How New Blockchain Apps Make It Easier To Use DeFi
June 25, 2021
When transacting on Ethereum, users typically interact directly with cryptographically generated addresses—long strings of alphanumeric characters that are difficult to recognize and almost impossible to remember. The Ethereum Naming Service (ENS), an open-source, community-owned, and non-profit blockchain naming system, solves those problems and can even reduce a user's fear of crypto.
Similar to the way web users replace numerical IP (Internet Protocol) addresses by registering easy-to-read domain names through the Domain Name Service (DNS), blockchain users can replace long Ethereum addresses with shorter, memorable names registered through the ENS. Imagine no longer having to copy an address from one source and paste it into another.
Registering a name using the ENS is simple and offers anyone the benefits of convenience and improved security when engaging with decentralized finance applications (dapps) and other users.
Every address on Ethereum acts as an identifier for a blockchain account, and each one can be named and registered. Because every name is unique and owned solely by the registrant, each takes the form of a non-fungible token (NFT), a digital asset known primarily for its role in the digital art and collectibles scene. Registered names as NFTs prove authenticity and can even offer owners the benefit of profitability (more on that below).
The native suffix for ENS records on the Ethereum mainnet is “.eth (e.g., ethereum.eth). The .test suffix is available for use by developers on testnet. ENS can also be used with some DNS names owned.
Name owners can create subdomains, enabling multiple users (e.g., john.defiservices.eth and jane.defiservices.eth) and/or use cases (e.g., accounting.defiservices.eth and support.defiservices.eth) under each domain. They can also give control of a record to other users while still maintaining ownership.
The Ethereum Naming Service, therefore, isn’t just a service for Ethereum; it’s a broader Web3 service built on Ethereum.
Anyone can reserve and register a name on ENS in minutes. The cost, as of this writing, is $5 in ETH per year for 5+-character .eth names—more for scarcer three- or four-character .eth names—plus Ethereum gas fees. The fees collected from registrations are held in a community-controlled multisig account to potentially be used for future ENS ecosystem project development.
In the following video, the ENS’s Brantly Millegan provides a walkthrough of the name registration process:
Once a name is registered, it can be used with any wallet, dapp, or browser that has integrated the ENS standard, including Coinbase, MetaMask, and Uniswap.
The benefits of ENS registration are many:
Registering a memorable name to replace a long, hard-to-remember Ethereum address can simplify the transaction experience and make accessing blockchain technology more enjoyable. With more and more DeFi services integrating ENS and similar initiatives, Web3 is becoming more user-friendly all the time.
To start exploring the DeFi world, visit www.MakerDAO.com/ecosystem.