It is now possible to utilise domain names on the blockchain using the Ethereum network. Ethereum Name Service (ENS) provides the decentralised world will secure domain names through using non-fungible tokens (NFTs). This is applicable to Ethereum addresses, IPFS hashes and website URLs.
Previous domain owners with names ending with .eth, .lux and .xyz (dating back to 2017) had to migrate over to ENS, which launched in May 2020. The ENS domains can also be traded on secondary markets, as owners can use their token assets.
The lead developer of ENS is Per Nick Johnson. One of the primary aims of ENS is to look to increase the popularity of the Ethereum ecosystem by allowing owners to link their domains to corresponding blockchain-based systems, further to them being connected with wallet addresses or smart contracts. The total migration of the Ethereum domains is around 300,000 alone.
The change in adopting a tokenised approach by ENS allows the user to select a domain name then engage with the registration process. This is aimed at simplifying and reducing the time spent on the overall registration process
Ethereum developers have structured the mined transactions at one-minute intervals to prevent any front running during the overall process. Site owners with over seven characters in their domains will now be required to pay a $5 annual fee, as a solution to prevent potential land grabs. Their process will also include three steps as this will include an auction. Ethereum will annually generate around $250,000 from registration clients with over seven characters in their domains.