An exclusive guide on Ethereum Name Service (ENS) Domains NFT

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.

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.

Important facts

• 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. 

Also Read: PROOF Collective – The mysterious organization packed with top influencers & NFT celebs

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.

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 DAO 

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.

Domain renewal

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.

Also Read: Meet Pudgy Penguins, an NFT collection with a powerful comeback

ENS application 

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-

1. 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.   
2. The Ethereum Name Service prevents human errors. 
3. ENS has a multitude of amazing promotions, one after the other. 
4. 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.

Media highlights

ENS domains ownership grew beyond 1.8 million names out of which 378,000 new.eth registrations happened in July, as mentioned above.

Actor Anthony Hopkins, on his Twitter, added a .eth domain to his name in June. 

FAQs