This NFT Just Made Sending Crypto Funds Easier
|By Joel Kruger|
One facet of the internet that we tend to take for granted is domain names — namely, the easy-to-remember word(s) that take you to a website.
With a handy tool called the Domain Name System, we can easily access websites instead of memorizing a long string of numbers — aka the site’s IP address — to navigate the internet.
Now, if we apply this concept to crypto, it’s like how you’re required to enter a long string of numbers and letters to send funds to someone’s wallet or to receive funds.
An easy workaround — akin to the crypto version of a domain name — didn’t exist.
That is, until now.
Enter the launch of Ethereum Name Servicedomains. ENS has actually been around since 2017, but the service became user-friendly just recently, making its popularity increase over the past year or so.
With this service, you can now search for and register your desired Ethereum (ETH, Tech/Adoption Grade “B”) address name and have that linked to your wallet.
So, instead of having a clunky address that looks something like this …
You can now register a name that’s linked to that jumble of numbers and letters, leaving you with a simpler, memorable ETH address. You can even check if you can use your name as your ETH address (e.g., johnsmith.eth)!
How it works is just as simple.
Buying an ENS domain is effectively buying a non-fungible token. You buy the domain, and it sits in the wallet you registered that domain with — just like an NFT would. And if you go check OpenSea after purchasing your ENS domain, you will see it listed as an NFT in your wallet.
Then, the next time someone sends you funds, they can simply enter your ENS domain into MetaMask instead of the string of letters and numbers that compose your wallet address. From there, the system will recognize the ENS domain name is linked to your wallet.
Alternatively, if you’re the one sending funds, having that person give you their ENS domain name will produce the same result.
If you’re interested in getting an ENS domain for yourself, head on over to the app here.
Once you’re there, go ahead and connect your wallet. Then, you will be able to search for whatever ENS domain name you like. If it’s available, you will then be able to follow a few steps and officially register the ENS domain name as yours.
You can register the name for as many years as you want, though the price will increase with the length of time. For example, registering a name for one year will cost around $12–$15, while three years will cost $22.
Like regular domain names, prices also vary based on the number of characters in your ENS name. The fewer the characters, the more expensive. But unlike regular domain names, with ENS domains, you can also use symbols, emojis and other characters to make up your ENS name.
The steps are laid out clearly on the site, and in total should only take you a few minutes.
Once done, voilà! You now have your very own ENS name that you can give out and share, without needing to worry about that long string of numbers any longer.
It’s also worth noting that ENS has a token of its own, under the ticker name ENS. The token is currently trading around $16, and it’s classified as a governance token.
That means the owners of the token have the right to participate in votes around the governance of the project, while also benefiting from revenue earned by the project, which has the potential to be paid out to holders by way of a dividend.
At this stage, our models aren’t showing it as a screaming value play, but I encourage you to do your own research into it, as well.
For now, go ahead and give the ENS app a whirl and set up that ENS domain name if you’re looking to make sending and receiving cryptos much easier.
Until next time,