Ethereum Name Service: How Do I Get My Own ENS Domain?

Currently, the Ethereum blockchain’s most pressing problems are its limited accessibility and scalability, which make it harder to use and lead to high gas fees per transaction. Similar to Web 2.0’s requirement that you input long IP addresses, you’re forced to use complex wallet addresses and transaction hashes in the web3 and crypto spaces.

Ethereum Name Service (ENS) exists to combat this very issue.

This article will explore how Ethereum Name Service does it — and how to create your personal ENS domain.

Key Takeaways:

1. Ethereum Name Service (ENS) provides a distributed naming system on the Ethereum blockchain, allowing users to translate complex identifiers into simplified and readable wallet names. 

2. ENS domains are considered secure and private, as they’re built with smart contracts on the Ethereum blockchain.

3. ENS offers enhanced security, easier interaction with addresses, and user-friendly access to decentralized applications (DApps) and web3 functionalities. 

What Is Ethereum Name Service (ENS)?

Ethereum Name Service is a distributed naming system on the Ethereum blockchain. Launched in 2017 by founder Nick Johnson, it translates complex identifiers, such as crypto wallet addresses and long hexadecimal strings of numbers and hashes, into simplified and readable wallet names. ENS makes it easier to share and remember addresses on Ethereum’s blockchain.

Every time a user wants to receive a payment on the Ethereum wallet, the created ENS domain name is shared instead of a complicated address. Rather than receiving a payment from and address that looks like “Ox4h42j34298sd68” in your wallet, you can use ENS to buy human-readable names along the lines of johndoe.eth — which allows you to remember addresses more easily.

The concept of ENS domains is very similar to the Domain Name System (DNS), which simplifies most IP addresses on the web by creating human-readable names and easy-to-remember URLs. Effectively, ENS uses the same operating process on domains, but does so by implementing a crypto-centric technology known as DeFi.

DeFi (Decentralized Finance) is the term given to multiple financial applications that can be deployed on various blockchains, though mainly implemented on the Ethereum network. The technology expands the utility of blockchain to more complex financial use cases, and gives people complete control over their assets.

The origin of ENS and DeFi circulates around an application based on the Ethereum blockchain known as a smart contract. Just as you would sign physical contracts for various purposes, smart contracts are digital agreements that run on a predefined set of rules.

Besides acting as a decentralized name standard, an ENS domain name also doubles as an ERC-721–compliant NFT, which can be traded on many NFT wallets and marketplaces.

Are ENS Domains Safe?

Since ENS domains are built on smart contracts, they’re considered more secure and private than the internet’s DNS. What’s more, ENS exists on Ethereum’s highly programmable ecosystem, which allows the domain to interact with other smart contracts outside of naming. The digital agreements exist to reduce payment delays and risk of errors, making ENS highly safe for users to adopt.

How ENS Works

ENS uses a hierarchical structure to allow the creation and allocation of machine-readable Ethereum addresses in a decentralized way. Since it’s enabled by smart contracts, users need to bid for a name and participate in a blockchain-based action process. 

The ENS ecosystem is powered by three main components, described below.

Registry

The registry is the core smart contract at the heart of name registration on ENS. It contains a record of all registered domain and subdomain names. and maps them to the assigned resolver. 

As an owner of a domain in the ENS registry, you can set the domain's resolver and time-to-live (TTL). You can also transfer or change ownership details on the domain. Registrars — either smart contracts or externally owned accounts — allocate the names to system users.

ENS Registry.          Source: ENS

Resolvers

Resolvers are responsible for converting the names into Ethereum addresses. Depending on the specification, a resolver may implement the appropriate methods in the resolution of various records.

Two steps are involved in resolving a name on ENS. First, an inquiry is made to the registry to find the resolver responsible for the name through hashing. Next, if there's a record of the name, then the resolver returns the result. 

ENS Resolver. Source: ENS

ENS Name 

Regarding traditional DNS names, the top-level domain (TLD) refers to the very last segment — for example, the .com portion in learn.bybit.com. In ENS, domain names are registered with .eth at the end (for example, mary.eth). Furthermore, you can create subdomains under your main domain, such as pay.mary.eth.

How Much Does It Cost to Register an ENS Domain?

Currently, the rates for registration of .eth domains are as follows:

• A .eth name of over five characters costs the equivalent of $5 in ETH annually

• Four-character .eth names cost $160 in ETH annually

• Three-character .eth names cost $640 in ETH annually

Three- and four-character .eth names are priced much higher, since there are fewer of them available.

Why Is ENS Important?

The ENS blockchain-based domain service is vital to crypto enthusiasts for various reasons, including those described below.

