The Ethereum Naming Service (ENS) is a new network that resembles Domain Name Service (DNS) in the allocation of naming rights. But it differs in a lot of ways.
Let us take an example of an Ethereum address. They look something like this ‘0x123f681646d4a755815f9cb19e1acc8565a0c2ac’. There are high chances of making an error while typing such a long address. Even if you are copying it, there are chances that you may confuse this address for someone else’s. But not anymore!
- The ENS allows for a compression of the typical wallet addresses into an address resembling spoken English words such as company/store titles, which is decentralized and more secure. For example – ‘sofocle.eth’. Moreover, sub addresses can be created to specify the name of the person receiving the funds, like ‘chris.sofocle.eth’.
- Unlike the typical DNS auction, purchase process of these addresses is Smart Contract-based, a closed auctioning system. Buyers submit their bids into the ENS with some ETH as a security. Bidding period is 72 hours long and when it ends, a 48-hour revealing period follows in which all users reveal their bids. The highest bidders have their ETH locked in the contract (at the price of the second highest bidder), while all other bidders get back their full amount minus the 0.5% transaction fee and those who fail to reveal a bid forfeit all of their ETH. The ETH of the highest bidder is locked for a year after which they may choose to terminate the contract and have their deposits returned or extend the contract.
Currently, ENS has released 100% of names for public auctioning that are more than six characters long. It is advisable to lock in any names of relevance before someone else does. And for any services related to Ethereum Blockchain development or wallet development you can contact us or mail [email protected].