The Ethereum Name Service (ENS) has emerged as one of the most innovative and user-friendly tools in the blockchain ecosystem. Praised by Ethereum co-founder Vitalik Buterin as one of the most successful non-financial decentralized applications (dApps), ENS simplifies how users interact with blockchain addresses. This guide dives into ENS’s core functionality, how it works, its key differences from traditional domains, and a step-by-step registration process.
What Is ENS?
ENS, short for Ethereum Name Service, is a decentralized domain system built on the Ethereum blockchain. Launched in 2017 and incubated by the Ethereum Foundation, ENS was created by developer Nick Johnson and is now maintained by True Names LTD, a nonprofit organization.
At its core, ENS replaces complex cryptocurrency wallet addresses—like 0x123...abc—with human-readable names ending in .eth, such as yourname.eth. This makes sending and receiving crypto significantly easier and less error-prone.
For example, instead of copying a 42-character Ethereum address to send funds to Vitalik Buterin, you can simply use vitalik.eth. The ENS system automatically resolves this name to the correct wallet address behind the scenes.
👉 Discover how decentralized identity can simplify your crypto experience.
Key Features of ENS
1. NFT-Based Ownership
Each .eth domain is an ERC-721 NFT, meaning it’s unique, verifiably owned, and transferable. As an NFT, your ENS domain can be bought, sold, or traded on NFT marketplaces. You maintain full control over your digital identity and can use your domain across any Ethereum-based dApp.
2. Wallet Address Resolution
Once you register a domain, you can link it to your Ethereum wallet. This enables reverse resolution, where your wallet address displays as your .eth name in dApps and wallets. No more sharing long strings of characters—just your simple, memorable domain.
3. Multi-Crypto & Web3 Identity Support
ENS supports more than just ETH. It can resolve addresses for Bitcoin (BTC), Litecoin (LTC), Dogecoin (DOGE), and other cryptocurrencies. Beyond payments, you can link your ENS domain to:
- Social media profiles
- Email addresses
- IPFS-hosted websites
- NFT avatars (set as your profile picture in Web3 apps)
This turns your .eth name into a unified Web3 identity.
How Does ENS Work?
ENS operates through three core smart contracts on Ethereum:
1. Registry Contract
Maintains a database of all .eth domains and subdomains, tracking ownership and expiration dates.
2. Resolver Contract
Translates human-readable names (e.g., alice.eth) into machine-readable data like wallet addresses or content hashes.
3. Registrar Contract
Controls domain allocation. Most domains are registered on a first-come, first-served basis, though rare short names may have been auctioned off earlier.
These contracts work together to ensure secure, transparent, and censorship-resistant domain management.
ENS vs. Traditional Domains: Key Differences
| Feature | ENS Domains | Traditional Domains |
|---|---|---|
| Technology | Built on Ethereum blockchain using smart contracts | Relies on DNS (Domain Name System) managed by ICANN |
| Control | Fully decentralized — no central authority | Centralized control by registrars like GoDaddy |
| Security | Immutable and resistant to censorship or takedowns | Vulnerable to DNS hijacking or government takedown |
| Use Cases | Resolves to crypto addresses, IPFS content, metadata | Primarily resolves to IP addresses for websites |
| Ownership | You truly own your domain as an NFT | You lease the domain annually; ownership remains with the registry |
| Privacy | Transparent on-chain records; privacy depends on wallet anonymity | Personal info often public unless privacy protection is purchased |
ENS empowers users with true digital ownership—a foundational principle of Web3.
What Is ENS Domain Wrapping?
In early 2023, ENS introduced domain wrapping, a major upgrade that enhances flexibility and control.
By wrapping an ENS domain, it becomes an ERC-1155 token, a more advanced standard that supports both fungible and non-fungible tokens and allows batch operations. This means:
- Subdomains can be managed individually as NFTs
- Parent domain owners can grant or revoke permissions
- Domains can be “locked” to prevent changes until expiration
- Owners can “release” subdomains, giving full autonomy to others
This upgrade makes ENS more scalable and suitable for organizations, projects, or individuals managing multiple subdomains.
👉 Learn how next-gen digital identity is shaping the future of the internet.
How to Register an ENS Domain
Registering an ENS domain is simple:
- Visit the official ENS website at ens.domains
- Connect your Ethereum wallet (e.g., MetaMask)
- Search for your desired
.ethname - Choose the registration period (1+ years)
- Pay the annual fee in ETH
Pricing Structure
- 5+ characters: $5/year (~0.01 ETH)
- 4 characters: $160/year (~0.32 ETH)
- 3 characters: $640/year (~1.28 ETH)
Note: You’ll also pay gas fees for the Ethereum transaction, which vary based on network congestion.
Once registered, your domain will appear in your wallet as an NFT. Remember to renew it before expiration to avoid losing ownership.
How to Use Your ENS Domain
After registration:
- Set up reverse resolution so your wallet shows
yourname.ethinstead of0x... - Link social accounts, email, or NFTs via ENS profile settings
- Use it when receiving crypto—just share your
.ethname - Host decentralized websites using IPFS and link them to your domain
Your .eth name becomes a portable identity across DeFi, NFTs, DAOs, and more.
What Is the ENS Token?
The ENS token is the governance token for the ENS DAO (Decentralized Autonomous Organization). With a total supply capped at 100 million tokens, ENS holders can vote on protocol upgrades, treasury use, and future development.
Key facts:
- Launched November 9, 2021
- Max annual inflation: 2% (set by DAO)
- Voting threshold: 100,000 ENS tokens required to submit a proposal
ENS Tokenomics Breakdown
The initial distribution of ENS tokens was designed to reward early adopters and contributors:
- DAO Treasury (4-year vesting): 50% (50 million tokens)
- Airdropped to users: 25% (25 million), with ~78.5% claimed
- Core contributors (4-year vesting): 18.96% (18.96 million)
- Other contributors (developers, Discord users, etc.): 6.04% (6.04 million)
This fair distribution model helped decentralize control and incentivize community participation.
Frequently Asked Questions (FAQ)
Q: Is ENS only for Ethereum addresses?
No. While built on Ethereum, ENS supports over 500+ cryptocurrency addresses including BTC, LTC, DOGE, and more. It also resolves to decentralized content like IPFS hashes.
Q: Can I sell my ENS domain?
Yes! Since each .eth domain is an NFT, you can list it for sale on NFT marketplaces like OpenSea or LooksRare.
Q: What happens if I don’t renew my ENS domain?
If you miss the renewal deadline, your domain enters a grace period. After that, it becomes available for others to register.
Q: Are short ENS domains valuable?
Yes. Domains with 3 or 4 characters are rare and highly sought after. Some have sold for hundreds of ETH due to their brevity and branding potential.
Q: Does ENS work on Layer 2 networks?
Yes—and more are coming. ENS is planning a major v2 upgrade to improve scalability, including migration to Layer 2 solutions to reduce gas costs and expand functionality.
Q: Can I connect my traditional .com domain to ENS?
Yes! Through partnerships with registrars like GoDaddy, you can link your .com domain to your Ethereum wallet using ENS, bridging Web2 and Web3 identities.
ENS continues to evolve as a cornerstone of decentralized identity. With upcoming upgrades like L2 integration and expanded top-level domains (TLDs), its role in shaping the future of digital ownership is only growing stronger.
👉 Stay ahead in Web3—explore how decentralized naming systems are transforming online identity.