Updated on January 9, 2023 12:51 PM
The scope of web 3.0 is at the height of Everest, as seen by many domain experts and tech geeks. The future holds a lot for these blockchain-related naming systems, which show excellent user engagement.
According to a recent survey, the demand for Ethereum domains appears to be increasing in July, with over 126,141 registrations occurring in the first week of the month. This renewed popularity has resulted in a significant increase in the Ethereum Name Service's revenue (ENS).
Let'sLet's first get into Web 3.0 domains.
Web3 domains are different from traditional DNS addresses. Because DNS functions similarly to a telephone directory, it only indexes public websites and their associated internet protocol (IP) addresses to enable the guide.
Web3 Domains are web extensions (similar to.com or.info) introduced as smart contracts on public blockchains. Some domains, for example, are ERC 721 on the Ethereum blockchain and Polygon Network.
Web3 Domains, like cryptocurrency, are stored in the owner'sowner's wallet and cannot be taken away by a third party. You only have to pay once and own the domain for life with no additional charges.
A Web3 domain can also host a website, secure email forwarding, and as a single sign-on technique for various apps, games, metaverses, and other services.
In the meantime, the Ethereum naming system has captured the web 3.0 domain market. Let'sLet's see what ENS is.
ENS is a blockchain-based alternative to Domain Name Service (DNS). ENS functions similarly to DNS, allowing users to generate a simple username to convert machine-readable strings, such as a wallet address, into something more memorable.
ENS names were previously exclusively available through auctions, but they can now be acquired and rented in the same way as any other domain name. Prices vary according to the length of the word you choose to obtain. Each ENS name ends in .eth and can be associated with several cryptocurrency addresses. It'sIt's also limited to wallet addresses.
The registry and resolvers are the two main components of ENS.
The ENS registry is comprised of a single, smart contract that keeps track of all domains and subdomains and holds three essential bits of information about each:
A domain'sdomain's owner might be either an external entity (a user) or a smart contract. A registrar is a smart contract that holds a domain and issues subdomains of that domain to users that satisfy the contract'scontract's terms.
Resolvers are in charge of actually transforming names into addresses. Any contract that implements the appropriate standards may serve as an ENS resolver. General-purpose resolver solutions are available for users with simple requirements, such as supplying an infrequently changing address for a name.
The Ethereum name service is yet a further step toward enabling blockchain connection. Given the growing acceptance of digital assets among investors and the use of ENS, we may see a significant increase in ENS names, similar to how we have switched to using online domain names rather than IP addresses to access the internet. Web3 hosting is anticipated to make firms more open and user-centric in their interactions.
With the ongoing progress and expected acceptance of Web3 domain names, the Ethereum-based decentralized domain name system may eventually replace the existing web DNS.