Buterin : ENS is by far the most successful non-financial Ethereum application

Recently, Vitalik Buterin said in an interview: “The Ethereum domain name service ENS is by far the most successful non-financial Ethereum application, and it can basically be compared to a decentralized phone book.”

On October 9, 2021, an unknown wallet purchased the Ethereum domain name paradigm.eth for 420 ETH, the largest ENS domain name transaction to date.

Buterin : ENS is by far the most successful non-financial Ethereum application

What is the purpose of spending so much money on buying a domain name, how to register it, and what business opportunities are there behind it , let us find out.

What is ENS?

A while ago, some users discovered through on-chain data combined with ENS that a series of Ethereum addresses related to an analyst at Divergence Ventures had interacted with Ribbon products one after another before the Ribbon airdrop announcement (May 25, 2021) . More than 30 addresses received airdrops , so it was suspected that there may be “insider trading”, and there was a lot of noise for a while.

Buterin : ENS is by far the most successful non-financial Ethereum application

Including the earlier “rat warehouse incident” of OpeaSea, it was actually mined because the corresponding executives used their own public ENS addresses.

The “ENS” that plays a key role , the full name of Ethereum Name Service, is a distributed domain name service based on Ethereum, which provides a safe and decentralized way to resolve simple human-readable domain names into on-chain and Off-chain address resources.

On May 4, 2017, ENS officially landed on Ethereum. Through the unique bidding mechanism, any user can register one (or more) Ethereum addresses ending with “.eth” through the bidding process. domain name.

Simply put, ENS can map personal long and unremembered “Ethereum addresses starting with 0x” to custom short addresses, such as satoshi.eth, vitalik.eth, etc.

In this way, in wallets that support ENS, users no longer have to copy and paste long addresses, and can directly use the ENS domain name to bind various cryptocurrency addresses and receive payments in cryptocurrencies.

Buterin : ENS is by far the most successful non-financial Ethereum application

At the same time, ENS can also be used with its own DNS domain names. At present, ENS supports many DNS domain names, such as “.com”, “.io”, “.xyz” and so on.

In addition, ENS is built on the ERC721 protocol, that is, each ENS domain name is actually an NFT , so after the current registration is completed, you can choose a price to list in the NFT trading market such as OpenSea, and then conduct auction transfers.

To a certain extent, the mixed form of long numbers and letters (usually 42 bits) such as Ethereum addresses is not friendly to the vast majority of users, and it is not conducive to the popularization of encryption. Losses are also frequently reported.

ENS replaces the Ethereum address with characters that are easy for humans to remember, which is a key step . Users can choose a more friendly user address for memory, which makes it easier to send and receive encrypted assets and reduce transfer mistakes. address risk.

The Development of Decentralized Domain Names

According to ENS’ previously published financial report, it received a total of about $310,000 in funding in 2020, and earned $700,000 through ETH, and spent $760,000 in 2020, mainly in salary, legal advice, hackathons Awards, bounties, and hosting of websites and services .

Buterin : ENS is by far the most successful non-financial Ethereum application

Up to now, ENS has nearly 1.16 million registered domain names and integrates more than 500 applications, from wallets, applications to browsers, and has gradually established a relatively complete ecosystem.

At the previous Shanghai Wanxiang Blockchain Summit, Vitalik also said that for users, infrastructure is the key, and ENS is a very important infrastructure.

There are many Ethereum users who use ENS, and it is expected that more and more people will use ENS in the future. The problem that ENS is currently facing is that all functions are implemented on the mainnet, which leads to very high transaction fees, which is exactly what we do. Challenges in infrastructure.

Therefore, at the same time, in addition to ENS based on Ethereum, there are other blockchain domain name systems. They have the underlying advantages of low cost and high throughput with the help of competitive public chains, but they are temporarily inferior to ENS in terms of ecological construction. .

This includes the well-known EOS short domain name and Nervos-based DAS, Terra ecological TNS, Solana ecological domain name service and so on.

EOS account

Among them, the old EOS account itself is designed like an Internet domain name, which is a 12-digit character that can contain numbers and letters: a registered account needs a correctly mapped EOS account. After successful mapping, the user will have an EOS public key and a corresponding private key. However, EOS accounts shorter than 12 digits need to be auctioned. It is not only short, but also supports the concept of domains.

