NFT Labs: Application Scenarios of NFT(Domain)

NFT Labs: Application Scenarios of NFT(Domain)

The domain name

On August 1, Tiffany purchased ENS domain name tiffany.eth at the price of nearly 330K CNY, which attracted more and more people inside and outside the circle to pay attention to ENS application.

Before this, there are zhifubao.eth, games.eth, apple.eth and many other domain names, sold millions of RMB sky-high price. Some say it is the identity of the Web3 world, decentralized and irreplaceable; There are also questions that it is too Fomo, controlled by whales, and the premium is serious.

“ENS is the most successful non-financial Ethereum-like application to date, which can be likened to a decentralized phone book,” Vitalik has said. As one of the most extensible and understandable applications of Web3, I think you will have your own understanding of whether it is so wonderful or not.

V God twitter name is vitalik.eth

Why do you need ENS？

In a sense, Domains have been one of the most valuable digital assets in the history of the Web. Just as many ENS domains have sold for a fortune in the past, Sky Dayton and Jake Winebaum bought the Business.com domain for a fortune of $7.5 million back in 1999 (a deal that was largely baffled and ridiculed at the time), It sold for $345 million in 2007. As the Web world evolves, a domain name is like a virtual identity, or a code name for an (IP) address.

In the early days of the Internet, people used IP addresses to find websites. Without domain names, we might not be able to enter Baidu by typing baidu.com, but by typing https://36.152.44.95, a jumbled string of numbers.

However, the traditional DNS (Domain Name System) still has some centralized problems in nature. Some centralized entities will buy back some domain names through analysis and sell them to the original holders at a higher price (or even directly revoke their addresses). And centralized storage has drawbacks, both from technical security (DDos attacks, etc.) and usage security (whether the domain name has a black history, etc.). If it is based on blockchain, it can solve some of the pain points of traditional domain names.

What is ENS？

ENS is like the identity of the Web3 world. It should be mentioned here that ENS (Ethereum Name Service) does not represent all blockchain domain names, but up to now it has occupied more than 70% of the blockchain domain name market share, so when it comes to blockchain domain names, our first reaction is ENS.

Launched on May 4, 2017 by Alex Van de Sande and Nick Johnson of the Ethereum Foundation, ENS is a distributed Domain Name service protocol based on Ethereum. It provides a secure and decentralized way to Map a simple human-readable domain name (labsnfte.eth) to an Ethereum address. ENS is built on ERC721 protocol, and each ENS domain name is also an NFT; As a naming service, ENS converts irregular Ethereum addresses into readable text strings, similar to DNS domain names, that are easier to remember.

If Web3 becomes mainstream and (partially) decentralized in the future, ENS will be even more valuable. Imagine a peer-to-peer chat where all you have to do is search for xxxx.eth to find the contact you want to find, rather than an 18-digit irregular address starting with 0x; And because each ENS is unique, there is no need to worry about finding the wrong person. Currently, each ENS can record various elements including email, web address, profile and social information. As a result, ENS is also known as the calling card of the Web3 world.

Why is ENS all the rage again？

In fact, since the end of April this year, ENS has begun to have a great improvement, the trading volume has surged dozens of times, the base price of three-digit, featured and rare domain names has doubled and doubled, and even once topped the NFT trading volume list, 000.eth was sold at 300 ETH in June. Budweiser, Tiffany, Opensea and other large manufacturers spent hundreds of thousands of dollars to buy ENS domain names.

Data source: nftgo.io

The reasons why ENS is popular again are as follows:

1. Money needs a place to go. Before the NFT market was too hot, the metaverse, chain travel, PFP, 3D and other hot spots too many to catch up, users naturally busy “rush” hot projects. At a time when the overall NFT market is in decline, users are starting to pay attention to ENS again.

2. The market cools. ETH Gas even went as low as 5 Gwei in early August. The registration cost of ENS is dependent on Gas, so lower Gas makes the registration cost of ENS lower, and more users take the opportunity to register in large quantities.

3. Fomo. The news that many ENS domain names are sold at a high price has greatly stimulated users' emotions. At the same time, there are so many possibilities for random combinations of domain names that many users who register ENS domain names in large quantities are betting that Web3 will go mainstream and ENS domain names will increase in value.

4. Establishment of 999 Club (a Club with three pure digital ENS holders) and 10K Club (a club with four pure digital ENS holders). The two clubs jointly carried out large-scale publicity and promotion of ENS domain name on the Internet, including BAYC and other blue-chip holders, and the Fomo mood of users was soon ignited.

Read so many readers must be eager to try, so how to get a ENS domain name belongs to their own？

How to get an ENS domain name？

First, go to the ENS official website: https://app.ens.domains/, and link your little fox wallet (those who don't have a little fox wallet can check out: NFT Beginner's Guide - taken from the public account NFTGo).

Then Search for the domain name we want in the blank space, such as sophianft, and click Search. If the domain name is Available (it has not been pre-empted), it will appear available on the new page.

When we click on the domain name, it will show us the current GAS-based registration fee, which we can choose or renew at any time. After that, we need To click “Request To Register” in the bottom right corner.

After that, we just need to confirm in the fox, wait for the transaction to be packaged, and make a second confirmation, and you can get your own domain name in about a minute. Below for registration before labsnft. Eth (nftlabs. Eth didn't grab), after the DNS link Mirror (or other applications), also can have more convenient display, such as: https://mirror.xyz/labsnft.eth.

Note that the shorter the character length of the ENS domain name, the higher the fee. For domain names of 5 characters or more, the annual renewal fee is $5 / year; A 4-character name costs $160 a year; Three-character names cost $640 a year.

Therefore, the previous text will mention the word “bet”, after all, large-scale hoarding of a few characters ENS domain name also has a certain cost.

Conclusion

Many people's doubts about domain names have been gradually eliminated with Binance and other Web3 giants entering domain names.

Of course, there are still problems with zero-width characters and rare domain names being monopolized by whales, but if we keep our focus on applications rather than short-term hype, ENS will naturally help you get a better handle on Web3.

Now that the whole Web3 is still in its infancy, registering and collecting a few favorite ENS domain names is also a very participatory experience.