Vitalik Buterin, the co-founder of Ethereum, recently described the Ethereum Name Service (ENS) as "the most successful non-financial Ethereum application to date," comparing it to a decentralized phonebook. This powerful utility transforms complex blockchain addresses into human-readable names, making crypto transactions simpler and safer.
In October 2021, an unknown wallet purchased the ENS domain paradigm.eth for 420 ETH. This record-breaking transaction highlights the growing value and interest in decentralized naming systems. But what exactly is ENS, how does it work, and what opportunities does it offer?
Understanding the Ethereum Name Service (ENS)
ENS, short for Ethereum Name Service, is a distributed, open-source naming system built on the Ethereum blockchain. It allows users to replace lengthy, hard-to-remember cryptocurrency addresses—such as 0x4cbe58c50480...—with simple, customizable names ending in .eth, like satoshi.eth or vitalik.eth.
At its core, ENS serves as a decentralized resolver that maps human-readable names to both on-chain and off-chain resources. This includes wallet addresses, content hashes, metadata, and more. Launched on May 4, 2017, ENS uses a unique bidding mechanism that lets users register one or more .eth domains through an auction process.
Since each ENS domain is an ERC-721 non-fungible token (NFT), it can be traded, sold, or transferred on marketplaces like OpenSea. This adds collectibility and potential investment value to each name.
ENS also supports integration with traditional DNS domains. Users can associate existing domains like .com, .io, or .xyz with their ENS records, bridging Web2 and Web3 identity systems.
The practical benefit is clear: sending and receiving crypto becomes more intuitive. By using a name instead of a long string of characters, users minimize the risk of errors and lost funds. This is a critical step toward mainstream adoption of blockchain technology.
How Decentralized Domains Are Evolving
While ENS is the most established player, several other blockchain naming systems have emerged. These alternatives often leverage the high throughput and low fees of competing networks but have yet to match ENS in terms of ecosystem support and adoption.
EOS Account System
EOS accounts function similarly to domain names. These customizable accounts use a 12-character format that can include letters and numbers. Shorter account names are highly sought after and often sold via auction. A key feature of EOS accounts is their support for subdomains, adding flexibility for users and developers.
DAS on Nervos
DAS (Decentralized Account Services) is a naming system built on the Nervos CKB blockchain. It uses the .bit suffix and supports a wide range of languages, including Emoji. Each DAS account is unique and cannot be duplicated.
DAS introduces a dual-role model:
- Owner: The ultimate controller of the account, capable of transferring ownership or appointing a manager.
- Manager: Handles daily operations like updating records and managing subdomains.
This structure allows for more complex management setups, such as shared administration or delegated control.
Solana Name Service
The Solana Name Service (SNS) offers .sol domains that map human-readable names to Solana addresses, IPFS content IDs, images, or text. It aims to provide a affordable and decentralized naming alternative within the Solana ecosystem.
SNS supports English, Simplified and Traditional Chinese, and Emoji characters. All USDC revenue generated from domain sales is used to buy back and burn FIDA, the native token of the Bonfida project behind SNS.
Despite these alternatives, ENS remains the most widely adopted system, supported by major wallets, dApps, and services across the Web3 space.
How to Register and Use an ENS Domain
Registering an ENS domain is straightforward. Here’s a step-by-step breakdown using example.eth as a model:
- Start the Registration: Visit the ENS App, connect your Ethereum wallet, and search for your desired name. If available, you’ll begin the process by confirming the first transaction. This transaction places your request on-chain. If you don’t complete the next step within 24 hours, you’ll need to start over.
- Wait for Confirmation: After the first transaction, wait about one minute. This delay ensures network consensus and protects against duplicate registrations.
- Complete the Registration: Confirm a second transaction to finalize the registration. Once this is processed, you own the domain.
Registration fees consist of two parts:
- The annual rental cost of the domain (e.g., $5 per year for a 5-character name)
- Gas fees for the required Ethereum transactions
Shorter or meaningful names (3-4 characters) or those with common words may already be taken or priced higher in the secondary market. Premium domains like paradigm.eth can hold significant value due to their branding potential.
👉 Secure your own ENS domain today
The Future of ENS and Web3 Identity
ENS is evolving beyond a simple naming tool. Recently, the Ethereum Foundation, ENS, and Spruce collaborated to launch "Sign-In with Ethereum" (SIWE), a protocol that lets users authenticate with Web3 applications using their Ethereum account and ENS profile instead of traditional logins.
This approach gives users full control over their digital identity while reducing reliance on intermediaries. SIWE is already being adopted by Web3 applications and could eventually see use in Web2 services.
In October 2021, ENS also added support for NFT avatars. Users can set any owned NFT as their profile picture, which then displays alongside their ENS name in supporting applications. This integration enhances personalization and identity expression in decentralized communities.
As Web3 and NFT adoption grows, ENS is poised to become a central component of user identity online—a portable, self-sovereign naming system that works across platforms and services.
Frequently Asked Questions
What is an ENS domain used for?
An ENS domain simplifies cryptocurrency transactions by replacing complex wallet addresses with a readable name (e.g., name.eth). It can also store other information like avatar NFTs, email addresses, and social profiles, serving as a decentralized digital identity.
How much does it cost to register an ENS name?
Costs include an annual fee based on domain length (e.g., $5/year for 5+ character names) and Ethereum gas fees for transaction processing. Short names (3-4 characters) cost more per year.
Can I sell my ENS domain?
Yes. Since each ENS is an NFT, you can list it for sale on marketplaces like OpenSea, just like any other non-fungible token.
Is ENS only for Ethereum addresses?
No. ENS can map to multiple blockchain addresses (Bitcoin, Litecoin, etc.), content hashes, text records, or even off-chain data, making it a versatile naming tool.
How is ENS different from traditional DNS?
ENS is decentralized and built on Ethereum, giving users full ownership and censorship resistance. Traditional DNS relies on centralized authorities and is subject to takedowns or regulatory interference.
What happens if my ENS registration expires?
After expiration, there is a grace period during which you can renew. If not renewed, the domain becomes available for others to register. It’s important to keep your registration up to date if you wish to retain ownership.