What is a Domain Name Service? 

During the early days of the internet, one of the pain points faced by the average internet user was that domain names (i.e. Altify.com) and internet protocol (IP) addresses did not match up. What that meant is if you wanted to access a website, you would need to type out the full IP address of the site you wanted to visit, such as 56.233.192.161. Since IP addresses are just strings of numbers and dots that are long and difficult to remember, it made it hard to browse the web. This issue was addressed in the 1980s with the Domain Name System (DNS) creation. In simple terms, DNS matches IP addresses with human-friendly domain names. For instance, instead of typing 56.233.192.161, you can simply type “Altify.com” into your search bar and be directed to the website.

Ethereum as the new internet

We are now witnessing the third iteration of the internet through Ethereum. Ethereum is the world’s second-largest crypto project by market capitalisation and was the first to introduce smart contract functionality to the industry. Ethereum's goal is to become a world computer that hands back control to users with the help of a blockchain. Developers can use Ethereum to build leaderless applications, meaning that these service creators, such as Facebook, cannot tamper with or share a user’s data. 

Despite all the technological advancements in the crypto sector, cryptocurrencies mostly use a system similar to the old IP address setup. For example, If you want to send your Bitcoin to someone else’s address, you will have to use that person's wallet address instead of something human-friendly like the wallet owner’s name. This opens the door for human error when sending crypto from one wallet to another, and human error in crypto transactions can result in the complete loss of funds.

That’s where the Ethereum Name Service (ENS) comes in.

What is Ethereum Name Service (ENS)? 

The Ethereum Name Service (ENS) is a distributed, open and expandable naming system that interacts with the Ethereum blockchain. Similar to the DNS mentioned above, the role of the ENS is to map human-readable names such as "Ben.eth" to a machine-readable name such as a wallet address like "8g978dl39ji9xl." Through the ENS, users can buy and manage their own domains, meaning that secure and decentralised transactions can take place without having to deal with long and complex addresses. This significantly reduced the likelihood of input errors when typing out the recipient’s address to send funds. 

Why is ENS important? 

Through the ENS, names and addresses become more transparent and easier to interact with. Anyone can create or register a ".eth" domain by participating in an auction. The highest bid will win the domain name, allowing the winner to create subdomains and lease the domains.

That gives users on the Ethereum blockchain a unique opportunity to set up shop on the Ethereum network and become a clear point of contact within a sea of addresses. Furthermore, ENS was developed for Ethereum smart contracts and doesn't suffer from security issues faced by a DNS system. DNS records of domains and names are stored on a centralised server which means they are prone to hacks. Ethereum is a distributed network which significantly reduces any security risks posed to the platform. 

As Ethereum prepares for the upcoming merge this month, the number of Ethereum Name Service (ENS) addresses created has surged after crossing the 1.8 million mark in August of 2022.

Following the total ENS names and participating addresses post Ethereum merge will be interesting. 

Ethereum Merge update 

The long-awaited Merge upgrade to Proof-of-Stake is still set to take place on the 14th of September 2022. On the same day, The Altify analyst team will guide you through Ethereum and the significance of the merge. Learn what Ethereum can offer you as an investor: How the Merge will add value to Ethereum’s future and how the technology behind it is powering the smart contract revolution.

Register here: https://Altify.wiki/3U78lCo

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