You must be seeing crypto users all over Twitter are putting their .eth names and you must be wondering what it is and how to get your own .eth name. Well before we jump into how to get your own .eth domain, it is important to have a better understanding of what is a .eth domain name. This explainer will focus on Ethereum Name Service (ENS), what is the importance of ENS and how to extract maximum profit out of it. But first one must know about DApps.
This guide is issued in the best of public interest and should be taken as a source of knowledge provider. It will help initial-stage crypto investors and learners to understand the concept in detail. Let us begin without any further delay!
What are DApps?
DApps (can also be written as dApps or dapps) are Decentralized Applications or programs that exist on the blockchain backbone and run on a peer-to-peer (P2P) network of computers. It means that the application runs on blockchain technology on networks of the computer instead of a single system. This assures that the program/application is out of the scope of any influence of a singular authority.
In the cryptocurrency concept, DApps runs on an open-source public blockchain network. It provides a decentralized environment for the app to nourish and grow on its own without any singular influence. For example, a programmer can program Facebook like DApp on a blockchain network where people can post their messages. The blockchain network ensures that the messages once posted are not deleted by anyone, not even by the creator.
DApps have several advantages over normal applications. Unlike other apps, it becomes very difficult for prominent individuals and even the government to take control of the network. Since DApps run on peer-to-peer network systems, no damage occurs to the network when any computer fails to run. Also, being originated on blockchain technology, DApps can easily integrate smart contracts, cryptocurrencies, etc. Additionally, the open-source system allows more creators to develop user-friendly and functional DApps for the network.
What is Ethereum Name Service (ENS)
Ethereum Naming Service (ENS) is a decentralized application (DApp) based on Ethereum Blockchain. It is a distributed naming platform where crypto users can convert their long alphanumeric wallet addresses into a human-readable format. The ENS has a basic function to convert a machine-readable address of digital tokens, metadata, crypto wallet into a short basic naming address that is understandable by humans.
It was launched in 2017 by Nick Johnson. The Dapp was programmed to translate complex identifiers, extended hexadecimal strings consisting of hashes & numbers. These translators make it easier for a user to share and remember their Ethereum addresses on the blockchain. The ENS works similar to as much as DNS (Domain Name System) where many IP addresses are simplified into readable names and URLs. Although, ENS uses a crypto-focused technology called DeFi to run a smooth operation.
The combination of ENS and DeFi revolves around Ethereum based blockchain application called a ‘smart contract’. It works very similar to signing off a hard copy of the contract and agreeing to terms and conditions. Similarly, blockchain-based ‘smart contracts’ are digital consensus that runs on a predetermined set of rules. Many P2P exchanges on the blockchain are managed by these smart contracts and are mainly used by many DeFi Applications.
How to get .eth domain name?
It is important to have an Ethereum based wallet having a substantial amount of ETH. The minimum requirement is $50 of ETH to have 1-year subscription + gas fees. The ENS ecosystem works with several Ethereum based wallets such as Metamask, Rainbow, trust Wallet, Coinbase, Blocto, Coinheko, and so on.
Following are the steps to pursue the .eth domain via https://ens.domains/
Step 1: “Login” to your wallet and make sure you have sufficient required balance. Following to which navigate to the ENS domain browser. Type a name you would like to go for on the “search option”. The availability of your selected name will appear with a “vertical green bar”. Select the available name domain with the green bar and proceed.
Step 2: You will need to choose the duration of the subscription with a “minimum duration of 1 year”. Further to this, you can always extend the subscription period as per your choice. You will see the amount for a 1-year endowment + the applicable gas fees. After locking the period proceed to “Request to register”.
Step 3: A new popup box will appear from the connected wallet. Select the preferred gas fees depending on how fast you want the domain name. It is categorized into 3 phases. i.e. “Slow, Average and Fast”. Subsequently, the gas fees get higher with the faster process. You can select the “appropriate gas fees” and “Save” them for the transaction.
Step 4: After checking and accepting the gas fees “confirm” to approve the transaction.
Step 5: Wait for the registration process to complete. In the middle of the screen, a green bar shows the status of the registration process. Upon waiting you will be prompted to “Click register to move to the 3rd step”.
Step 6: Click on the blue “Register” button and proceed. The transaction is submitted and your ENS is registered. Now, you have to set a resolver and tether your old address to your new ENS domain name. Follow the next few steps to concur.
Step 7: Tap on “Manage Name” and set your ENS records. On the “Resolver” section, click “Set”. Select the “Use Public Resolver” and click “Save” to proceed further for the transaction and store the changes.
Step 8: To select your address, on the “Records” section select the drop-down menu and add your “Address”. Proceed to “Save” and complete the transaction.
Well! that is it. You hold a .eth domain and can transact crypto under your Ethereum domain name.
The ENS Tokens
The ENS tokens were launched by the developers in November 2021. Ethereum Naming Service provides its community with ENS tokens where the governance system is managed by the delegates depending upon the amount of ENS tokens they earn. These tokens are distributed to ENS DAO (Decentralised Autonomous Organisation) representatives.
Moreover, ENS tokens are fungible, which means they can be traded through any crypto wallet and exchange platform. This gives a fundamental power to the ENS holder to trade their domain name for an NFT.
Before the launch of the tokens, 100 million tokens were dropped in the market by its launchers. The tokens distribution was done among the ENS community, ENS domain owners, and DAO community in the ratio 25%, 25%, and 50% respectively.