Many people don’t know what ENS names are; never mind what they are used for or the function they provide. With Ether at a lower level than normal, now might be a good time to purchase one.
Ethereum Name Service or ENS simply put eliminates the need to copy the long addresses by replacing them with unique domains. This means you can send money to friends or from an exchange to example.eth instead of the long addresses we have all become familiar with. 0xA38E70762D64bfc99105625570e9478D7a2b76d4
Using an ENS name assists with eliminating mistakes when sending coins and the need to keep long, complicated lists of contacts. In addition to the ability to send money via an ENS, it can be used to interact with friends using this same domain name.
Purchasing an ENS is a relatively simple process but it does require a small investment of time and money. If you don’t currently own an Ether you can head over to CoinBase to purchase some. In order to obtain one of these domains, you must use an auction process running on the Ethereum blockchain, anyone can participate in this process. The auction used is similar to a sealed bid auction that operates in three stages.
In the first stage, the domain buyer starts an auction for a name they want to buy and the minimum bid amount is .01 ETH plus the price of gas for the transaction. The name itself must be at least 7 characters in length. This portion of the sealed auction lasts for three days. In a sealed auction, the bids are private and no one can see how much you bid or even the name on which you are bidding. When this stage is over, the participating bids are revealed for an additional two day period. You will need a little more ether in your wallet to cover the gas cost of the reveal as well. During this time, all bidders must reveal the details of their bid or lose their bid entirely.
If your bid is not the winner with the highest amount, you have your bid refunded, minus a 0.5% fee. At the end of this two days, the highest bid wins but the winner actually only pays the amount of the second highest bid. The amount paid gets locked into a contract for as long as the winner keeps control of the domain name. The winning bidder must then finalize a transaction to receive their applicable refund of any excess funds and to be given control of the domain name in ENS.
you are required to reveal the details of this bid in the 48 hour period
It is important to remember that once you place a bid, you are required to reveal the details of this bid in the 48 hour period after the initial sealed process of 72 hours or, your bid is lost entirely and the ether burned. Additionally, when you bid is revealed, access to your private key/account and other information that was created at the time of bidding is required.
Once you have won your auction you must attach the name to a wallet address by setting up a resolver. This step can be done on the MyEtherWallet website as well. This is the most complicated part of the process and must be done correctly for the transfer to work. I suggest you transfer a very small amount of ether between a pair of your own wallets before you start fully using your new ENS name.
I personally prefer MyEtherWallet for the auctioning process to buy ENS domains. You can go to their website and choose “ENS” from the main menu, search for your desired name and follow the steps.
There are many websites now that buy and sell these name like normal domains for the web. One of the largest and most well-known is Name Bazaar. We are still in the very early stages of ENS names and many great ones will still be available.
As the popularity of cryptocurrencies grows and more people are using wallets, I feel that an ENS name or a different altcoins equivalent will become the norm and more in demand. What do you guys think, do you plan on using ENS or do you currently use an ENS?
The video listed below will walk you through all the steps needed. The video also covers adding your ENS name to the resolver once your auction is successful.
If you like this article, why not have a look at this one