Back to Blog

Everything to Know About Ethereum Name Service (ENS) NFTs

May 13, 2022 9:22 AM

Cryptocurrencies like Ethereum use a DNS system called the Domain Name System. This allows users to easily access their wallets by typing in a short string of characters instead of remembering long addresses. Crypto wallets require users to type in other people's names when sending them money. ENS makes this process easier.

ENS is an open, decentralized, and Web3-friendly naming system that uses smart contracts to secure domain names. Users can buy and sell domain names for their websites and wallets. The ENS system was created by the ENS DAO, and the project is managed by the ENS team. All token holders are stakeholders, and they make decisions about the rules and regulations. ENS tokens can also be exchanged for other cryptocurrencies or fiat currencies such as US Dollars.

A lot happened in 2022. Ethereum Network grew significantly. ENS became the most popular domain name service. Many people started using ENS, especially for decentralized applications. ENS surpassed OpenSea as the second largest gas-consuming protocol.

Domain names are rare because they're hard to come by. People buy them for different reasons. Some people use them as a vanity name, others sell them for profit. There are about ten thousand domains with four-digit numbers. These were all sold within an hour of release. 4 digit ENS name can be used as a token id. Token Ids are used to create unique tokens for each user. This is called Name Service.

2022 has already been a crazy year for the ENS Community. ENS has emerged to be the go-to choice among thousands of dApps users and allowed them to switch completely to Web3. In April alone, over 160k new domain names were registered on ENS. By the end of the month, the daily trade volume on ENS surpassed the total amount of BAYC NFT traded on OpenSea. But then came May 2nd when ENS reached a new record with 1 million created names. With so much activity going on, ENS also dethrone OpenSea as Ethereum's 1 gas burning protocol. Domain names are rare and valuable. There are only ten thousand of them, and they sell for as much as $250,000 each. People buy them because they're rare, but also because they're cool. Four-digit Ethereum addresses can be used as tokens or profile pictures for the ENS service, but there is currently no way to link them together.

The question is how can you register a domain name using ENS?

At the website: Domain names are easy to buy if you're willing to pay. You can purchase domains that are already registered or you can register them yourself. To register a domain, you'll need to pay a certain amount of ETH. After paying the cost, you can choose whether you'd like to get the domain for free or if you'd like to pay extra for sub-domains.

ENS names are popular right now, and they're here to stay. Companies and brands will buy ENS names to show off their involvement in the blockchain industry. Brands will also purchase ENS names to protect their brand identity. Brands aside, ENS names are becoming a status symbol. Many people are buying ENS names that align them with their personal brand. This means that collecting ENS names has become similar to collecting vanity plates. People buy ENS names because they want to be associated with certain brands.