AtoZMarkets - ENS, the abbreviation of Ethereum Name Service, is an Ethereum-based decentralized application (dApp) built on smart contracts. ENS allows you to buy a domain name for your crypto wallet addresses that look like this ‘samsonono.eth’. And it eliminates your long hexadecimal addresses that look like this ‘0x6cpe67c53980…’.
That means you'll be able to transfer your digital currencies directly to a name instead of an address. But that's not all it does. The ENS can also be used to visit a Swarm and IPFS content hashes, and other identifying processes. It allows users to easily browse and gain access to files on these networks. It can be done while supplying metadata-concerning names, such as ABIs for contracts, and Whois-like info for users.
Difference Between ENS vs. DNS
In a sense, ENS's goals are similar to the internet's DNS (Domain Name Service). Nevertheless, they are a significantly different structural design, due to the capabilities and limitations provided by the Ethereum blockchain.
While ENS is built on Ethereum smart contracts, it does not suffer the same security problems that affect the DNS system. Thus it is allowing names to work as intended.
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Why may you want an ENS domain?
Upon acquiring an ENS domain, you can point it to any funds you choose, and also create subdomains and assign them as you wish.
How can you do this? That brings us to the next question; how do name auctions work?
How name auctions work
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At the end of the 3-day auction, another 2-day “reveal” period starts. During this period, every bidder is required to reveal the details of their bid. Otherwise, they'd lose their entire bid. If you are not the highest bidder, you are refunded your bid, minus a 0.5% fee, which is burned.
After the 2-day reveal period has elapsed, the winner with the highest bid is announced. But he or she will have to pay the amount of the second-highest bidder.
This amount is specified in a contract. It is for as long as the winning bidder in control of the ENS name. The winner is mandated to send a “finalize” transaction to receive a refund of any extra funds. And it is to be assigned command of the new ENS domain.
Once the name auction has been won, the ENS domain is theirs for at least the duration of the initial registrar. However, the winner might decide to release the name. And he/she might recover the entire amount of their deposit after holding the title for at least one year.
Note that not all ENS names are immediately available for bidding, as they are released for auction gradually over eight weeks. The reason is that the system needs to scale up, and bugs need to be found and fixed during this period.
Let’s now proceed to show you how to get your name so that others can easily send Ether to you.
How to buy a name yourself
You can buy ENS domains for yourself with the four user-friendly interfaces listed below:
- registrar.ens.domains, the ‘official’ Dapp. This requires a blockchain-enabled browser (Mist, chrome with the Metamask plugin, or Parity with the browser plugin).
- My Ether Wallet, an open-source solution that runs entirely in your It requires you to upload and use your wallet’s credentials.
- ETHTools’ ENS integration is a closed-source solution that guides you through the entire process and uses server-side storage to facilitate easy bidding.
Bear in mind that when you place a bid, you must reveal it in the 48-hour reveal period. Else, you will lose the entire amount of your bid. Disclosing implies providing access to your account/private key, along with other additional information.
Hence, it very important that you back up your bid details to a JSON file if your solution of choice demands this. Or else, you will not be able to reveal your bid when you need to, and you will, consequently, lose it entirely.
We believe we have successfully walked you through all the necessary information needed to create your very own ENS name!
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