Definition of ENS Domains
The interest in ENS domains has been growing as talks around the development of the web3 ecosystem gain momentum. However, a clear answer to “What is a Ethereum Name Service domain?” is essential for users interested in purchasing ENS domain names. You can think of ENS domain names as labels for the wallets based on Ethereum network. ENS helps in transforming the string of letters and numbers in an Ethereum address to human-readable names. In addition, the owners of ENS domains could also create subdomains, which can help in mapping different pages and wallet addresses to a single domain.
Another easy way to understand Ethereum Name Service domains would point at the similarities with Domain Name System or DNS. The Domain Name System works by converting IP addresses into URLs alongside supporting the creation of subdomains for other services and applications. Before you buy Ethereum Name Service domain, you must know that they could also reference other information, such as addresses on other blockchains, social network profiles and photo avatars. You could assume that an ENS domain is almost similar to a universal username which safeguards anonymity in web3 applications. Many users in the web3 space have used Ethereum Name Service domains for creating brands and distinct identities with anonymous domains.
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How Did ENS Domains Develop?
The Ethereum Name Service or ENS project started off in 2017 and assumed the identity of a full-fledged organization in 2018. It is an initiative by the Ethereum Foundation and has many popular contributors. Apart from the Ethereum Foundation, Protocol Labs, BinanceX, Ethereum Classic Labs, and Chainlink are some of the prominent contributors to ENS. At the same time, the interest in how to buy ENS domain has been growing with consistently increasing corporate investments in Ethereum Name Service domains. For example, Budweiser owns the “beer.eth” domain name for promoting its NFT collection. In addition, celebrities engaging with the web3 spaces are also more likely to have ENS domain names.
Steps for Buying ENS Domain Names
The fundamentals of Ethereum Name Service and its origins establish the ideal grounds for determining how to purchase ENS domain names. However, you need to learn about certain aspects before finding out the ENS domain price and buying one. First of all, you must note that two domains could not be similar to each other, thereby implying that two users could not exert simultaneous control over a particular domain.
Users must note that the registration of ENS domain names relies on a time-basis approach. Furthermore, the domain ownership can be transferred through an NFT only, which implies that you can buy an ENS domain only on the secondary market. However, such methods for purchasing ENS domain names are not common. On the contrary, you can rely on the following steps for purchasing your ENS domain.
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Step 1: Create Your Cryptocurrency Exchange Account
You have found ENS as a helpful solution for your desired web3 use case. Now, the problem would revolve around the requirements for purchasing ENS domain names. What is the first thing you need to purchase ENS domains right now? The answer is ETH. As a matter of fact, the first step in buying an ENS domain focuses on obtaining the required amount of ETH in your account balance. You can purchase Ether by transferring fiat currencies to centralized cryptocurrency exchanges. Some of the popular cryptocurrency exchanges for obtaining ETH include Gemini, Voyager and Coinbase.
On the other hand, you can also choose the approach of sending tokens to decentralized exchanges. It is also important to remember that the ENS domain price would depend on existing gas prices and the length of the domain name. On top of it, the price of the ENS domain would also depend on the duration for which you wish to register the domain.
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Step 2: Download Crypto Wallet
The second step in the process of buying the Ethereum Name Service domain implies the requirement of a crypto wallet. You would need the wallet address to which the ENS domain can point, thereby establishing the necessity of crypto wallets for buying ENS domain names. The first crypto wallet for a user would obviously be one that offers better accessibility. Your crypto wallet should be accessible through browser extensions alongside support for interfacing with web3-based sites.
One of the popular examples of such wallets refers to Metamask. It offers different extensions for Firefox, Edge, Chrome and Brave browsers. Interestingly, you can also find native browser wallets in Brave and Opera browsers. While you figure out how to buy an ENS domain, you must emphasize the verification of a crypto wallet. Certain crypto wallets are susceptible to various vulnerabilities, such as phishing attacks. In addition, you must also pay attention to safeguards for your private key that could help in recovering the wallet or withdrawing funds.
