of 90 days is offered by ENS.
Through the ENS app, users can interact with the network. The application can be downloaded for free, and the ENS name can be paid for within seconds through the dashboard. If the preferred name is taken already, it can still be purchased on secondary marketplaces like OpenSea.
Advantages of Ethereum Name Service ENS
The most amazing perks of ENS include-
- Sending payments is way easy with the easy-to-read crypto addresses. For instance, after setting a .eth domain, only this address needs to be sent to the payee when requesting payment.
- The Ethereum Name Service prevents human errors.
- ENS has a multitude of amazing promotions, one after the other.
- An open, as well as permissionless payment experience, is a guarantee with ENS and the team is always working to promote and assist more third-party development.
ENS domains ownership grew beyond 1.8 million names out of which 378,000 new.eth registrations happened in July, as mentioned above.
July 2022 stats for ENS
– 378K new .eth registrations (total 1.86m names)
– $6.8m in protocol revenue (all goes to the DAO)
– 5,400 ETH in revenue (highest ever month)
– 48K new eth accounts w/ at least 1 ENS name (total 508k)
– >99% of OpenSea domain vol pic.twitter.com/TdD16FOX2d
— ens.eth (@ensdomains) August 1, 2022
Actor Anthony Hopkins, on his Twitter, added a .eth domain to his name in June.
— AHopkins.eth (@AnthonyHopkins) June 8, 2022
It is a blockchain domain naming protocol for Ethereum. ENS allows users to create human-readable usernames in place of machine-based tricky usernames.
The renewal cost of ENS domains is $5 a year for names with 5 characters or more. $160 per year is the cost for 4 character names, while $640 per year is the cost for 3 character names.
To buy an ENS domain, a crypto wallet must be set up as the first step. After this, ETH is sent to the wallet followed by connecting the wallet to the ENS dApp. An ENS domain can be chosen now, after which the ENS domain is registered. Lastly, a resolver is set.
To sell the ENS tokens, they must be converted back into ETH, which can be done by going back to the ETH/ENS pair, followed by trading the ENS for ETH. Upon this, the ETH is stored in the wallet. Finally, the ETH can be sent to a trading platform for selling.
ENS names are domains ending in .eth. As each one is a non-fungible token, it can be minted and sold similarly to other NFTs that are rare blockchain-oriented tokens that prove ownership.
An ENS domain is equal to a DNS domain that provides a safe and decentralized way to convert human-readable text into Ethereum addresses. ENS domains end with .eth and either have seven or more characters.