Get Your Name On The Blockchain With Ethereum Name Service
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Any idea what this is? Well, if you want to interact with me in the decentralized world, you are gonna have to use that address! Whether you want to send me an email, transfer money, or find me in the metaverse đÂ
However, not really practical, is it? I mean, if you bump into me on the streets (in the physical world) I wouldnât be able to remember that on top of my head. I usually keep my public wallet address in my notes on my iPhone and copy paste that whenever I need it. But still, not ideal.Â
This problem is similar to the one we had with websites. I mean, have you ever caught yourself saying you found an interesting read on 208.80.154.224?Â
If you do, you are a special one, my friend. For all of us mortal, we know that IP address as Wikipedia!
So, in a similar fashion, imagine being able to interact with me in the decentralized world just by using marionatella.eth!
Good new is – you can!Â
Iâm actually the owner of marionatella.eth!!
And Iâm definitely not the only one.
- Gucci has claimed right to gucci.eth
- Nike to nike.eth
- Puma to puma.eth
- Budweiser to beer.eth
Establishing a more human-friendly naming convention is very important to further increase adoption on the blockchain technology. In the future, every website will most likely have their equivalent on the blockchain (for example, on the Ethereum network).
How To Get Your Domain Name
Getting your own domain on the Ethereum blockchain is possible thanks to ENS: the Ethereum Name Service. The name is similar to the DNS (Domain Name Service) used on the internet.
Go to app.ens.domainsÂ
You type the domain you want to register.
It checks for its availability.
If available, you go ahead and register it on your wallet.
VoilĂ , you Ethereum domain is stored in your wallet as a unique token (typically referred to as NFT)!
As of this article, there is 2,62 million domain names registered on the Ethereum blockchain. And its adoption is increasing more and more, despite the current bad sentiment in the crypto market.
There is still a lot of speculation around what will be possible with your blockchain domain. But this is because we are still not sure about how the technology will evolve and what exact role it will play in our lives. However, one thing is clear, you Ethereum domain name is your âaddressâ, your âidentityâ for everything that will happen on the Ethereum blockchain network.
Ethereum Name Service Fair Price & Future ValuationÂ
ENS business model is pretty simple: owners pay a yearly fee (upfront) to keep ownership of their domains. Since the beginning of 2022, ENS generates close to $ 4,25 million revenue per month. At this rate, the expected yearly revenue from domain registration can be as high as $ 51 million.Â
Next to that, they generate an additional $ 3 million revenues from sales on the NFT marketplace OpenSea. The total sales volume is currently at $ 10 million per month with a 2,5% fee for ENS.
In their latest announcement, however, ENS will extend their services to allow trading of domain names on their own secondary market!
Assuming a revenue multiplier of 100x, we estimated ENS valuation at $ 5,4 billion. With 100 million ENS tokens in circulation, a fair token price would be $ 54.
Obviously, ENS potential is much more than this!Â
There are close to 360 million domain names on the internet! This means that the internet domain market is almost 140x bigger than the Ethereum one! So there is definitely room for growth, depending on how well Ethereum will do in the coming years. You can read my latest article on Ethereum’s valuation here.
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Disclosure
These are unqualified opinions, and this newsletter, is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor, and do your own research.
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