Introduction to ETH domains
.eth domain names have grown quicker than traditional domain names comparing proportional quarterly growth state. In September 2022 alone there were 437,000 new domain registration generating over $5.5 million in revenue.
The Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the Ethereum blockchain. They facilitate the creation and operation of .ETH domain names.
ENS’s job is to map human-readable names like ‘yourbrand.eth’ to machine-readable identifiers such as Ethereum addresses, other cryptocurrency addresses, content hashes, and metadata. ENS also supports ‘reverse resolution’, making it possible to associate metadata such as canonical names or interface descriptions with Ethereum addresses.
ETH Hype and Growth
To date, over 2.2 million total ENS names have been created amongst 546,000 unique users. In the last seven days, ENS notched 2,565 ETH ($4 million) trading volume on OpenSea, which was higher than the BAYC’s 1,934 ETH ($3 million), Otherdeed for Otherside’s 1,767 ETH ($2.8 million), and CLONE X’s 1,353 ETH ($2.1 million).
The dramatic surge in .eth domain name registrations has led ENS to outperform ETH over the past three months by more than 40%.. Unstoppable Domains community has registered over 2.5 million total domains, transacted $80 million in primary sales, and the project supports over 275 tokens and 370 applications.
Betting on .ETH’s bright future, buyers invest in these new forms of web domains with the intention of selling them at higher prices to companies that will unavoidably have to do business in the decentralized world. On the secondary NFT marketplace OpenSea, which accounts for 97% of all .ETH sales, three and four-character .ETH names find buyers at very high prices, like 555.eth, which was sold for $150,000 recently.
How do .ETH domain names work?
ENS is built on two Ethereum smart contracts. The first smart contract is the ENS registry, which records all the domains registered on ENS and stores three critical pieces of information about each domain: the owner of the domain, the resolver for the domain, and the caching time for all records under the domain. The second smart contract is the resolver, which translates the domain names to the machine-readable addresses and vice versa. This second smart contract matches each domain to the corresponding user, website or address.
Do .ETH domains need to be renewed?
.ETH domain name can be renewed or extended from between 1 year to 99 years in theory, depending on your budget and strategy. Anyone can choose to extend your domain name by paying for the renewal