Every day, millions type in the web addresses of websites they like to visit. But have you ever wondered what goes on behind the scenes while you wait for a website to load?
In the early days of the internet, computer scientists faced many challenges. One of them was using IP addresses to access websites. An IP address is a string of random numbers that represent the address of a website. It was harder to surf the web using the IP address as the string of numbers is not easy to remember and is random.
The development of the domain name system in 1983 solved this problem. The domain name system was created by Paul Mockapetris and Elizabeth Feinler. The function of the DNS system is to match the IP addresses to easy-to-remember website names.
Despite the crypto sector developing at a fast pace, it still uses an address system similar to that of IP addresses, with long random strings of characters. For example, it would be easy to send some crypto to your friend Max using the address Max. eth instead of a long wallet address.
The Ethereum Name Service is trying to solve this issue.
The Ethereum Name Service
The Ethereum Name System is an open and distributed system. ENS transforms complex crypto wallet addresses into easy words, similar to how DNS converts IP addresses to easy website names.
For example, let’s take our friend Max again. You want to send Max some crypto as his birthday gift, but you can’t remember his wallet address. Max can buy a domain such as Max1.eth using ENS. Next, he can link this easy-to-remember domain name to any wallet address he likes.
Users can buy and manage their domains using ENS. ENS enables users to make decentralized and secure transactions instead of using long and complex addresses. ENS can also decrease the chance of typing wrong addresses for the recipient.
Domains are a system of hierarchical names and are utilized by the ENS, similar to the DNS system. The domain owner has control over the top-level domain and other subdomains. There are differences between the two systems, despite being similar to each other.
How does the ENS system work?
The ENS registry and resolver are the two important components in the ENS domain architecture.
ENS registry:
The ENS registry is a smart contract consisting of a list of domains and subdomains and their information. The registry includes data on the ETH domain owner and resolver. Subdomains in the ENS registry are issued by registrars. Subdomains are similar to website sections that you would like to visit.
Let’s bring Max back to illustrate the above point. Max decides to deposit some crypto every month towards a college fund. Max can create a subdomain named college. Max1.eth, since he owns the domain Max1.eth. Max can link this new subdomain to his college fund wallet address.
Resolver:
Resolvers keep the Ethereum name service secure. Resolvers are smart contracts that implement specific standards to ensure network security. The resolver produces data such as crypto addresses when needed.
What is special about ENS?
ENS seems to be an exceptional tool. It provides a naming service for crypto addresses. So what is so remarkable about being a naming service? What are some of the features that make ENS so noteworthy? Which is the better service ENS vs DNS?
ENS is much more decentralized than DNS as it is built on the Ethereum Blockchain network and was designed specifically for smart contracts. This makes the ENS immune to security issues associated with a centralized structure. In October 2020, over 180,000 DNS servers were hacked into by Chinese internet service providers.
It is easy to send payments over the new easy-to-read crypto addresses. All that the user needs to do is send them. eth address and wait for the transaction to complete. ENS reduces the chance of human error as the crypto addresses become personal, recognizable, and very easy to remember in an ENS system. It is never a good feeling to send cryptos to the wrong address. You can lose cryptos for good if the receiver is non-compliant.
Additionally, ENS solves issues such as increased censorship and a lack of privacy in a centralized system using its proprietary architecture.
ENS DAO
A Decentralized Autonomous Organization (DAO) operates the ENS system. The DOA is governed using ENS tokens. The future development of ENS DOA can be influenced by owners of ENS tokens through voting.
Different methods have been used to distribute ENS tokens. 50% of the total ENS tokens are in the community treasury. Eth holders have 25% of the ENS tokens airdropped, and the final 25% are with ENS contributors.
Final Thoughts
ENS has been a revolutionary technology for the crypto industry. New users still run into complex and long strings of crypto addresses when they first attempt to enter the system. It is imperative to solve issues associated with accessibility in Defi and crypto to increase adoption.
The ENS system solves a fundamental issue in the crypto world. There are many more possibilities to bridge gaps in blockchain technology using the ENS system. Imagine how easy it will be for our friend Max to receive crypto with all these possibilities.
