Next bubble in ENS domains
In the early days of the internet, people searched web sites by their IP addresses. Imagine remembering and typing the IP address of every site that you have to visit, what a nightmare! This is why DNS addresses were created, to map human friendly names to websites.
Fast forward to modern day where blockchain and crypto is changing the world. We are back to square one. Just like the early days of internet where IP addresses were how you visited websites, today we have hexadecimal wallet addresses that go something like 1BoatSLRHtKNngkdXEeobR76b53LETtpyT.
Ask any crypto user what a pain it is to remember their own and others wallet address every time. Yes crypto users can use QR codes instead but these ridiculously long wallet addresses present a barrier that needs to be overcome.
Ethereum Name ServiceThis is where ENS(Ethereum Name Service) comes into play. Ethereum Name Service (ENS) addresses are used to map human friendly names to Ethereum addresses. ENS domains provide a naming structure similar to DNS, but on the Ethereum blockchain. These domains can be used to send and receive payments, as well as for smart contracts, NFTs and decentralized applications(dApps).
ENS domain is the ethereum equivalent of a "domain name." That is, it's a human-readable way to address ethereum resources, like wallets and smart contracts. Just as you wouldn't want to have to remember a long string of numbers every time you wanted to visit a website, it can be helpful to have an ENS domain for your ethereum wallet or contract.
ENS domains are also useful for ethereum applications and NFTs in particular; for example, an ENS domain can be used as an application's or NFTs "address" on ethereum, making it easier for users to find and interact with the app.
Imagine if you want to name your NFT spacemonkey, you can simply buy the ENS spacemonkey.eth, if this isn`t available then you can simply buy any variation such as spacemoney4000.eth.
This makes it extremely easy to remember and manage crypto assets.
ENS Domain SquattingENS domain squatting is the practice of registering ethereum domains in the hopes of selling them later at a higher price. This is similar to traditional domain squatting, but with ethereum domains there is an additional layer of risk.
Ethereum domains are not regulated by any central authority, and as a result they are often subject to scams and fraud. This means that ENS domain squatters must be careful to only register domains that they intend to sell, and to avoid any sites that might be associated with fraudulent activity.
Nonetheless, ENS domain squatting can be a profitable investment opportunity for those who are willing to take the risks. By carefully selecting domains and monitoring the ethereum market, ENS domain squatters can stand to make a significant profit.
Why Ethereum Name Service Is Seeing a Spike in Domain Registrations
The registrations follow a record-breaking ENS sale, one research firm pointed out.
ENS bubbleThe ENS bubble is the current hype and speculation around ENS domains. Just like with traditional domains, there is a limited supply of top level ENS domains. This has led to a situation where people are registering and selling ENS domains for profit.
While there is no guarantee that the ENS bubble will continue to grow, it is currently one of the hottest trends in the cryptocurrency space. 2022 has already been wild, around 163,000 ENS names were registered in April alone. By 2nd May, the milestone of 1 million registered ENS names was achieved and with this milestone ENS also claimed the throne for the number 1 gas burning ethereum protocol(previously OpenSea had the number 1 spot).
Based on latest stats, at present roughly 20,000 ENS names are being created on a daily basis. The total value of all ENS domains has been estimated to be around $500 million.
ENS names that have 4 digits or less are considered as premium names and there are roughly 10,000 of such names in existence right now.
- abc.eth90 was sold for ~$255,000
- 555.eth55.5 was sold for ~$162,000
- 005.eth50 was sold for ~$146,000
How to buy a ENS domain?Here are some simple steps to buy your own ENS domain.
- Get a crypto wallet such as MetaMask.
- Make sure that you have at last $50 in your wallet. (This is the minimum one year registration fees)
- Go to https://app.ens.domains/ to search and buy your first ENS domain
- Search for the name of your choice.
- If the name is not available you can search for a variation or use the suggested variation.
- Select the number of years for which you want to register the name. Gas fees will apply everytime you renew your registration, which is why it is cheaper to buy multiple year registration.
- Press "Request to register"
- Select the gas fees.
- Click confirm.
- A waiting page will open, track the green bar and wait till the bar has completed loading.
- Once the waiting is over, click on Register to register your ENS name.
- Click on Manage name
- Click on "Set" under resolver
- Then click on "Use public resolve" and click save and then click on confirm.
- Go to records, click on drop down menu and select address.
- Paste your address in the field and then click on save.
What's next for ENS domains?As the popularity of ENS domains continues to grow, we can expect to see more innovation around them. In particular, we are likely to see more applications and NFTs using ENS domains as their "address" on ethereum. This will make it even easier for users to find and interact with these applications and NFTs.
We may also see more development around ENS domain squatting, as people look for ways to profit from the bubble. Ultimately, the future of ENS domains is linked with blockchain, which means that this is not just a "bubble". This is a new way of using the internet, and it's here to stay.