Potential “missing opportunities”? Infrastructure of Web3: Decentralized Domain Name

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

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

What is the purpose of spending such a large sum of money to buy a domain name ? How does the registration work? What kind of business opportunities are behind this? 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 a Divergence Ventures analyst had interacted with Ribbon products before the announcement of the Ribbon airdrop (May 25), and finally a total of 30 Multiple addresses received airdrops , and it was suspected that there might be “insider trading.”

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

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

The “ENS”, which plays a key role , is called Ethereum Name Service. It is a distributed domain name service based on Ethereum . It provides a secure and decentralized way to resolve simple human-readable domain names into on-chain and Address resources under the chain.

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

Simply put, ENS can map the personal long and hard to remember “Ethereum address starting with 0x” to a custom short address, such as satoshi.eth, vitalik.eth, and so on.

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

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

At the same time, ENS can also be used with your 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 be listed in the NFT market such as OpenSea, and then conduct auction transfers.

To some extent, the mixed form of long numbers and letters such as Ethereum addresses (usually 42 digits) is by no means friendly to the vast majority of users, and it is not conducive to the popularization of encryption in itself. A huge amount of money is caused by incorrect address input every year. Loss incidents are also frequently seen in the newspapers.

The ENS will be too easy Square address is replaced with the character of human memory, which is the key to encrypt a popular step, the user can select a more user-friendly memory addresses, send and receive encrypted so that assets become simple wrong turn while reducing transfer Address risk.

The development of decentralized domain names

According to the financial report previously published by ENS, in 2020, it received approximately US$310,000 in funding and received US$700,000 in income through ETH. Expenditure in 2020 is US$760,000, which is mainly reflected in salary, legal consultation, and hackathon. Rewards, bounties, and website and service hosting .

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

As of now, ENS has a total of nearly 400,000 registered domain names, integrated more than 300 applications, from wallets, applications to browsers, and gradually established a relatively complete ecology.

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

Many Ethereum users use ENS. It is expected that more and more people will use ENS in the future. The problem that ENS currently faces is that all functions are implemented on the main network, which leads to very high transaction costs. This is exactly what we are. Challenges in infrastructure.

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

This includes EOS short domain names and Nervos-based DAS, Terra ecological TNS, Solana ecological domain name services, and so on.

EOS account

The old EOS account itself is designed like an Internet domain name. It is 12 characters that can contain numbers and letters: a registered account requires a correctly mapped EOS account. After successful mapping, the user will have an EOS public key and a corresponding private key. Key, but 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 DAS (Decentralized Account Services) that has gradually emerged this year is a “decentralized account system developed based on Nervos CKB”. All DAS accounts end with “.bit” and can be registered in multiple languages ​​and even Emoji around the world. DAS is 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 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 the “OK.bit” NFT at Binance auction was 44529.2 BUSD. On October 19, the DAS domain name trading market was also opened, which is equivalent to opening a special liquidity market for DAS and taking a step toward fair market pricing. The key step.

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

TNS domain name service

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

According to reports, TNS recently opened the preferred domain name service to users who participated in the test before October 25, and will soon be open to all users.

SOL domain name service

Solana Domain Name Service aims to provide a decentralized and affordable way to connect domain names (.sol) with data on the chain. The data on the chain can be SOL addresses, IPFS content IDs, pictures, texts, or any other things.

A clear advantage of the domain name service is that it can be mapped with the SOL address, which is easy for people to read, and instead of using the SOL address for on-chain transfer and payment. Currently, domain names registered in English, Simplified Chinese, Traditional Chinese, and Emoji are supported, and all USDC received will be used to repurchase and destroy FIDA (Bonfida project tokens).

ENS registration experience

Next, we take ENS as the main object, and through the actual registration, anti-analysis, use and other processes, we will learn more about the characteristics, relative advantages and possible role positioning of the decentralized domain name 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 the two transactions required to complete the domain name registration. If step 2 is not performed within 24 hours after the completion of step 1, you need to start from step 1. Step over again.

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

Secondly, after approving the first step of the transaction, wait for about 1 minute to make sure that the entire network did not choose to register this domain name as well, which is also protecting our registration request.

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

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

If you register for a period of 5 years, that is, expire on October 18, 2026, you can choose to renew it at that time, similar to the rules of traditional Internet domain names.

At the same time, the main cost in the whole process is the operation cost of the contract interaction on the chain. As a 5-digit domain name, the actual registration price is not expensive (5 US dollars). The bulk of the cost is mainly a series of contract interaction chain operation fees during the period. .

Of course, this is only a five-digit ENS address. Other domain names with shorter or more meaningful digits may have been preemptively registered, such as paradigm.eth mentioned above. With the development of the industry, there is a huge potential Commercial value, if you have time, you can go to see what you like or plan to ambush. Maybe it will be a big missed opportunity in the future.

Potential "missing opportunities"? Infrastructure of Web3: Decentralized Domain Name

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 the website login.xyz to track the progress of Sign-In with Ethereum . Sign-In with Ethereum is a set of The technical specifications for logging in to third-party web applications with the Fang account enable users to control their digital identities through the Ethereum account and ENS profile, instead of relying on traditional middlemen.

It is currently used in Web3 and aims to standardize with best practices to make Web2 services easier to adopt. At the same time, 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 8th, ENS announced that it has supported the setting of NFT avatars in personal data. Users can set any NFT they own as the avatar of the 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 also become the hot spot of 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/potential-missing-opportunities-infrastructure-of-web3-decentralized-domain-name/
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