In the world of digital assets, domain names, as an important digital native asset, are gradually attracting attention. With the development of blockchain technology, blockchain-based domain name systems have emerged, among which the Ethereum Name Service (ENS) has become one of the most representative projects. This article will take an in-depth look at how ENS works, its use cases, governance mechanisms, and its future potential.
Basic concepts of ENS
ENS is a domain name registration protocol designed to map human-readable domain names (such as alice.eth) to Ethereum addresses. This innovation makes it easier for users to access and use blockchain resources. Key use cases for ENS include:
Web3 Identity/Username
Native payment: Enhance domain name property rights
Decentralized Network: Web3 Identity: ENS initially only supported Ethereum’s .eth domain names, but since August 2021, ENS also supports DNS domain names (such as .com, .cash, .money). This allows users to integrate their own DNS domain names into ENS, using it as a decentralized username and wallet. According to the latest data, more than 447,623 ENS domains have been created, 72% of which are .eth domains.
In addition, ENS has the potential to become a "single sign-on" solution for Web3, eliminating the need for traditional centralized services (such as Google) and allowing users to manage their identities more securely.
Native payment
An ENS domain is more than just an identifier, it also serves as a cryptocurrency wallet address, supporting the receipt of multiple cryptocurrencies, including BTC, ETH, and DOGE. This means that users can pay directly through ENS domain names without relying on traditional payment intermediaries, thus improving the efficiency and security of transactions.
Enhanced domain name property rights: ENS is designed so that users have complete control over their .eth addresses. Unlike traditional domain name registration agencies (such as Verisign or GoDaddy), the ENS protocol cannot revoke users' domain names at will, which provides stronger property rights protection.
Decentralized Network: ENS can also be integrated with decentralized storage solutions such as IPFS (InterPlanetary File System), Sia Skynet and Arweave. This means that websites using ENS can be stored in a decentralized network, further improving the censorship resistance and stability of the network.
ENS DAO and governance tokens
ENS’ decentralized governance structure is one of the keys to its success. ENS has launched a governance token and operates through a DAO (Decentralized Autonomous Organization). This governance model not only enables community members to participate in decision-making, but also ensures the transparency and fairness of the ENS protocol.
ENS Airdrop: The ENS airdrop is considered one of the fairest airdrops in recent times. Unlike many DeFi protocols that award airdrops to users who have invested the most funds, ENS’s airdrop distribution focuses more on community contributions. In this airdrop, 25% of the tokens will be allocated to .eth holders, 25% to ENS contributors, and 50% to the ENS DAO community treasury.
According to the report, a total of 137,689 wallet addresses are eligible for the ENS airdrop, and these addresses have until May 4, 2022 to claim ENS tokens. The median value of this airdrop is 180 ENS tokens, which is approximately $10,000 at current prices.
ENS governance mechanism
ENS token holders need to apply for governance rights from the ENS root key holder in order to adjust protocol parameters (such as domain name pricing, etc.). Any governance proposal requires the support of at least 100,000 tokens to enter the voting process. ENS also established the ENS Foundation to represent the DAO organization in a legal capacity to facilitate the execution of necessary actions in the real world.
ENS Integration with DNS: One of the advantages of ENS is its compatibility with existing DNS systems. The current DNS service is dominated by ICAAN (International Organization for Assigned Names and Addresses), a centralized management method that ensures that domain names will not conflict. ENS is designed to integrate seamlessly with ICAAN's domain name registry, thus avoiding potential conflict issues.
This is in contrast to HNS (Handshake), which attempts to replace ICAAN by creating a new root domain name registry, which may cause conflicts with the existing DNS structure.
in conclusion
As an innovative blockchain domain name service, ENS provides users with more convenient identity management and payment methods. With the advancement of decentralized governance, the future of ENS is full of potential. Whether as an identity for Web3 or as a bridge for decentralized payments, ENS is changing the way we understand and use domain names.
As the ENS ecosystem continues to develop, more application scenarios and opportunities will emerge in the future, which will make ENS an indispensable part of the blockchain world. Whether for developers or ordinary users, ENS will become an important tool for exploring the world of Web3.