Suppose someone asks you: What makes UPIs so popular in India? Is it convenience, or their real-time payment mechanism?
What answer would you choose?
For me, it’s the convenience. Not having to memorize lengthy bank account details to make payments is a big plus! (All you need to receive and make instant P2P payments is just a phone number.)
The Ethereum Name Service too is now making it possible for users to create and use a personalized password that’s easy to remember and share, instead of their Ethereum wallet public key. Read on to find out all about this development and have a detailed look at the protocol.
- Coin Rank: #147
- Coin Market Capitalization (as of 13 May 2022): $213 million
- Coin Economics: Fixed Supply
- Coin Total Supply: 100 million ENS
- Coin Circulating Supply: 20.26 million ENS
A Brief About Ethereum Name Service
In its whitepaper, the Ethereum Name Service (ENS) is described as a “distributed, open, and extensible naming system based on the Ethereum blockchain.”
What does that mean? Let’s break it down. ENS is a name and look-up service built atop the Ethereum blockchain. With it, crypto users will now have access to a human-friendly Ethereum wallet address.
This is an important achievement in the crypto ecosystem and will go a long way in improving adoption.
Before this development, as you may know, the public address of Ethereum wallets consisted of a long string of 42 hexadecimal characters. For example, 0xDC26EF3F5B8G1869&8338A2ADA83795FBA2D695E. An address that’s pretty much impossible for regular folks to remember. Having to use these addresses meant that wallet addresses had to be shared either through a QR code or message each time. This made the whole process of making and receiving crypto payments rather inconvenient.
With ENS, the wallet address can be something as simple, easy to memorize, and share as your nickname. For example, Thomas.eth or Christine.eth.
Your wallet’s public address stays the same, but the human-friendly address is connected to it, in order to make life simpler.
ENS also enables the creation of human-readable domains for website, content hashes, and metadata, giving you a Web 3.0 username. This username will connect all your addresses and websites under a single nickname, so you can receive any type of crypto or NFT.
How Does the Ethereum Name Service Work?
To enable human-readable addresses, ENS uses two Ethereum smart contracts.
The first smart contract is called the ENS registry. It records and stores all critical information about each domain—including the owner of the domain, resolver of the domain, and caching time for all records.
The second smart contract is called a Resolver. It is responsible for translating domain names and crypto wallet addresses to human-readable addresses and vice versa. It matches each domain and wallet address to the corresponding user and website.
ENS is not a centralized organization. It operates through a decentralized autonomous organization (DAO).
Governance involves the use of ENS tokens. Holders of these tokens stake these tokens to vote on or submit governance proposals, thus keeping the operation of the protocol transparent.
ENS is the utility token of the ENS protocol and has a maximum supply of 100 million tokens. At launch, the protocol airdropped 25% of the total supply for ETH holders, 25% went to the founders, and 50% to the community treasury.
ENS Protocol: Future Growth Potential
The ENS protocol initiative is crucial for the large-scale adoption of cryptos and the evolution of the Web 3.0 ecosystem.
It will also help beginners and those not well versed with the technical terminologies of the crypto field to get started.
Furthermore, ENS protocol is the first service provider in the crypto space to make this change. Currently, it hosts more than 1157 million human-readable names with more than 406,000 owners.
As the space evolves, there might be new service providers, but ENS will always have the distinction and advantage of being the first-mover. And that will help it to grow.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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