What Is Ethereum Name Service (ENS)?

What Is Ethereum Name Service (ENS)?

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Жарыяланган Nov 25, 2021Жаңыртылган Nov 11, 2022
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Key Takeaways

  • Ethereum Name Service (ENS) is a decentralized naming system on the Ethereum blockchain that converts long, complex addresses into simple, human-readable names like “alice.eth.”

  • ENS names are represented as ERC-721 NFTs, which you can own, transfer, or sell like other digital assets.

  • The system supports both forward resolution (name to address) and reverse resolution (address to name), improving user experience.

  • ENS works with traditional internet domains (DNS), allowing the import of existing domain names through DNSSEC.

  • Names can be used across Ethereum, Layer 2 networks, and other blockchains, with support for off-chain data storage to enable gasless updates.

  • The ENS protocol is governed by the ENS DAO, ensuring decentralized community control over critical decisions like pricing and protocol upgrades.

Introduction

One consistent challenge for blockchains is making interaction easy and friendly. Wallet addresses are long, random strings that are difficult for users to remember or share safely. ENS solves this by replacing such addresses with simple, easy-to-remember names, much like how internet domain names replaced IP addresses. This makes sending, receiving, and interacting with Ethereum-based resources more accessible and less error-prone.

What Is Ethereum Name Service?

ENS is a decentralized naming protocol on Ethereum that lets users register human-readable names ending typically in “.eth.” Each ENS name is an ERC-721 non-fungible token (NFT), meaning the owner has verifiable ownership and can transfer or sell the name.

Beyond wallet addresses, ENS names can link to other data like cryptocurrency addresses on different chains, content hashes (to point to websites or files on IPFS), and personal metadata.

ENS also works alongside the traditional Domain Name System (DNS). Using DNS Security Extensions (DNSSEC), owners of regular domains like ".com" can import their domains into ENS for blockchain-based use.

Since its launch in 2017, ENS has evolved into a community-governed protocol managed by the ENS DAO, which owns the ENS root and makes key protocol decisions.

How Does ENS Work?

Architecture

ENS uses a hierarchical structure similar to DNS. At the top are top-level domains (TLDs) like ".eth," managed by smart contract registrars that set registration rules. The ENS registry is a central smart contract keeping track of domain ownership, resolvers, and TTL (cache) settings. Resolvers are contracts responsible for translating ENS names into addresses or other data.

Forward and Reverse Resolution

  • Forward resolution means converting an ENS name like “alice.eth” into one or more addresses or other linked data.

  • Reverse resolution means linking an address back to its primary ENS name, allowing wallets and apps to display friendly names instead of long hex addresses.

Domains and Subdomains

Owners of ENS domains can create unlimited subdomains that they fully control. For example, owning “alice.eth” lets you create “mail.alice.eth” or “shop.alice.eth,” each pointing to different resources or managed by different people.

What Can You Do With ENS?

ENS simplifies sending and receiving cryptocurrency by replacing complex addresses with simple names, reducing errors during transactions. You can associate different blockchain addresses with a single ENS name, making cross-chain interactions easier.

Beyond addresses, ENS names can store information like LinkedIn profiles, websites, emails, and social media handles. This makes ENS useful for decentralized identities and personal branding.

Ownership of an ENS domain also allows subdomain creation, delegation, and flexible management, which can support applications, communities, or decentralized organizations.

Registering and Managing ENS Domains

Registration

Today, registering an ENS domain is straightforward: visit the official ENS app, connect your wallet, search for an available name, and register it by paying the fee in ETH. Unlike in the early days, most names don’t require auctions and are simply registered on a first-come, first-served basis.

Pricing and Renewal

Registration costs vary by name length. Generally, names with five or more characters cost around $5 per year, while shorter names (3–4 characters) carry higher prices due to scarcity. Fees are paid in ETH but adjusted using Chainlink oracles to maintain dollar-value parity.

ENS domains require periodic renewal to maintain ownership. A grace period (typically 90 days) exists after expiration, allowing owners to renew before the name goes back to the public pool.

Historical Note: The Auction Process

At ENS’s launch, popular short names were distributed through a Vickrey-style auction where bidders submitted sealed maximum bids. This ended after the initial phase, and auctions are no longer used for registering new names.

ENS Governance and Security

The ENS root domain and protocol parameters are governed by the ENS DAO, a decentralized autonomous organization made up of ENS token holders. This community decides on fee structures, protocol upgrades, and other governance matters.

Once owned, ENS names cannot be revoked except if the owner loses private keys or forgets renewal. This permanent ownership is secured by Ethereum smart contracts.

Multi-Chain and Layer 2 Support

ENS has expanded beyond the Ethereum mainnet to support resolution on Layer 2 networks like Linea and zkSync, and other compatible blockchains. This allows faster, cheaper transactions while preserving ENS’s decentralized naming benefits.

Some wallets issue ENS subdomains off-chain, enabling gasless registration and instant updates (e.g., Uniswap Wallet’s ENS subname “uni.eth”).

Closing Thoughts

In the world of decentralized networks, ENS is a step forward in creating easily accessible ways of interacting with a blockchain. It makes blockchain addresses simple, human-readable, and flexible. Just like we no longer use IP addresses to navigate the web, we may see an increase in ENS names due to their usefulness and increasing popularity.

Further Reading

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