You’ve heard of GoDaddy, right? The company is the largest domain name provider in the world, renting everything from .com to .edu names to the public for an annual fee. Essentially, if your name is John Doe, and you want to launch JohnDoe.com, chances are that you’ll go to GoDaddy to buy the name.
Well, one of the reasons GoDaddy is such a massively popular company is that it was one of the first to get in the space. You see, the pioneer of any industry will be the guy to beat. After all, any competitors late in the game will be one step behind the pioneer, as long as the pioneer continues to innovate and produce compelling offerings.
So, what’s that got to do with NFTs and Web3? Nothing, but it explains why ENS, a service provider on the blockchain, is so important.
What Is ENS?
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ENS is a decentralized service that gives cryptocurrency, NFT, and Web3 enthusiasts a way to buy names on the blockchain, .eth names to be exact. However, unlike GoDaddy, the company doesn’t just offer website naming capabilities, Web3 enthusiasts can name their wallets. That’s a huge opportunity, here’s why:
At the moment, if you want to transfer a digital asset from one person to another, or wallet-to-wallet, you need the wallet ID for the destination it’s going to. But that wallet ID isn’t something easy to remember like “JohnDoe.eth”, it’s a long code like “asdoinnviubaerg9d2as3lxss09utgnlqw3x.”
Now, let’s say you traded often with the same group of people. How many of the codes above do you think you’ll be able to remember? Personally, I’d have to study like a calculus student that was a week behind to remember one!
The ENS service brings practicality to digital wallets, making it possible to trade within a group and easily remember wallet names.
Another problem with the current system is that if you type one letter or number in the code wrong, the asset you send will be sent to the wrong wallet, or maybe no wallet at all, never to be seen again. However, simplifying wallet names largely solves this problem because you’ll be much less likely to mistype an easy-to-remember wallet name.
ENS Is Live
ENS has been around for a short while, and plenty of early adopters have started using names issued by the company. However, the company just launched a coin, and made a huge splash when it did.
That token named ENS was launched, and when it did, the company gave away a massive amount of them to early adopters. All those early adopters had to do was claim their tokens, and from several reports on twitter, many received between 100 and 300 ENS when they claimed their stake… and it was all absolutely free!
And still is. Learn more here.
So, what’s the big deal about a free token? Well, the token isn’t exactly free. Sure, it was given to early adopters of the ENS service, but since the announcement, it has traded between $40 and $50. That means that people who received 300 free ENS actually received tokens worth $12,000.
Now that’s a chunk of change!
It’s called the ENS Air Drop, and many are saying, “wait, that doesn’t make sense. I buy a $50 name and get $12,000 worth of digital assets?” Well, in Web3 it does make sense. The company is paying early adopters to help govern and promote its system, and not everyone will get the 300 token drop. In fact, there’s no clear indication of how many tokens users will get. What we do know is that the amount of tokens you get will be based on three criteria:
- How long they’ve owned their ENS domain name;
- how long their ENS domain name is registered for; and
- whether a ‘reverse record’ is set for the name.
The Bottom Line
The bottom line here is that early adoption of the blockchain has been a great thing for most participants. There have been bitcoin millionaires, ethereum millionaires, BAYC millionaires, and the like. Now, the next big wave of millionaires may be the early adopters of ENS and .eth domain names.