What is Ethereum Name Service?
ENS is the native token of the Ethereum Name Service. The latter is a decentralized platform linking unique names in the form of hashes to computer-readable identifiers. Think of it as a Web3 alternative to the Domain Name Service.
As of July 2022, there are over 1,000,000 names registered on the Ethereum Name Service.
ENS token serves as a governance token. This means that it grants voting rights to its holders. Generally, ENS coin holders vote on proposals centered around the pricing politics of the .eth addresses, which relate to the ENS price.
There is a total supply of 100,000,000 Ethereum Name Service tokens. As a project with a deflationary supply, its native token ENS price can grow as the tokens become more scarce. This is how they have been distributed:
- 50% - DAO Treasury;
- 25% - Airdrop;
- 18.96% - Core contributors;
- 2.5% - Integrations;
- 1.29% - External contributors;
- 1.25% - Future contributors;
- 0.58% - Launch advisors;
- 0.25% - Keyholders;
- 0.125% - Discord community members;
- 0.05% - Translators.
You can have a more in-depth look at the Ethereum Name Service price history and the current ENS price on the graph above.
What are the Main Features of Ethereum Name Service?
The Ethereum Name Service crypto project is completely decentralized since it’s deployed on the Ethereum blockchain.
ENS issues Web3 domain names that are readable by humans and registers them as hashes a.k.a. fixed identifiers. These issued names are described as “the first step into the metaverse”.
ENS names and addresses can be modified even after they have been purchased. It’s also the first project that allows users to import their domain names owned in the DNS system into the Web3 space.
Moreover, ENS users can create their own subdomains or configure existing subdomains. For example, if someone owns an ENS domain called someone.eth, they can create subdomains like social.someone.eth.
There are no limitations on who can purchase ENS domain names.
As discussed in the What is Ethereum Name Service section, we’ve established that it’s the DNS of Web3. Both DNS and ENS are running on a hierarchical name system, where the names are dot-separated. While the project has similarities to the Domain Name Service, its core difference can be seen through the implementation of blockchain technologies and the focus on Web3.
Most importantly, names issued by the Ethereum Name Service are owned and managed by two smart contracts. The first one functions as an ENS registry, while the second one serves as a resolver, which transfers human-readable names into machine-readable names.
One of the main goals of the Ethereum Name Service crypto project is to make itself an essential component of Web3, just like DNS is to our current state of the internet - Web 2.0.
The Ethereum Name Service is supported by over 50 digital wallet providers including Coinbase, Bitcoin.com, and Binance Wallet, as well as more than 400 dApps like Uniswap, OpenSea, and 1inch.
Moreover, ENS has announced a Bug Bounty Program. In the crypto world, a bug bounty is a rewards program that compensates independent actors who are able to locate vulnerabilities within a protocol. According to the ENS website, the size of the reward depends on the severity of the bug reported. Its highest reward stands at $250,000.
Who Developed Ethereum Name Service?
The Ethereum Name Service crypto project was launched in 2017 by the Ethereum Foundation. However, it cut itself off from the Ethereum Foundation in 2018 and became a separate organization.
The core members behind the Ethereum Name Service come from diverse professional backgrounds. They have worked with projects at the Ethereum Foundation and Google. As of July 2022, the core team has 12 members officially listed on their website.
The Ethereum Name Service crypto project utilizes "a four of seven" multi-signature model for the ENS root node. The signature is managed by 7 members, including Aron Fischer from Colony, Dan Finlay from Metamask, Jason Carver from the Ethereum Foundation, Martin Swende from the Ethereum Foundation, Nick Johnson from True Names Limited, Sergey Nazarov from Chainlink, and Taylor Monahan from MyCrypto. This means that out of 7 members, at least 4 need to participate.
There is no public information available regarding investments made to the Ethereum Name Service, however, the website lists their most generous supporters, including the Ethereum Foundation, Ethereum Classic Labs, Binance_X, Chainlink, and Protocol Labs.
Before diving into any crypto project, please make sure to do your research. In the case of Ethereum Name Service, you can start by checking out the ENS price statistics on the graph above.
