The Ethereum Name Service (ENS) is a decentralised service powered by blockchain technology on the Ethereum network. It transforms Ethereum addresses, typically lengthy combinations of numbers and letters, into easily understandable names.
Core Functionality: ENS fundamentally links easily remembered names (e.g., john.eth) with machine-readable identifiers, including Ethereum and other cryptocurrency addresses, content hashes and metadata. Acting much like the internet's Domain Name Service (DNS), but built upon the Ethereum blockchain, ENS guarantees both decentralisation and resistance to any form of censorship.
Decentralisation Features: In contrast to the centralised and hierarchical structure of traditional DNS, ENS leverages a distributed network. This framework not only bolsters security but also significantly minimises the risk of censorship or external interference by any centralised entity.
Domain and Subdomain Management: Through auctions or set-price sales, users have the opportunity to acquire .eth domain names, which are essentially non-fungible tokens. Domain owners are then capable of generating subdomains (for instance, subdomain.john.eth) for a range of applications, such as wallet identification, decentralised website hosting or establishing a digital identity within the Ethereum environment.
Governance Structure: The ENS DAO oversees the governance of ENS, enabling token holders to engage in decision-making processes. This participatory governance model guarantees that any alterations to the ENS framework or policies reflect the collective agreement of its community.
ENS Balance Sheet Overview
ENS’ Wallet holdings Overview:
Beyond boasting impressive financial earnings of $15.4 million in 2023, the company also has current wallet holdings of $209,169,375 across the above variety of assets.
ENS and GoDaddy, a leading company in domain registration and web hosting, have recently formed a partnership. This collaboration is designed to link the traditional DNS with ENS's innovative blockchain-based naming system seamlessly. Thanks to this alliance, users are now able to freely connect their GoDaddy domains with their ENS names, integrating DNS with ENS and further into the Web3 ecosystem. This integration aims to simplify the association of domain names with cryptocurrency wallets, thus enabling domain owners to delve into blockchain technology with minimal technical expertise. This initiative marks a pivotal advancement in closing the gap between conventional domain services and the blockchain, promising a more cohesive and user-friendly experience.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.