Benefits of ENS and Ethereum Name Service 2020
What is Ethereum Name Service? What are the benefits of ENS? Today, we’re going to you how to get your own ENS domain name so that others can easily send Ether to you.
December 15, 2020, | JAC9jA – ENS, the abbreviation of Ethereum Name Service, is an Ethereum-based decentralized application (dApp) built on smart contracts. ENS allows you to buy a domain name for your crypto wallet addresses that look like this ‘Azuka.eth’. And it eliminates your long hexadecimal addresses that look like this ‘0x6cpe67c53980…’.
That means you’ll be able to transfer your digital currencies directly to a name instead of an address. But that’s not all it does. The ENS can also be used to visit a Swarm and IPFS content hashes, and other identifying processes. It allows users to easily browse and gain access to files on these networks. It can be done while supplying metadata-concerning names, such as ABIs for contracts, and Whois-like info for users.
Difference Between ENS vs. DNS
In a sense, ENS’s goals are similar to the internet’s DNS (Domain Name Service). Nevertheless, they are a significantly different structural design, due to the capabilities and limitations provided by the Ethereum blockchain.
While ENS is built on Ethereum smart contracts, it does not suffer the same security problems that affect the DNS system. Thus it is allowing names to work as intended.
Why you may want an ENS domain?
As we have previously mentioned, Ethereum Name Service ENS gets rid of the stress of having to copy or type lengthy hexadecimal addresses. But with ENS, you’ll be able to send funds easily to the domain name. And you will engage with your smart contract at mycontract.eth, and check out swarm-hosted sites at swarmsite.eth.
Upon acquiring an ENS domain, you can point it to any funds you choose, and also create subdomains and assign them as you wish.
It is worthy of note that ENS is an entirely decentralized system. Thus, It is possible to create new ENS domains under the “.eth” top-level domain (e.g., ‘azuka.eth’) by an auction process. That takes place on the Ethereum blockchain. Moreover, anyone can participate and purchase an ENS domain for themselves.
How can you do this? That brings us to the next question; how do name auctions work?
How name auctions work
Auctions are divided into three different stages, and new names are assigned using an auction process based on a “Vickery auction.”
You are required to open an auction for a name you wish to procure and then place a bid. Once you do that, a 3-day timer starts for other participants to place bids on the title. At this point, the details of bids are hidden from the bidders. So nobody can tell how much you bid, or even what name you are bidding on.
At the end of the 3-day auction, another 2-day “reveal” period starts. During this period, every bidder is required to reveal the details of their bid. Otherwise, they’d lose their entire bid. If you are not the highest bidder, you are refunded your bid, minus a 0.5% fee, which is burned.
After the 2-day reveal period has elapsed, the winner with the highest bid is announced. But he or she will have to pay the amount of the second-highest bidder.
This amount is specified in a contract. It is for as long as the winning bidder in control of the ENS name. The winner is mandated to send a “finalize” transaction to receive a refund of any extra funds. And it is to be assigned command of the new ENS domain.
Once the name auction has been won, the ENS domain is theirs for at least the duration of the initial registrar. However, the winner might decide to release the name. And he/she might recover the entire amount of their deposit after holding the title for at least one year.
Note that not all ENS names are immediately available for bidding, as they are released for auction gradually over eight weeks. The reason is that the system needs to scale up, and bugs need to be found and fixed during this period.
Let’s now proceed to show you how to get your name so that others can easily send Ether to you.
How to buy a name yourself
You can buy ENS domains for yourself with the four user-friendly interfaces listed below:
- registrar.ens.domains, the ‘official’ Dapp. This requires a blockchain-enabled browser (Mist, chrome with the Metamask plugin, or Parity with the browser plugin).
- My Ether Wallet, an open-source solution that runs entirely in your It requires you to upload and use your wallet’s credentials.
- ETHTools’ ENS integration is a closed-source solution that guides you through the entire process and uses server-side storage to facilitate easy bidding.
Bear in mind that when you place a bid, you must reveal it in the 48-hour reveal period. Else, you will lose the entire amount of your bid. Disclosing implies providing access to your account/private key, along with other additional information.
Hence, it very important that you back up your bid details to a JSON file if your solution of choice demands this. Or else, you will not be able to reveal your bid when you need to, and you will, consequently, lose it entirely.
We believe we have successfully walked you through all the necessary information needed to create your very own ENS name!
Think we missed something? Let us know in the comments section below.