The Ethereum Name Service (ENS) is a powerful tool designed to simplify interactions within the blockchain ecosystem. At its core, ENS functions as a naming system for wallet addresses, transaction hashes, and other machine-readable identifiers—transforming long, complex strings of characters into simple, human-readable names like yourname.eth. Much like how the Domain Name System (DNS) translates IP addresses into website URLs (e.g., google.com), ENS translates cryptographic addresses into easy-to-remember domains.
This innovation addresses one of blockchain’s biggest usability challenges: accessibility. For both new and experienced users, sending cryptocurrency to a 42-character hexadecimal address like 0xab5801a7d398351b8be11c439e05c5b3259aec9b can be error-prone and intimidating. ENS eliminates this friction by allowing individuals to use intuitive names instead—making blockchain interactions safer, more efficient, and more user-friendly.
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How Does ENS Work?
Launched on May 4, 2017, by Alex Van de Sande and Nick Johnson of the Ethereum Foundation, ENS operates as a decentralized protocol built on the Ethereum blockchain. It leverages smart contracts to manage domain registration and resolution.
Each .eth domain is represented as an ERC-721 non-fungible token (NFT), meaning every domain is unique and can be bought, sold, or transferred like any other NFT. The top-level domain .eth is controlled by a registrar contract that governs how subdomains are created and assigned.
For example, if you own binanceacademy.eth, you can create subdomains such as learn.binanceacademy.eth or support.binanceacademy.eth—and assign each to different wallet addresses, websites, or metadata.
Initially, short and popular .eth domains (like 3–6 character names) were distributed via Vickrey auctions, a sealed-bid auction model where the highest bidder wins but pays the second-highest bid price. These auctions ran for five days:
- Bidding phase (3 days): Users submit encrypted bids.
- Reveal phase (2 days): Bidders must reveal their bids; failure results in forfeiting their deposit.
- Winner determination: The highest bidder wins the domain and pays the second-highest bid amount.
Today, most domains are available for direct registration through ens.domains, with annual renewal fees based on name length.
ENS Domain Pricing and Renewal
Registering an ENS domain is now straightforward and affordable:
- Domains with 5 or more characters: $5 per year
- 4-character domains: $160 per year
- 3-character domains: $640 per year
These prices are quoted in USD but paid in ETH using real-time exchange rates from Chainlink’s ETH/USD oracle.
Renewal is essential—failing to renew your domain means losing ownership, and it becomes available for others to register. There's no grace period, so setting calendar reminders or enabling auto-renewal tools is highly recommended.
While early adopters competed in auctions for premium names like car.eth or god.eth, today’s users can instantly claim available long-form domains at low cost.
The $ENS Token and DAO Governance
In November 2021, ENS transitioned toward full decentralization by launching its governance token, $ENS, and forming a Decentralized Autonomous Organization (DAO). A snapshot taken on October 31, 2021, determined eligibility for the airdrop.
Users who owned a .eth domain before that date received free $ENS tokens, which granted voting rights in the DAO and a stake in the protocol’s future. Although the initial claim deadline has passed (May 4, 2022), this event significantly boosted interest in ENS adoption.
Holders can:
- Vote on governance proposals
- Delegate voting power to others
- Participate in shaping ENS development
This move reinforced ENS’s commitment to community-driven growth and long-term sustainability.
Use Cases Beyond Wallet Addresses
While simplifying crypto payments is ENS’s primary function, its utility extends far beyond:
- Linking to decentralized websites (hosted on IPFS or Swarm)
- Storing profile data (e.g., email, social media handles) securely on-chain
- Identifying smart contracts used in dApps
- Verifying identity in Web3 applications without revealing personal information
- Creating personalized subdomains for teams, projects, or services
Developers increasingly integrate ENS into wallets, exchanges, and dApps—allowing seamless lookups across platforms. For instance, instead of pasting a wallet address when donating to a creator, you can simply type creator.donate.eth.
👉 See how Web3 identity solutions are transforming online interactions.
How to Register an ENS Domain
Getting your own .eth name is quick and simple:
- Go to https://app.ens.domains
- Connect your Ethereum wallet (e.g., MetaMask, WalletConnect)
- Search for your desired name (e.g.,
yourname) - Choose registration duration (1+ years)
- Pay the fee in ETH plus gas
Once registered, you can:
- Set a primary cryptocurrency address
- Add multiple blockchain addresses (BTC, LTC, DOGE, etc.)
- Link content hashes for decentralized sites
- Configure reverse resolution (so your address displays your ENS name)
Your domain remains yours as long as you renew it annually.
Frequently Asked Questions (FAQ)
Q: Is ENS only for Ethereum addresses?
A: No. While originally designed for Ethereum, ENS supports over 50 blockchain networks including Bitcoin, Litecoin, Dogecoin, and more. You can link multiple addresses under one .eth name.
Q: Can I sell my ENS domain?
A: Yes. Since each .eth domain is an NFT (ERC-721), you can list it on NFT marketplaces like OpenSea or transfer it directly to another wallet.
Q: What happens if I don’t renew my ENS domain?
A: After expiration, there’s no grace period—the domain is immediately released and can be registered by anyone else.
Q: Are ENS domains censorship-resistant?
A: Yes. As a decentralized system running on Ethereum, no central authority can take down or alter your domain unless you lose control of your wallet.
Q: Can I create subdomains?
A: Absolutely. As the owner of a .eth domain, you can create unlimited subdomains and assign them to different addresses or data records.
Q: Do I need ETH to register an ENS name?
A: Yes. You’ll need ETH not only to pay the registration fee but also for gas fees when interacting with the smart contract.
The Future of Digital Identity with ENS
As Web3 evolves, digital identity becomes increasingly important. ENS represents a foundational layer in this new internet—giving users control over their online presence without relying on centralized registrars or custodial services.
With growing adoption among developers, creators, and institutions, ENS is paving the way for a more intuitive and secure decentralized web. Just as we no longer memorize IP addresses to browse the internet, future users may never need to see a wallet address again—thanks to human-readable names powered by ENS.
Whether you're a developer building dApps, a content creator accepting donations, or simply someone looking to simplify crypto transactions, an ENS domain offers lasting value in the expanding world of blockchain technology.
👉 Start building your Web3 identity today with simple, secure tools.