What is ENS? The Ethereum Name Service Explained

what is ens

Once you connect your Ethereum wallet, you can pick a name and decide on how long you want to hold on to it. Like web domains, ENS names are registered for a fixed period rather than forever. Short names cost significantly more to register, whereas names that are five characters or longer start at $5 (USD) per year. All you need is a good idea for an ENS name (one that isn’t currently in use) and a bit of ETH to pay for the registration. The main place where community members can discuss ideas and have governance-related discussions is the forum discuss.ens.domains. It’s also important to know that, in this regard, blockchain-based technology is very punishing.

A Beginners Guide to Ethereum and ENS

The DNS is part of a system of internet protocols that allow Web2 to work seamlessly. Web3, a concept describing the new decentralized version of the internet, is still a developing field and has issues that hinder adoption, such as long addresses. And once you own an ENS domain, you can easily create and own its subdomains. For example, if you own batman.eth, you can create subdomains such as donate.batman.eth or blog.batman.eth and configure them to take donations or share Batman’s day-to-day activities.

The Growing Popularity of ENS

You can connect your DNS-registered website with your ENS domain if you want to maintain one ENS domain name for your website, crypto address, LinkedIn account, Github, etc. Therefore, your ENS domain is a pseudonym for all your online accounts. Therefore, when you use your ENS domain on an internet browser, the browser directs you to your website.


  1. Likewise, ENS spreads out DNS capacities by allowing you to register your DNS names.
  2. You can share your ENS name instead of a long, hard to remember crypto address.
  3. More and more Ethereum-based dApps and protocols have added support for ENS usernames, including trading protocol Uniswap and NFT marketplace OpenSea.
  4. Previously, gas prices hit $100 during Ethereum network congestion, discouraging potential crypto users from using the network for non-emergency activities.
  5. Using short and memorable names instead of long addresses mitigates the risk of copy-pasting crypto addresses.

Use your ENS name to store all of your addresses and receive any cryptocurrency, token, or NFT. Unstoppable Domains operates as a for-profit company, and many of its domains have been “brand protected” to prevent individuals from owning certain names, words or phrases. This practice has led to complaints where people have been unable to buy a domain with their name, despite the fact it is not in use, such as JohnSmith.domain.

How to get your own ENS domain

what is ens

The Domain Name System and the Ethereum Name Service are both protocols that dictate how certain operations, either on Web2 or Web3, are resolved. The DNS converts the IP address of the web server into a human-readable string called a URL. While computers only understand IP addresses, DNS enables you to link a domain name to that IP address. So, whenever you want to explore any information, you can type in the domain name.

He used the grant to form True Names Limited (TNL), a nonprofit making organization headquartered in Singapore. We can trace the origin of ENS to the Ethereum co-creator’s 2014 whitepaper for the network. The first acknowledged effort of creating what would eventually become a web3 naming system exists in EIP-137, as Nick Johnson cites three years later. Sign up for free online courses covering the most important core topics in the crypto universe and earn your on-chain certificate – demonstrating your new knowledge of major Web3 topics.

Navigate this page to find the full list of marketplaces for buying and selling ENS tokens. ENS requires you to renew your domain annually to bar others from claiming a domain. Moreover, you can renew your domain any time before it expires by paying the renewal fee in Ether (ETH). That said, the Ethereum Name Service is undoubtedly a very important invention and an innovation that’s quickly become widespread and used by thousands of people. Registering an Ethereum Name Service domain is pretty straightforward, and all you need to do is have a hot wallet such as MetaMask.

You can use the ENS app to manage any usernames you have registered, assign different addresses to them, transfer them to a new owner or renew them ahead of time. The ENS token was airdropped to early adopters who had previously registered an ENS domain name. The claiming process started on November 8th, 2021, and users had until May 4th, 2022, to claim their allotted tokens. In a similar yet different way, Ethereum Name Service attempts to give people (as well as applications) an easier way to read and share cryptocurrency addresses.

what is ens

As a consequence of the high number of users, the ENS website has experienced several crashes in the recent past. You can also assign ENS domains to decentralized websites, such as those hosted by the InterPlanetary File Systems (IPFS), though this requires you to have higher technical knowledge. Likewise, ENS spreads out DNS capacities by allowing you to register your DNS names. Aside from this, the decentralized web is being built on the partnership between ENS and the file storage system IPFS. A great place to start is at almonit.eth, where you can search a directory of decentralized websites. ENS runs similarly to the Internet’s DNS, in that it has a hierarchical system that allows the domain owner total control of any subdomains.

The popularity of ENS has spawned something of a gold rush, similar to speculation surrounding website domain names in the past. Some ENS owners have made windfall profits, with ‘exchange.eth’ selling for 6,660 ETH. The ENS is an idea that will be familiar to anyone who remembers typing out website addresses by hand in the days before Google. Put simply, what is function of expense method it allows you to create a username for your Ethereum addresses. ENS is a critical advent in the cryptocurrency field and a step towards solving some of the pressing issues that riddle the industry – namely, user experience. If a user wants to submit a proposal to the ENS community, they will need the support of 100,000 tokens for it to go to a vote.

