Topics Altcoins
Bybit Learn
Bybit Learn
Intermediate
Dec 9, 2021

Ethereum Name Service: How Do I Get My Own ENS Domain?

Currently, the Ethereum blockchain’s biggest problem is its limited accessibility and ease of use, due to its restricted scalability and high gas fees per transaction. Similar to the manner in which Web2 requires you to input long IP addresses, you’re forced to use complex wallet addresses and transaction hashes in the Web3 and crypto spaces. Ethereum Name Service (ENS) exists to combat this very issue.

Read on to find out how Ethereum Name Service does it — and how to create your personal ENS domain.

What Is Ethereum Name Service (ENS)?

Ethereum Name Service is a distributed naming system that exists on the Ethereum blockchain. Launched in 2017 by founder Nick Johnson, it translates complex identifiers, such as crypto wallet addresses and long hexadecimal strings of numbers and hashes, into simplified and readable wallet names. ENS makes it easier to share and remember Ethereum addresses on the blockchain.
 

Every time a user wants to receive a payment on the Ethereum wallet, the created ENS domain name is shared instead of a complicated address. Rather than receiving a payment which looks like “Ox4h42j34298sd68” in your wallet, you can use ENS to buy human readable names along the lines of johndoe.eth — which allows you to remember addresses more easily.

The concept of ENS domains is very similar to the Domain Name System (DNS), which simplifies most IP addresses on the web by creating human readable names and easy-to-remember URLs. Effectively, ENS uses the same operating process on domains, but does so by implementing a crypto-centric technology known as DeFi.

DeFi (Decentralized Finance) is the term given to multiple financial applications that can be deployed on various blockchains, though mainly implemented on the Ethereum network. The technology expands the usage of blockchain to more complex financial use cases, and gives people complete control of their assets.

The origin of ENS and DeFi circulates around an application based on the Ethereum blockchain known as smart contract. Just as you would sign physical contracts for various purposes, smart contracts are digital agreements that run on a predefined set of rules. These contracts also manage peer-to-peer interactions on the blockchain, which is why many DeFi applications such as ENS use them to facilitate different use cases. 

In order for an ENS domain to be created, it uses an ERC (Ethereum Request for Comment) token, which is a standard used for creating and issuing smart contracts. Since they deploy non-fungible tokens (NFTs), ENS uses ERC-721 tokens. NFTs, unlike cryptocurrencies, are unique cryptographic tokens that cannot be replicated. The ENS domain requires this feature since it provides a unique wallet address, which is deployed on the ERC-721 token, to each user.

What’s in an ENS name?

When it comes to traditional DNS names, the top-level domain (TLD) refers to the very last segment. For example, the .com portion in learn.bybit.com. In ENS, domain names are registered with .eth at the end.

How Much Does It Cost to Register an ENS Domain?

The shorter the domain name, the higher the cost — so users looking to purchase popular five-, four- or three-letter domain names may have to pay more. The average cost for an ENS is typically $5 per year.

Note: Extra Ethereum gas fees may apply.

Are ENS Domains Safe?

Since ENS domains are built on smart contracts, they’re considered more secure and private than the Internet’s DNS. ENS exists on Ethereum’s highly programmable ecosystem, which allows the domain to interact with other smart contracts outside of naming. The digital agreements exist to reduce payment delays and risks of errors, making ENS highly safe for users to adopt.

What’s the Difference Between ENS and Other Naming Services?

Currently, ENS is considered to be preferred over its competitors. The main focus of ENS is to provide a distributed and trustworthy naming domain for Web3 users who interact on the Ethereum blockchain. On the other hand, most of the other naming services, such as Namecoin and Blockstack, are trying to replace the DNS naming service completely. ENS doesn’t share the same approach, and instead seeks to exist in harmony with the Web2 domain.

What Are ENS Tokens Used For?

ENS has always been decentralized, and an open-source service for the community. However, its decision-making authority lies mainly in the hands of a central team. In order to distribute more autonomy among the ENS community, the developers decided to launch the ENS token in November 2021, which would allow its governance to be managed by the public. 

ENS used Twitter to announce the release of its governance token, which was distributed to ENS decentralized autonomous organization (DAO) delegates. (A DAO is essentially a small Internet community with a shared bank account.) The ENS DAO community is given capital in the form of ENS tokens and collectively makes decisions to better the ENS system.

Before the launch of the ENS token on November 9, 2021, 100 million tokens were airdropped to the ENS community. 25% of these tokens were given to registered domain users, and another 25% to significant domain contributors. The remaining 50% lie in the power of the DAO community. Currently, the token is trading with multiple cryptocurrency exchanges and brokers, just as with any other cryptocurrency.

Is ENS a Good Investment?

ENS is a revolutionary project because it holds a combination of fungible and non-fungible attributes. Since all the .eth domain names are ERC-721 compliant NFTs, they can be traded on many NFT wallets and marketplaces.

Existing ENS domain users who managed to register for ENS tokens received additional tokens from the recent airdrop. Therefore, the ENS tokens are fungible, and can be traded via crypto wallets and exchange platforms. The power of being able to sell the domain name for an NFT — while also buying and selling the tokens as a crypto investment — makes this a lucrative investment opportunity.

If you’re an ENS token holder, your investment would have tripled in the opening week of the token launch. ENS went live on November 8, 2021 at $25, rallying over 300% to highs of $84 in just 48 hours, according to CoinMarketCap data. As of December 2021, the ENS token (Ethereum Name Service) price is $50, which is still a 2x return since its official launch.

How Do I Buy ENS Tokens and Get My Own ENS Domain?

Initially, the ENS founders hosted auctions to sell domain names to interested buyers, but anyone can now purchase an ENS domain simply by registering on the ENS domain website.

The next step is to connect your Ethereum wallet and type in your preferred domain name.

As for interested investors looking to buy ENS tokens, just follow these simple steps:

  1. Open an online account: You can open your account on our platform exchange, Bybit, which allows investors to purchase ENS. Other popular cryptocurrency trading platforms also give you this function. 
  2. Buy an ENS wallet: ENS can only be bought with Ethereum’s cryptocurrency (ETH), so you have to convert your Ether for ENS using a decentralized exchange (DEX), such as Uniswap or SushiSwap. In order to do this, you may use a number of wallets that allow you to trade using a DEX. These include CoinomiMath Wallet and a variety of other options. 
  3. Purchase your ENS tokens: Once you’ve accessed your DEX, simply insert the amount of Ether you want to swap for ENS tokens. After the transfer is complete, you’ll have become an investor in the ENS token. 
Sign up to trade ENS on Bybit

The Bottom Line on ENS Tokens 

ENS domains have given blockchain users a more accessible and efficient way of making payments via crypto wallets. The system’s decentralized network is also providing more autonomy and placing control in the hands of the ENS community, which is why this space could be a lucrative investment opportunity in the long run. You can purchase your ENS domain with just a few clicks via Bybit.

If you’re looking to buy ENS tokens directly without having to swap Ether, use the Bybit trading platform to do so. Our exchange allows you to directly buy ENS tokens in exchange for fiat currency — so you can become an ENS investor in the simplest way possible.