In the early days of the internet, one of the central challenges faced by computer scientists was the lack of connection between domain names and IP addresses, making the system difficult for the average user to navigate. To visit a website, you had to type its full IP address—like 54.235.191.121—into your browser. These long strings of numbers were hard to remember and made browsing cumbersome.
This changed in 1983 when American computer scientist Paul Mockapetris developed the Domain Name System (DNS), building on pioneering research by Elizabeth Feinler in the 1970s. DNS linked human-readable domain names to IP addresses. Instead of typing a complex numerical address, you could simply enter a name like coindeskjapan.com to access a site.
Despite the technological advancements in the cryptocurrency industry, sending and receiving digital assets still relies on a system reminiscent of those early IP addresses. To send Bitcoin (BTC) to someone, you need their wallet address—a long, unintelligible string of characters—rather than a human-readable identifier.
This is where the Ethereum Name Service (ENS) comes in.
Understanding ENS
The Ethereum Name Service is a decentralized, scalable, and open naming system that interacts with the Ethereum blockchain. Much like DNS, its primary role is to map human-readable names—such as "john.eth"—to machine-readable identifiers like cryptocurrency wallet addresses.
By using ENS, users can purchase and manage their own domain names. This allows for secure, decentralized transactions without the need to handle long, complicated addresses. It also reduces the risk of errors when entering recipient addresses.
While ENS may sound similar to the DNS system developed in the 1980s, its architecture is fundamentally different.
Like DNS, ENS uses a hierarchical naming system with domains, allowing creators and owners to manage their top-level domains and associated subdomains. However, ENS leverages blockchain technology to achieve greater security and decentralization.
How ENS Works
The Registry
Every domain name recorded in ENS has an owner. The owner possesses the named domain and has the freedom to transfer it to a new owner.
Individuals who wish to purchase a domain are called "registrants" because they must register the domain with ENS. The task of recording, monitoring, and tracking domain registrations falls to "registrars," which are managed by an ENS function known as the "registry."
Registrars are smart contracts that distribute subdomain names and are overseen by a main registrar called the permanent registrar. Changes can be made at any level within ENS at any time.
Registrants can also transfer their domain registration to another account. If someone wishes to reclaim a domain name, they can recover both the name and the domain.
This process resets the ownership of the ENS name to the registrar that recovered the account.
Names
As mentioned earlier, there is a distinction between owning a name and owning a registration. A "name" serves as the method for identifying a specific domain within ENS—for example, "john.eth." It consists of different labels separated by dots.
The algorithm used to process registered domain names in ENS is called "namehash." This system operates using limited-length 256-bit cryptographic hashes, replacing human-readable names to enhance efficiency.
Namehash is used to generate a hash from a name while preserving the hierarchical nature of the domain. For instance, the namehash for "john.eth" might be "0x787192fc5378cc32aa."
This is ENS's unique way of representing names.
Before applying namehash, the name must first be normalized. This means treating uppercase and lowercase names equally, ensuring all users see available names and domains in ENS consistently.
Why Is ENS Important?
ENS was developed for Ethereum smart contracts and is native to the Ethereum ecosystem. As a result, it does not suffer from the same security issues that plague the DNS system. DNS records are stored on centralized servers, which are vulnerable to hacking.
For example, in October 2020, Google's threat analysis group detected 180,000 attacks on DNS and other networks originating from a Chinese internet service provider—the highest number recorded at that time.
In contrast, ENS records are immutable and secured by the Ethereum blockchain, making them virtually impervious to tampering.
ENS also enhances transparency and simplifies interactions. Through participation in auctions, anyone can create and register a ".eth" domain. The highest bidder wins the domain name and gains the ability to create subdomains or lease the domain.
Thanks to ENS, users on the Ethereum blockchain can establish their presence on the network and have recognizable contact points in a sea of addresses.
Frequently Asked Questions
What exactly does ENS do?
ENS translates human-readable names like "myname.eth" into machine-readable addresses such as Ethereum wallet IDs. This makes sending and receiving cryptocurrencies easier and reduces errors.
How is ENS different from traditional DNS?
While both systems map names to addresses, ENS is decentralized and built on the Ethereum blockchain, offering enhanced security and resistance to censorship compared to the centralized DNS system.
Can I own multiple ENS domains?
Yes, you can own multiple ENS domains. Each functions independently, and you can manage them through compatible wallets and interfaces.
Is there an annual fee for ENS domains?
Yes, registering an ENS domain requires paying a fee, which varies based on domain length and demand. Fees are typically paid in ETH and cover registration periods.
What can I use my ENS domain for?
Beyond simplifying crypto transactions, ENS domains can host decentralized websites, serve as universal usernames across dApps, and even store profile information.
How do I get started with ENS?
To get started, you need an Ethereum wallet and some ETH for fees. Visit a supported registrar or platform, search for your desired name, and follow the registration steps. 👉 Explore more strategies for managing your digital identity