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One of the more interesting crypto tokens to explore this crypto winter might be Ethereum Name Service (ENS-USD). It is a domain protocol built on the Ethereum (ETH-USD) blockchain. In this article, we’ll look at what Ethereum Name Service is, the tokenomics of the coin, and the strength of the Ethereum Name Service DAO.
What is Ethereum Name Service?
Simply put, Ethereum Name Service is a domain provider built on public blockchain rails. One can think of it a bit like DNS but for a Web3 environment. The service provides public domains on the blockchain similar to how a company like GoDaddy (GDDY) would provide dot com domains for more traditional Web companies. In addition to building websites with Web3 domains, domain holders can also use the domain addresses for payment routing and ID verification. For instance, Google (GOOG) (GOOGL) or Facebook (META) accounts are often used to sign into Web2 websites. In Web3, users can sign into applications using their domain address through a wallet like Metamask.
ENS uses the .ETH extension which is potentially problematic because “.eth” has actually been reserved for the country of Ethiopia by ICANN – the Internet Corporation for Assigned Names and Numbers. While .eth hasn’t actually been used by Ethiopia, it is potentially a massive collision problem if Ethiopia and/or ICANN decide to make it a problem for some reason. To be clear, I don’t think this is likely, but it is a possibility to consider.
Why Get a Web3 Domain?
I’ve previously covered ENS for my BlockChain Reaction subscribers in an NFT deep dive that I did in August. In that piece, I explained why public blockchain ledger allows peer to peer payment no matter which app the end user chooses:
It doesn’t matter if the user I’m sending it to uses MetaMask, Exodus, Brave, Atomic, Edge or something entirely different. As long as I have the correct wallet address character string, I can send it to that user.
The problem…
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