Enhanced Security

Since the ENS ecosystem is powered by smart contracts built on the Ethereum blockchain, the platform relies on decentralized transaction verification, which reduces the risk of third-party interference. On the other hand, DNS is controlled from centralized servers, which could be a single point of attack in case of a vulnerability. 

Easier Interaction With Addresses

ENS uses human-readable addresses, a better option for manually feeding in long addresses when transacting crypto. Such addresses are prone to human error due to typos, omissions and other mistakes that could lead to loss of funds. 

User-Friendly Access

You can easily access DApps and other web3 functionalities via ENS without having to manually feed in a long wallet address. You can use your ENS domain name for various use cases easily and quickly. 

What’s the Difference Between ENS and Other Naming Services?

ENS, Unstoppable Domains, SPACE ID and Handshake are all decentralized naming systems that aim to simplify and enhance the usability of domain names in the blockchain ecosystem. But while each one contributes to the development of decentralized naming systems, they also have significant differences in purpose.

ENS operates as a second-level domain (2LD) to provide domain name extensions. It mimics the functionality of the traditional DNS system, converting machine-readable addresses into human-readable formats through smart contracts. 

Unstoppable Domains offers a similar service for ENS itself, but can also be supported in Polygon and other EVM-compatible networks. SPACE ID is similar, having started with a .bnb name service and eventually integrating the .arb and .eth domains with the goal of becoming a multi-chain name service.

Handshake, on the other hand, is a decentralized and permissionless peer-to-peer naming protocol. Its aim is to become the root server for the entire DNS infrastructure, allowing peers to manage and authenticate the root zone. Handshake doesn’t use specific extensions like ENS, Unstoppable Domains and SPACE ID, but focuses instead on creating a decentralized naming system for the internet as a whole.

What Are ENS Tokens Used For?

ENS has always been decentralized and an open-source service for the community. However, its decision-making authority lies mainly in the hands of a central team. To distribute more autonomy among the ENS community, the developers decided to launch the Ethereum Name Service (ENS) token in November 2021. As an ERC-20 token, ENS is mainly used for governance as holders lock it to participate in the voting process on the platform. 

ENS used Twitter to announce the release of its governance token, which was distributed to ENS DAO (decentralized autonomous organization) delegates. The ENS DAO community is given capital through ENS tokens and collectively makes decisions to better the ENS system.

Before the launch of the ENS token on Nov 9, 2021, 100 million tokens were airdropped to the ENS community. Twenty-five percent of these tokens were given to registered domain users, and another 25% distributed to significant domain contributors. The remaining 50% lie in the power of the ENS DAO community. 

Despite a prolonged bear market, the ENS community treasury has $185 million in locked funds, with over a billion tokens locked as of Q3, 2022. 

ENS Price Prediction

As of May 23, 2023, the ENS token is trading at around $10.31, which is a 38.84% increase from its all-time low (ATL) of $7.45 on Jun 14, 2022. This is still an 87.59% drop from its all-time high (ATH) of $83.40 on Nov 11, 2021. 

Price forecasting experts are relatively bullish on the future price of ENS. According to PricePrediction’s 2025 analysis for ENS, the token could hit a maximum of $31.48, reaching $192.80 in 2030. DigitalCoinPrice predicts a maximum price of $36.65 in 2025, which could rise to $108.62 by 2030.

While these prices seem bullish, this is not financial advice, and it’s recommended you always do your own research before investing in Bitcoin or any altcoins. 

Is ENS a Good Investment?

ENS is a blockchain project with a solid use case as demand for websites continues to skyrocket. Its unique value proposition of providing a decentralized platform to register censorship-free domains is innovative. 

Further, ENS is secured by the Ethereum blockchain, which has been implementing advances such as the Ethereum Shanghai upgrade to continuously improve its infrastructure. As such, ENS will benefit as more people demand .eth for their web3 transactions. 

The web3 movement is gaining momentum, and ENS has a grip on a unique niche market. ENS could be a good investment as the demand for web3 products continues to rise and the Ethereum ecosystem continues to grow. 

How Do I Buy ENS Tokens and Get My Own ENS Domain?

Initially, Ethereum Name Service’s founders hosted auctions to sell domain names to interested buyers, but anyone can now purchase an ENS domain simply by registering on the ENS domain website. Then, simply connect your Ethereum wallet and type in your preferred domain name.

As for interested investors looking to buy ENS tokens, you can open your account on Bybit, which allows investors to buy ENS as a spot pair (ENS/USDT) or perpetual contract (ENSUSDT). 

The Bottom Line on ENS Tokens 

ENS domains have given blockchain users a more accessible and efficient way of making payments via crypto wallets. The system’s decentralized network is also providing increased autonomy and placing control in the hands of the ENS community — which is why this space could be a lucrative investment opportunity in the long run.