The Benefits of ENS Domains: What Are They?
ENS domains are the new hot thing in the decentralized world. Go on Twitter and not long after, you will see a person with the last name .eth. That’s an Ethereum address that comes with a domain name that you can use. Pretty cool, right?
The Ethereum company started ENS as a side project, and now, as people (early adopters) are getting airdropped thousands of dollars in ENS tokens, it seems more and more like a humongous thing. The organization has recently announced that it will be forming a DAO (decentralized autonomous organization) along with the ENS token distribution to .eth domain holders.
The point is, the people building this massive infrastructure have the guts to show their vision to others and reward everyone who participates.
Benefits of owning an ENS domain
Once you get your registration on the ENS website, your e-mail address is registered and can’t be changed or deleted. As a token holder, you are in control of your domain name for the rest of the time. For example, you could use your domain to build your own blockchain. Or you could run a startup, or you could be part of a media site. It doesn’t really matter what you do with your domain, you can be safe in the knowledge that it will stay with you in perpetuity.
The ENS Foundation (a not-for-profit organization) will be responsible for registering new domains, where possible. However, if a domain isn’t registered, it will become available in a new “slug” scheme. As is the case with any new technology, there will inevitably be grifters who try to grab names and sell them for profit.
Future of ENS domains
Now, how about some more exciting ENS history? ENS was a $100K private donation, with another $20K from the community. Now, it seems the entire community is throwing money into it.
This is where things become interesting. The price of ETH is now over $4k, and at the current rate, each ENS domain will pay out $110K in ETH. There is a situation where, as the funds are being transferred from investors to the ENS development team, ENS may die before it is fully built.
Why is this? Because Ethereum is too big and not fully developed to handle this enormous burden. The entire network of nodes needs to be upgraded to handle all the incoming transactions, and it is not quite there yet.
We see all the positive stuff here:
dAPPs are able to run on Ethereum. This isn’t like websites where you download the app and then host it on a website. They are running code on the same platform.
Doing something innovative for .eth owners. It is a cool decentralized system and now they are rewarding the people who have helped build it!
How do you feel about this? Do you think ENS domains are something the world needs in 2017? Do you think it will ever be like .com?