DAS account

The gradually emerging DAS (Decentralized Account Services) is a “decentralized account system based on Nervos CKB”. All DAS accounts end with “.bit” and can be registered in multiple languages ​​and even Emoji around the world. All are unique, DAS accounts with the same name cannot be created repeatedly.

At the same time, DAS is based on the design of Owner and Manager, giving different possibilities for rich gameplay compared to ENS:

  • Owner, the ultimate owner of the DAS account, who can transfer the account and set up the administrator of the account;
  • Manager, the administrator of the DAS account, can manage the records, sub-accounts, etc. of the account;

Previously, the final transaction price of “OK.bit” NFT in the Binance auction was 44529.2 BUSD. On October 19th, the trading market for DAS domain names was also opened, which is equivalent to opening a special liquidity market for DAS, which has taken a step towards fair market pricing. critical step.

Buterin : ENS is by far the most successful non-financial Ethereum application

TNS Domain Name Service

TNS is the domain name service system of the Terra ecosystem, developed by the Terra ecological block browser Extraterrestrial Finder team, and aims to provide Terra ecological domain name services with suffixes such as “.ust”.

According to reports, TNS has gradually opened its preferred domain name service to users on October 25, 2021.

SOL Domain Name Service

Solana Domain Name Service aims to provide a decentralized and affordable way to connect domain names (.sol) with on-chain data. These on-chain data can be SOL addresses, IPFS content IDs, images, text, or anything else.

A clear advantage of the domain name service is that it can be mapped with SOL addresses, which is easy for people to read, and replaces the use of SOL addresses for on-chain transfers and payments. Currently, English, simplified Chinese, traditional Chinese, and emoji are supported to register domain names, and all USDC received will be used to repurchase and destroy FIDA (Bonfida project token).

ENS registration experience

Next, we take ENS as the main object, and through the actual process of registration, anti-resolution, and use, we will learn more about the characteristics, relative advantages and possible roles of decentralized domain names in the WEB3 era.

For example, for the domain name of xxxxx.eth, the specific registration is divided into the following three steps:

First, we need to confirm a transaction in the wallet, this is the first of two transactions required to complete the domain name registration, if step 2 is not performed within 24 hours after step 1 is completed, it needs to be completed from step 1. step to start over.

Buterin : ENS is by far the most successful non-financial Ethereum application

Secondly, after approving the transaction in step 1 and then waiting for about 1 minute, make sure that the whole network did not choose to register this domain name, and it is also protecting our registration request.

Buterin : ENS is by far the most successful non-financial Ethereum application

Finally, we need to confirm a transaction in the wallet again. Only after this transaction is confirmed can we determine whether the domain name has been successfully registered.

If the one-time registration is for a period of 5 years, that is, it expires on October 18, 2026, at that time, you can choose to renew the renewal, which is similar to the rules of traditional Internet domain names.

At the same time, the main cost of the whole process is the on-chain operation cost of contract interaction. As a 5-digit domain name, the actual registration price is not expensive ($5). .

Of course, this is only a five-digit ENS address. Most of other domain names with shorter or more meaningful digits may have been squatted. Just like the paradigm.eth mentioned above, along with the development of the industry, there are huge potential Commercial value, you can go to see what you like or plan to ambush when you have time, maybe it will be a big opportunity to find out in the future.

Buterin : ENS is by far the most successful non-financial Ethereum application

I also saw a new news a while ago. The Ethereum Foundation, the Ethereum Domain Name System ENS, and the digital identity authentication company Spruce jointly launched a website login.xyz to track the progress of Sign-In with Ethereum . A technical specification for logging into third-party web applications with an Ethereum account, enabling users to control their digital identity through an Ethereum account and ENS profile, rather than relying on traditional middlemen.

It is currently used in Web3, and aims to standardize with best practices to make Web2 services easier to adopt, and decentralized domain names such as ENS are not only used for addresses, but will also cover all aspects of DApp services in the future .

On October 8, 2021, ENS announced that it has supported setting NFT avatars in personal profiles. Users can set any NFT they own as the avatar of their ENS profile, and then DApps can display the avatar next to the user’s ENS name.

According to the current development momentum of NFT and the increasing popularity of Web3, ENS, etc. will most likely become the hot spot in the next wave of NFT, and even become the key carrier of user digital identity in the Web3 era, which deserves our special attention.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/buterin-ens-is-by-far-the-most-successful-non-financial-ethereum-application/
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