The standard Ethereum Address is converted into a human-readable text (foundation.eth). This means that users are able to send funds or interact with “foundation.eth” instead of with the standard address. Obviously, this makes it a lot easier for regular https://cryptolisting.org/ users and also tightens the possibility of a mistake considerably. It’s time we explore some fun facts about the .eth domains ENS offers to users. Having a human-readable name for your Ethereum account is important for usability and security.

ENS records could contain a Bitcoin address, a content record, social media account handles, or profile images like avatars. Once those records are stored, developers can resolve these records programmatically using resolvers on the blockchain. To find information, a set of machine readable addresses had to be known in order to locate where that information resided on computer network servers. As a result, the company has reached an inflection point where most wallets and influencers support ENS domains. As a domain owner of any level, ENS’ hierarchical system gives you total control over your subdomain formations.

Better still, you can assign several addresses to your ENS domain, implying that you only need a single human-readable domain to receive any digital currency or NFT. As such, these multi-address domains function contextually, meaning you can map your web3 wallet and Ethereum wallet to the same domain. Every identifier type, like a crypto address, designates guidelines that a resolver implements to obtain data for a specific use. Thus, it’s easy to outline new identifier types anytime through the EPI process. To accelerate the mass adoption of cryptocurrencies, finding the hitches and barriers that inconvenience users are essential. One of these hitches is the long and random crypto addresses, which are almost impossible to remember or memorize.

Investment Firm Warns of Overvaluation in MicroStrategy Stock

Cryptocurrency Investment Strategy

It’s quite common to see scalp traders opening and closing positions in a matter of seconds. This is why scalping is often related to High-Frequency Trading (HFT). Trend traders will typically use fundamental analysis, but this may not always be the case. Even so, fundamental analysis considers events that may take a long time to play out – and these are the moves that trend traders try to take advantage of. We call them active because they involve constant monitoring and frequent portfolio management.

  • It can also allow investors to take advantage of yields within decentralized finance protocols (DeFi).
  • The aim of this strategy is to reduce the risk of market exposure, and gain from the movement of both assets.
  • Major hacking events have been common, with investors losing thousands of dollars or more and, in many cases, hackers going free.
  • Two of the most popular averaging strategies are dollar-cost averaging and value cost averaging.
  • The holder or holders of this address bought the 79,957 BTC for around $73.5k in March 2011 when the BTC price value was around $0.92 for 1 BTC.
  • Our partners cannot pay us to guarantee favorable reviews of their products or services.
  • With the crypto market being known for its volatility, going in without having a strategy will increase the chances of an investor making bad decisions – influenced by greed or fear.

Wood spoke at the Bitcoin Investor Day conference in New York last week, where she said Bitcoin could actually eclipse Ark’s 2030 price target of $1.48 million and instead soar to $3.8 million. The 5,300% upside could be driven by further adoption of Bitcoin exchange-traded funds (ETFs), which won the approval of the U.S. The best thing bitcoin investors can do is nothing, according to Anthony Scaramucci. Even if your cryptocurrency gains are not reported to the IRS, you are required by law to report and pay taxes on those crypto gains. Cryptocurrencies derive their value from the security of the underlying technology and adoption by communities that use and support a cryptocurrency.

Safety and Security

Investing in cryptos is a long-term process, rather than a simple way to make a quick buck. In some cases, investors will keep their assets for years or potentially decades. In this article on how to invest in cryptocurrency, we’ll explore the top investment strategies available to help you get off to the best start. For example, a key characteristic that anyone weighing up the pros and cons of cryptocurrency investing needs to know about is the high volatility.

If you’re not quite ready to dive into cryptocurrency, there are some related investments to consider. For example, some Exchange Traded Funds (ETFs) offer “ways to play” in the crypto https://www.tokenexus.com/ market, but do not directly hold cryptocurrency or its derivatives. These investments allow you to dabble in this emerging landscape without taking the cryptocurrency plunge.

How do you mine cryptocurrency?

Investment firm Kerrisdale Capital has released a report suggesting that MicroStrategy’s shares are overvalued, arguing that they trade at a premium compared to the underlying value of Bitcoin. Past performance doesn’t predict future results, so there is no guarantee Bitcoin will continue to outperform other asset classes, let alone surge more than 50-fold. Supply is limited to 21 million coins, which are paid to miners who use powerful computers to add new blocks to the blockchain. A halving is triggered with every 210,000 new blocks, which cuts the reward for mining Bitcoin in half.

Cryptocurrency Investment Strategy

Long-term strategies lasting for decades are significantly different to those running for just a few years. Decide whether you want to generate profits you can spend soon or you’d prefer to save for your eventual retirement. Investors need to look out for fees on transactions, deposits, and withdrawals, Cryptocurrency Investment Strategy as these can eat into your profits significantly. Crypto arbitrage is a fairly simple strategy, though you do need to invest time into it and commit to the process to see results. When trading strategies are integrated into bots, they’re usually straightforward and structured well.