ENS Research Report

Research summary:

ENS is an open source blockchain based naming protocol that started in 2017. It was part of the Ethereum foundation that decided to split ways at the end of the prior bull run.  We will focus on how the project works, what value it adds, and review its pros and cons.

The CMP is $8.25 as of 1st July 2022 

What is ENS and how does it add value?

When it comes to Ethereum and Web 3 applications, there has always been a barrier for new users. New users often find these platforms quite complicated and technical. If the prices of their coins weren’t so volatile, this industry might not be where it is now as it would not have a lot of eyeballs.  

To use the Ethereum network or any Web 3 application based on Ethereum, you need to have an Ethereum address. An Ethereum address is equivalent to a Gmail account or a Facebook account when it comes to signing up or logging into a website. You can also receive or send any Ethereum based tokens, NFTs and Ethereum itself for a certain gas fee to these addresses.

Here is Vitalik Buterin’s (One of the founders of Ethereum) Ethereum address.  


Given that the blockchain is completely transparent, we know that the address currently holds 3,203 Ethereum + $3 million worth of Altcoins.

The aspect of having a 30+ character address is often unappealing and this is where ENS comes into the picture. Let’s say that I am the founder of Shiba Inu and I want to send some of my tokens to Vitalik. To do this I will need to input his address. The chances of a mistake are quite high and it is quite difficult to remember what the address is. This is definitely true for new people coming into this ecosystem.

ENS assigns a name to an address, so instead of typing in 0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045 to send money to Vitalik, you can just send it to Vitalik.Eth

Imagine if you had to type in a bunch of numbers to reach a website instead of youtube.com, the adoption of the internet would have been extremely slower than what it is today.  

Perhaps a better comparison would be to look at email ids. Email ids are extremely essential to the existing internet. You need it to send and receive communications and it is THE IDENTITY required to use any website that requires a login. If the email ids would have been 0xa8346ngslnmeawp80174Ac91fkLAD1@gmail.com instead of this vitalik@gmail.com. Internet’s adoption would be decades behind.

Does this have a future?

If Ethereum is going to be the foundation of Web3 applications (which is the future of the internet), it will require naming protocols to simplify the world of web3 applications.

Just like how Domain names simplified the internet, similarly ENS would simplify Web3. There are already 1.12 million names already integrated.

Is this service Free?

The Ethereum name service does not provide its services for free. They charge for the address name and the cost moves up along with the duration of the purchase.

It will cost me $500 to register a name for 100 years.

What is the utility of the ENS token and who are the competitors?

ENS is the native token to the decentralized platform and it acts as a governance token. Token holders have the power to propose powers and voting powers. It has a maximum supply of 100 million ENS tokens out of which 20% is in circulation.

ENS was widely popular as 25% of its circulating supply was airdropped and the prices instead of crashing kept on going towards the upside.

It has 57,996 token holders and the top account holders are exchanges.

ENS is not alone in this space and has competition. The biggest competition is the Unstoppable domains.

Team, Media, and community strength.

ENS is a DAO that is represented by a non-profit ENS foundation that is based in the Cayman Islands. It is however managed by the overall ENS token holders.

ENS has a strong community strength. They have 189.7k Twitter followers and they have an active medium channel. Their media strength is also quite strong as most of the celebrities buy an ENS domain after buying an NFT.  


Pros: ENS is working on one of the most basic solutions that are likely to eliminate barriers to entry. It has cemented itself as a 1st mover within this industry. ENS is the 1st thing that pops into people’s minds when people talk about crypto domain names. The token holders aren’t extremely concentrated compared to other decentralized applications.

Cons:  ENS has locked itself to the Ethereum network and a person cannot buy a domain name, rather you can only rent it for a certain duration. During the bear markets, ENS’s growth is dependent on the growth and adoption of Web 3.0. This might stall or fall during such a time period as prices (Which is the main driver to bring people into the crypto space) take a hit.