What is ENS coin? Does Ethereum Name Service (ENS) have potential?

Ethereum Name Service (ENS) is a project that operates similarly to DNS, but it offers a more secure and decentralized solution in domain name management. But what specifically is ENS coin? What makes it special? Does Ethereum Name Service (ENS coin) have the potential for long-term investment? Let’s find out the detailed answers in the content of the article below.

What is Ethereum Name Service (ENS)?

What is Ethereum Name Service – ENS coin?

ENS coin (Ethereum Name Service) is a service that helps you easily send and receive cryptocurrency and access special websites using simple, memorable names instead of long, complicated strings of letters and numbers.
Example: If I ask you to send cryptocurrency to my ETH address:

• 0xbadcaabde75C0aFd7185514Cd8Fbcdf3200049F

It’s hard to remember, right? But with Ethereum Name Service, you can send it to an address like: investxz.crypto (assumed domain name).
Or instead of asking you to access a website based on IPFS at:

• https://abc.io/ipfs/QmPChd2hVbrJ6bfo3WBcTW4iZnpHm8TEzWkLHmLpXhF68A

Then you only need to access: https://abc.io/ipfs/blockchainrookies.ens
In both cases above, ENS coin allows you to replace a long, complicated string with something easier to read and use. It seems a bit like a link shortener like bit.ly, but it also has many differences.

Did you know?
Domain names for Ethereum are actually an NFT asset. If you want to transfer a registered domain name to someone else, you will send that name just like any other NFT.

What is the difference between DNS and ENS?

As I mentioned at the beginning, Ethereum Name Service (ENS) works in a similar way to the internet’s DNS system, helping users find websites by name instead of number.

But:

ENS is not designed to replace DNS, but to work alongside it.

DNS and ENS are both protocols that specify how to resolve certain operations, on Web2 or Web3. DNS converts the IP address of a web server into a human-readable string called a URL.

Meanwhile, Ethereum Name Service converts Ethereum addresses into a human-readable string formatted like a URL. In this way, both operate similarly to a directory. You can look up a name in the phone book and get the number that allows you to contact that person.

DNS is part of the system of internet protocols that allow Web2 to operate seamlessly. Web3, a new concept describing a new decentralized version of the internet, is still a developing area and has issues hindering adoption, such as long addresses.

Currently, the main purpose of ENS is to provide people and applications with an easy way to read and share cryptocurrency addresses and make Web3 more user-friendly. As Web3 becomes more popular, it is likely that many protocols will be built thanks to ENS.

What are the highlights of ENS coin?

ENS is built on Ethereum’s smart contracts, making it more secure, private, and censorship-resistant compared to the internet’s Domain Name System (DNS). The research team behind ENS aims to be community-oriented and non-profit.
On another level, ENS can use the existing Ethereum ecosystem, and ENS can interact with smart contracts and projects in Ethereum’s ecosystem.

The structure of Ethereum Name Service consists of two main parts: ENS Registry and Resolvers, where:

♠ ENS Registry: This is a Smart Contract containing a list of main and subdomains. Each main and subdomain stores the following three pieces of information:

• Address of the owner of the main and subdomains
• Address of the person executing the transfer of the main and subdomains
• Term of the main domain

The owner of a domain has the right to:

• Designate the person executing the transfer and the term of the domain
• Transfer domain ownership to another address
• Change the owner of the subdomain

♠ Resolvers: This is where the conversion of domain names to addresses is performed and returns the address corresponding to the registered domain name.
Fundamentally, ENS is just two smart contracts. The ENS registry will record all main and subdomains, as well as detailed information of the owners, and link to Resolvers. As mentioned, ENS implements a hierarchical domain name system similar to DNS consisting of main and subdomains. Thus, owning the main domain “coinvn.eth”, we can create a subdomain like “email.coinvn.eth”.

Ethereum Name Service (ENS) is one of the early NFT projects on Ethereum, allowing users to issue domain names consisting of characters representing their names or brands, ending with “.eth”.

Supporters of ENS call this the first step in building a digital identity in the Ethereum world, replacing both the long and complicated wallet addresses we usually see and potentially being used as a way to log into accounts.

Some Information About ENS Tokens

The ENS token is the governance token of the Ethereum Name Service, created on the Ethereum blockchain. This token is commonly bought and sold, traded on cryptocurrency exchanges by investors/speculators. However, the primary purpose of the ENS token is to help members of the DAO (Decentralized Autonomous Organization) managing the project, use their tokens to vote for changes related to Ethereum Name Service that they desire.

• For example, there is a voting queue on the ENS Law – a collection of rules and guidelines on how ENS should be managed. Each token can cast one vote. If 67% of the votes for a specific proposal of the Law are “Yes”, then that proposal is passed.

• If users want to submit a proposal to the ENS community, they will need to own 100,000 to have this proposal go to a vote.

