Crypto market is in Bear Market, and the NFT market is also depressed, with single-day NFT trading volume dropping from a peak of $3.26 billion to around $150 million. However, in the cold of the market, the ENS Domain name has emerged as an ” independent market” with a recent surge in trading volume and large buy orders.
The second-largest .eth domain sale was when “000.eth” was bought on July 4 at 300 Ether (ETH), which was worth around $320,000 at the time of sale. The highest selling Ens Domain in history was “paradigm.eth” at 420 ETH, which corresponds to Paradigm, a well-known crypto investment fund.
The strong start in September follows an impressive ENS sales month in August, which saw more than 300,000 new “.eth” registrations and monthly revenue of 2,744 ETH, the third-highest month since ENS was founded in 2018.
What is the Ethereum Name Service (ENS)?
The Ethereum Name Service is a distributed, open and expandable naming system that interacts with the Ethereum blockchain.
Similar to the role of the DNS, the role of the ENS is to map human-readable names such as “uni.eth” to a machine-readable name such as a wallet address like “5asdfdl23vsd9xl.”
Through the ENS, users can buy and manage their own domains, meaning that secure and decentralized transactions can take place without having to deal with long and complex addresses. It also reduces the likelihood of any input errors when typing out the recipient’s address to send funds.
Now, the ENS may sound identical to the DNS system developed in the 1980s, but its architecture differs greatly.
Like the DNS, the ENS uses a system of hierarchical names called domains, with the creator and owner of the domain having control over his top-level domain and subsequent subdomains.
Compared to traditional domain names of the past, ENS domains also have a variety of utilities.
One is to act as a receiving address, capable of receiving a variety of blockchain-based assets.
Second is the value of NFT empowerment, ENS domain name not only has the function of identity proof but also has DIY form. People can create and trade their own names, which makes ENS Domain Names have the attributes of NFT creation, trading and so on.
The third is the practical scenario applications, such as web hosting, decentralized websites, hosted IPFS sites, subdomains, etc.
Fourth is identity representation, ENS domain name can not only store your personal data and other information but can also be the business card of all digital resources.
Fifth is the formation of communities. People with the same attributes form a community DAO. For example, the 10k Club in this digital war, their members all have four-word domain names, three-word domain names, and many Influencers, with a large number of blue-chip NFTs, they use ENS domain names as a sense of belonging to form a community.
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Welcome to “Bixin Q&A”, a talk show launched by Bixin Wallet, mainly focused on the cryptocurrency market. Bixin will invite friends in the industry to express their opinions together. Some of them are senior practitioners, some are technical developers, and some are market traders. They are all active in the market and can provide the latest valuable information in the market.
In each issue, Bixin Talk will select a hot issue to discuss, analyze it from multiple dimensions, and help you filter the value points.
Our aim is to “gather more views and seize more opportunities!”
Bixin also welcome you to use Bixin wallet to manage cryptocurrency assets, Website: www.bixin.com
In this issue, Bixin Talk interviewed two Web3ers from the top 100 universities in the world. The first is Justin, a Stanford Alumni who is a crypto researcher. And the second is Jenny, an NYU Alumni who is a Web3er. They are both active members of the Bixin community.
Why is ENS important?
Justin: Because the ENS was developed for Ethereum smart contracts – and is native to the Ethereum ecosystem – it doesn’t suffer from security issues faced by a DNS system. DNS records of domains and names are stored on a centralized server. That means they are prone to hacks. Conversely, ENS records cannot be destroyed and are secured by the Ethereum Blockchain.
Jenny: Through the ENS, names and addresses become more transparent and easier to interact with. Anyone can create or register an “.eth” domain by participating in an auction process. The highest bid will win the domain name, allowing the winner to create subdomains as well as lease the domains.
Why can ENS survive in Bear Market?
Justin: ENS has the full support of the Ethereum Foundation. Long strings of Ethernet addresses are difficult to remember and trade, and having an ENS domain name makes for a better experience in the Web3 world. In addition, ENS does not charge royalties and are not controlled by a fully centralized entity. Ens 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.
Jenny: Based on the number of Web3 user wallets and the actual number of ENS registrations, the need for one ENS domain name is still far from being met. People recognize the importance of domain names on the Internet, as well as the very low gas free in recent times.
A good product can cross bull and bear market cycle, and ENS is NFT 2.0.
Why is ENS Valuable?
Justin:Many well-known people have used their ENS names as Twitter usernames, such as Ethereum founder Vitalik Buterin (vitalik.eth), basketball star O’Neal (shaq.eth), and more. Some brands have also deployed here. Budweiser has acquired the ENS domain name Beer.eth for 30ETH, and Puma has changed its Twitter account name to Puma.eth.
Jenny: If NFT is compared to a car, then BAYC may be a supercar, and ENS may be a license plate, and some license plates are even more expensive than cars. On top of that, the scarcity and “show-off” of ENS is something special. In the real world, special numbers like 8888,001 have demonstrated a strong willingness to pay for rarity, be it a license plate or other entity.
The above is all the answers of the two interviewed guests in this issue. The high popularity of ENS in recent months is largely due to the entry of hot money and speculators, but there are reasons to believe that the value of ENS itself will not be a flash in the pan. In addition, ENS domain names are difficult to be priced. Domain name meaning, commercial value, coverage, awareness, shortness and cleanliness are all factors that can determine the value of a domain name, especially when purchasing a domain name or a domain name with a premium after squatting expires Investor must not only take decisive action on potential domain names, but also do some research in advance to find a suitable price range.
If anyone has a personal opinion to share on cryptocurrency, feel free to contact Twitter: @Bixinwallet.
This post first appeared on Timesnewswire, please read the originial post: here