Step 3: Transfer ETH to Crypto Wallet
Let us assume that you choose Metamask to buy your ENS domain. You must send ETH to the Metamask wallet to register the ENS domain. The process for transferring ETH to the Metamask crypto wallet would use the wallet address. Interestingly, the wallet itself could copy the address to the computer clipboard by using the account header at the top of the extension window. Now, you can paste the wallet address in the transfer destination field of the crypto exchange you have used for purchasing ETH.
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Step 4: Connecting Wallet to ENS Domains
The answer for “Is it good to buy ENS?” would draw attention to the ease of accessing the ENS domain names. After obtaining Ether in your wallet, you could find your way to the ENS decentralized app. The ENS dApp could help in connecting your wallet through a simple “Connect” option, visible in the top left corner of the dApp manager page. Then, you would find a Metamask popup featuring additional instructions on authorizing the connection. Subsequently, you need to follow the instructions by the crypto wallet for connecting it to the ENS dApp. Once you have connected the ENS dApp to your wallet, it can help in transferring ETH for purchasing ENS domain.
Step 5: Select the ENS Domain and Buy It
Access the ENS dApp page and type your desired domain name in the search bar. It would show you whether the domain name is available for purchase, alongside details of existing owner. In addition, you can also find the details of the expiry of existing registration on the domain name. Now, you have to think about the ENS domain price before moving ahead in the purchasing process. Upon purchasing unused domains, the price would vary according to the length of the domains. The domains with three characters could cost around $640 annually, while domains with four characters cost almost $160 per year. Interestingly, ENS domains with five or more characters can cost only $5 annually. However, you must also note that the registration cost does not include gas prices, which could vary from time to time.
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The distinct steps to buy an ENS domain show that anyone can register an ENS domain with a straightforward approach. Who determines the registration pricing for the ENS domain? The answer would direct you toward the ENS DAO, which is responsible for operating the ENS project. The DAO follows the self-governance approach by leveraging its native governance token. It is important to note that the ENS governance token is based on the Ethereum blockchain network. ENS DAO members can use the governance tokens to introduce necessary modifications. For example, the ENS community plans on introducing ENS Constitution with a collection of rules and guidelines for the governance of ENS. Users can submit proposals for a vote in the ENS DAO with the support of around 100,000 tokens.
Should You Get an ENS Domain?
The details of important concerns for registering an ENS domain can help you easily buy one for your personal use. However, concerns such as “Is it good to buy ENS?” have also affected the decisions of many buyers. Apart from the price and security concerns, buyers are worried about the additional functionalities of the ENS domain. First of all, you must notice that the utility of an ENS domain differs significantly from one person to another. In addition, the frequency of interaction with web3 solutions is also another important factor to consider before buying an ENS domain.
As of now, other blockchains, such as Terra and Solana, have come up with similar services. The detailed understanding of “What is a Ethereum Name Service domain?” proves the reasons behind blockchains coming up with their ENS mechanisms. The element of human-readable name service could support the growth of a strong community. Furthermore, Ethereum network upgrades are constantly geared toward the reduction of gas fees, thereby pointing to the possibility of lower ENS domain price estimates. On top of it, users can also register ENS domain names which could fetch higher demand in the future. In addition, buyers can also look for valuable domains which are set to expire as favourable long-term investments.
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The methods to buy the Ethereum Name Service domain and the important reasons for the same offer a clear guide on registering your ENS domain name. Ethereum Name Service offers favourable prospects for powering up the future of web3 by driving usability. The conversion of complex identifiers such as wallet addresses and hashes into human-readable names supports the adoption of crypto, blockchain and web3 solutions. As the web3 landscape expands, new protocols around the concept of ENS can emerge across different blockchains. Explore additional details about ENS and identify the best practices for leveraging them in web3 use cases now.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!