Leading Development of Ethereum Name Service (ENS): Potential Behind Decentralized Domain Names
Although not widely known by the general public, decentralized domain names such as ENS and .eth domain have shown high levels of increased demand across the web3 ecosystem and decentralized web. The domain also serves as the top-level domain (TLD). In November of 2022, there were over 70,000 domain name registrations of .eth domains. The reason behind such results is speculated due to the benefits that these domain names have for investors and companies. By registering for an ENS domain, users can securely create, obtain ownership, and manage domain names and numerical IP addresses. The usefulness of decentralized domain names benefits overweigh the cons as it continues to grow and add value to the specific area of Metaverse.
By obtaining ownership of domain names, users can direct create subdomains to allow for multiple web pages to be enveloped within a whole domain name. In addition, no manual invention is involved so there is the option to customize freely on branding, web3 “wallets”, accessibility, and tracking. Trademark holders can manage the domain names by measuring security and developing identification procedures. Web 3.0 is a playground for infringements of intellectual property rights. The lack of governance and centralization has made cybersquatting all the easier. Thus, registering the decentralized domain name that corresponds to the trademark will be a way to protect it on Web 3.0, to avoid a third party can buy it to sell it at a high price, especially since the wording of trademarks is often not adapted to those of Web 3.0. This function makes more sense as there is no administrative procedure for recovering a Web 3 domain name registered in fraud of a trademark right.
Decentralized domain name technology powers blockchain networks and can potentially revolutionize how transactions are conducted in the future of 2024 and beyond for business networks. As the evolution continues in the blockchain technology industry, blockchain technology from applications such as blockchain applications, to supply chain management, digital identity verification, and comprehensive smart contracts, the world can expand a new way of conducting business.