Guides, NFT

Is Ethereum Name Service an NFT? A Complete Overview

If you’ve ever used cryptocurrencies you understand the hassle of using a wallet address. These alphanumerical addresses are a pain in the ***. They often result in loss of funds and hacks.

This is where Ethereum Name Service (ENS) comes in, simplifying the whole process. So now you’re probably wondering what ENS is. Well i will be answering that question and much more. So without further ado let’s jump right in.

In this article:

What is Ethereum Name Service?

In short, Ethereum Name Service (ENS) links cryptocurrency addresses to more user friendly names. It operates similar to traditional domain names. They are defined as a system of dot separated domain names for example crypotyro.eth.

Once purchased owners have complete control of the address with full access to subdomains. Like other web 3.0 products, ENS is completely decentralised with open source code. The system is run by the ENS Dao whereby token holders vote on proposals shaping the development of the service.

Is Ethereum Name Service an NFT?

To answer your question, yes. Put simply NFTs are proof of ownership. It is a record on the blockchain which cannot be falsified or duplicated. This is true for ENS. They are unique domains which are specified as being ERC721 compliant NFT contracts, meaning that .eth domains can be transferred the same way as other NFTs. In turn they can also be traded peer to peer using a marketplace.

What makes them useful?

Ultimately, it saves the hassle of using long wallet addresses and provides an easy to read domain. Think assigning a name to a phone number. You can display it while interacting with decentralised apps or alongside your own NFTs.

What’s more anyone can place a bid on an ENS domain due to the permissionless nature of Ethereum. The service is entirely decentralised and non profit. There is no centralised authority determining who can or cannot register a domain.

How to register an ENS domain name?

Getting your own ENS name is easy. To start you will need a wallet loaded with some Ethereum. If you’re unsure which wallet to use you can check out my article NFT Marketplace: The Top 5 for Beginners (ENS uses Coinbase and Metamask).

Once you have your wallet set up head over to app.ens.domains. Using the search bar, enter the domain you wish to buy. Then simply follow the instructions below: (Remember to use a hardware wallet for extra security)

The future of ENS

This year has been crazy for ENS. To put it into perspective over 1 million domains have been registered. Volume on Open Sea has exceeded some of the most popular NFT collections such as Bored Ape Yacht Club and Crypto Punks. Not to mention, the 555.eth domain selling for $158,000.

There’s no doubt that ENS is a hot topic, but will the success continue? Well this is simply dependent on the future of Ethereum. If Ethereum continues to succeed then i have no doubt that ENS will. This isn’t a trend like most NFTs. The technology is similar to DNS in that it serves a function with demand remaining consistent.

Summary

Overall, Ethereum Name Service is an exciting new technology. Gone are the days of long wallet address. Now we have simple domain names all on a permissionless blockchain and if the numbers are any indication this tech is here to stay. People are buying domains up like hot cakes. Ultimately, if Ethereum is around so will ENS be.

Want to learn about fractional NFTs? Check out my article Can you Buy a Portion of an NFT?