The Ethereum Naming Service (ENS) received the 3rd largest amount of revenue in 2022 during the month of August.
According to an ENS Twitter post, the service was responsible for 99% of OpenSea domain volume amongst several other stats:
- 301K new .eth registrations (total 2.17 million names)
- $4.7 million in protocol revenue all of which they said will go to the @ENS_DAO
- 2,744 $ETH in revenue (3rd highest month)
- 34K new ETH accounts w/ at least 1 ENS name (total 540k)
- >99% of OpenSea domain volume
This data comes ahead of the Ethereum’s widely awaited Merge event whereby the Ethereum mainnet will merge to a Proof-of-Stake Consensus Layer that has been tried out since December 2020.
The new layer will replace the original Proof-of-Work layer, and is expected to significantly increase the ease of doing transactions on the smart contracts network.
According to the Ethereum website, the Merge will reduce Ethereum’s energy consumption by ~99.95%.
This is expected to be a boon for all kinds of users of the platform:
- Better energy efficiency – You don’t need to use lots of energy mining blocks
- Lower barriers to entry, reduced hardware requirements – You don’t need elite hardware to stand a chance of creating new blocks
- Stronger immunity to centralization – Proof-of-Stake should lead to more nodes in the network
- Stronger support for shard chains – A key upgrade in scaling the Ethereum network
Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the Ethereum blockchain. ENS converts human-readable Ethereum addresses like john.eth into the machine-readable alphanumeric codes you know from wallets like MetaMask.
As such, users get to link these names also to their wallets, and they can then use it for transactions across the blockchain, including the purchasing of NFTS and participating in DeFi. The tokens can also be purchased as non-fungible tokens (NFTs).
The goal of Ethereum Name Service is to make the Ethereum-based web easier to access and comprehend for humans – similar to how the Internet’s Domain Name Service (DNS) makes the internet more accessible.
Like DNS, ENS also uses a system of dot-separated hierarchical names called domains with domain owners fully controlling their sub-domains.
