ENS Domains: In this step-by-step guide I’ll deep dive into ENS Domains from what is it, are and how you can buy one, or make money by trading it.
Have you ever tried to send an NFT to your friend and rechecked every corner of the address trying to not make any mistakes before you send it? Ever wondered about getting rid of those long eye scorching 0xblahblahblah addresses?
Let me introduce you to the “ENS“.
What is ENS?
ENS or “Ethereum Name Service” is a naming service for your public address(starting with 0x). Ever wondered how ENS works? Here’s one example.
You are trying to send some Crypto or an NFT to your friend by wallet or an exchange. He sent you his address starting with 0x7D1Af…. , you copied and then added the address into the recipient tab.
What will you do next?
- Go through the long string of characters several times to make sure the address is correct.
- Re-enter address multiple times.
- Indecision and fear before sending the asset.
To solve this or more like a bridge between machine-readable language and human-readable language, ENS comes forward. With ENS, you can register or bind your public address to a domain name (eg: yourname.eth). Each ENS will be unique, which means there will be only one ENS having the same domain name. Registered ENS can be traded on secondary marketplaces as NFTs.
For example, you can register your public address to an ENS domain, say “steve.eth”. Your friends can use “steve.eth” instead of your long confusing public address to send or receive crypto and NFTs through ENS compatible wallets and dApps. “steve.eth” can be traded at secondary marketplaces(OpenSea) as an NFT.
Even if ENS helps to do hassle free transactions, there’s more about ENS that you should know about. Read further.
Why should you buy ENS.
Let’s check some cases where ENS domains come useful.
DNS and ENS Integration.
Often everyone might have felt a lack of identity in the Web3 ecosystem. No one will address you by your public address of course. Brands created on Web2 domains can integrate their DNS to ENS to keep their identity in the Web3 ecosystem.
For instance, “yourbrand.com”(DNS) can be integrated with “yourbrand.eth”(ENS) if you are the owner of both DNS and ENS.
Lack of identity in Web3 denies certain traditional economic activities like undercollateralized lending, which is built on trust and relationships. ENS will be a step forward adding another layer or in strengthening the current layer of Identity built by the DeSoc or an SBT rich Soul.
Read more about SBTs here.
ENS as an Investment.
Ever thought of how Bitcoin got its value?
One of the reasons is, that there”ll ever be 21 million Bitcoins, including a reasonable percentage of Bitcoins lost forever. Scarcity creates demand, demand drives value, this is the classic law of supply and demand. ENS is a good investment and has shown massive ROI for holders in 2022, here’s how.
As the globalization of blockchain technology is at a steady fast pace, more and more people adopt Web3 day by day. As I said earlier, there”ll ever exist only 21 million bitcoins for the entire humanity, there”ll ever exist 900 of 3 digit ENS available to buy. This drives the value of 3 digit ENS or Identities higher. Likewise 4 digit ENS and 5 digit ENS too.
Recently, an ENS namely “amazon.eth” got a million-dollar offer, which shows how valuable Web3 identities are.
Let’s check at some expensive ENS trades that happened so far.
Expensive ENS Domains Sale so far
Last sale: 420 ETH
Value at time of sale: $1,500,000
Last sale: 300 ETH
Value at time of sale: $321,600
Last sale: 80 ETH
Value at time of sale: $94,800
Last sale: 60 ETH
Value at time of sale: $71,600
Last sale: 60 ETH
Value at time of sale: $66,840
Last sale: 52.9 ETH
Value at time of sale: $9300
Last sale: 50 ETH
Value at time of sale: $55,700
Last sale: 40 ETH
Value at time of sale: $125,640
“Even though some domains mentioned above is related to popular brands, they don’t really own their ENS equivalent of their DNS, they would be forced to pay massive amount as a trade off to joining the Web3 space lately”
Key Stats on Some Popular Domains
3 Digit ENS.
Floor : 20 ETH
Highest last sale: 300 ETH
Value at time of sale: $321,600
“Among the ever-growing supply of ENS domains, 3 digit ENS has shown exponential growth in the last years, from a price of 0.5 to a floor price of 20 ETH as of now (20/07/2022), which is a massive 4000% ROI”
4 Digit ENS.
Floor: 1.18 ETH
Highest last sale: 38 ETH
Value at time of sale: $46,000
5 Digit ENS.
Floor: 0.02 ETH
Highest last sale: 7.5 ETH
Value at time of sale: $1260
Here’s view of Hitesh Malviya, founder of Itsblockchain, IBCDAO and IBC Capital on ENS domains.
How to register on ENS domains.
Now let’s check how you can register your first ENS domain.
Open an ethereum compatible browser.
Open metamask and make sure you are on Ethereum mainnet and are ready to cover gas fees.
Go to manager.ens.domains using the browser and connect the wallet.
Search for your name on the site. Choose a non registered domain name and proceed to register.
Choose the period of registration and click the request to register button (blue, bottom right).
Accept the transaction and wait for some minutes. (Gas is paid in ETH)
Once the wait is over, click on the blue “register” button that shows up. After finalizing the transaction, wait for the transaction to go through.
And your name is registered!
ENS should be renewed before the expiration date and can be traded on secondary platforms like OpenSea.
Step-by-Step Guide to Importing a DNS Domain Name to ENS
- ENS or Ethereum Name Service is a naming service to bind your public address to a human readable name.
- ENS makes blockchain transactions hassle free.
- A replica of IRL identities can be created in Web3 using a
combination of ENS and SBTs.
- DNS and ENS integration helps brands to keep their identity in Web3.
- ENS is a good choice of investment when it comes to small collections of ENS, like collection of all 3 digit ENS.
- ENS can be registered from manager.ens.domains or can be bought from secondary marketplace like OpenSea.
We’ve also created a youtube video on this article which you can check out here
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