Information about ENS tokens:

• Ticker: ENS
• Blockchain: Ethereum
• Token Standard: ERC20
• Contract: 0xc18360217d8f7ab5e7c516566761ea12ce7f9d72
• Token Type: Utility, Governance
• Total Supply: 100,000,000 ENS
• Circulating Supply: 33,158,495 ENS

ENS token allocation:

• Community fund: 50%
• Airdrop to .eth holders: 25%
• ENS collaborators: 25%

Later, developers airdropped these tokens into wallets connected to ENS domains. Portions of the ENS token group were distributed based on the duration a certain user owned an ENS domain.

In reality, this meant that many ordinary users received tens of thousands of dollars in ENS tokens in the airdrop – while those who have held domain names for many years received more generous allocations.

Who is the Team Behind ENS Coin?

Nick Johnson and Alex Van de Sande from the Ethereum Foundation led the initial development of ENS.
In November 2021, the project issued ENS tokens to service users and established a decentralized autonomous organization, or DAO, to manage it. (The legal entity connected to the DAO is True Names Limited.) ENS token holders use their assets like company shareholders. They can make decisions about pricing, protocol changes, and how to manage money in the budget.

In summary, ENS coin is operated by a decentralized autonomous organization (DAO), meaning there is no centralized leadership, power belongs to no one. The DAO self-manages through the ENS token – ENS token holders submit proposals and vote for future developments.

What are the Advantages of Ethereum Name Service – ENS Coin?

You’ve learned what ENS coin is. So, should you invest in this project? Let’s take a look at some of the outstanding advantages of this project:

• ENS coin makes domain names, addresses easier to remember and read.
• ENS coin operates on the Ethereum blockchain, so it can interact with many applications in the Ethereum ecosystem.
• Many celebrities have used the services of Ethereum Name Service, which will make the project more well-known.
• Ethereum Name Service recently released the latest series of identity NFTs, including 10,000 3-digit and 4-digit NFTs, from 000 to 9999. This will attract many investors, especially those who want to own an address with beautiful, meaningful numbers.

Example: A .eth domain name sold along with many other famous NFTs:

matching ENS with BAYC just hits pic.twitter.com/G2QbKElGm2

— 008.eth (@008_eth) April 27, 2022

• Those who hold these unique NFTs even formed a separate community called the “10k Club”, which now has 14,000 members.
• As of writing, the highest-priced ENS number address is 555.eth, purchased for 55.5 ETH (over $160,000).
• Ethereum Name Service also surpassed the milestone of 1,000,000 registered domain names in early May 2022

=> These outstanding advantages and achievements are the reasons for the rapid increase in ENS coin prices recently.

Today’s ENS Coin Price Update

Ethereum Name Service (ENS)

$ 17.64 3.16%

What are the Disadvantages of Ethereum Name Service (ENS)?

However, it cannot be denied that ENS still has many disadvantages and challenges, such as:

• A main attraction for ENS is that they are immutable. Once written to the Ethereum blockchain, they cannot be edited, changed, or deleted. From another perspective, bad actors, terrorist organizations, radicals, gamblers, etc., could exploit this to create websites, domain names with negative content. And of course – no one can delete or block them.

• ENS coins, like your cryptocurrency wallets, are 100% your responsibility to maintain and protect your private keys. If you lose it, you will lose control of that domain. Managing private keys is one of the biggest obstacles currently to the adoption of cryptocurrency.

• Using ENS for addresses makes them “less” anonymous, and many people use (or want to use) cryptocurrency because it is anonymous.

• The internet today puts a lot of emphasis on speed. But querying data on the blockchain is often slow, especially on Ethereum. This will be a significant drawback for ENS.

Does Ethereum Name Service – ENS Coin Have Potential?

Overall, Ethereum Name Service is showing that it is a revolutionary tool for cryptocurrency. When newcomers try to join the cryptocurrency space, they encounter long and complex cryptocurrency address strings. Therefore, simplifying everything will make cryptocurrency more accessible, increase usability, and ENS coin will become increasingly useful.
For now, in addition to helping some people own “NFT” domain names with a personal touch, ENS can also make it easier for everyone to send and receive cryptocurrency. However, the current use of ENS coin is only limited to that, while the demand for cryptocurrency transactions is still not very high, and there is still a long way to go before it can be on par with traditional “fiat”.

So, should you invest in ENS coin? Personally, I rate this as a good project, attracting much attention and has a lot of potential for long-term development. But at the current time, its potential is not really outstanding, so if you want to invest, only invest a very small amount. Always remember that the market is volatile, only invest what you are willing to lose.

Above are our analyses and evaluations of Ethereum Name Service. We hope that through this article, you have understood and grasped what ENS coin is and decided whether to invest in this project or not. Wishing you a wise decision and successful investment.