Vitalik Buterin Reveals The Importance Of Ethereum Name Service, ENS Token Price Immediately Soars 50%

ENS tokens experienced a significant increase. (Photo; Doc. Today crypto)

JAKARTA - The Ethereum Name Service (ENS), a decentralized domain name service running on the Ethereum blockchain, experienced a significant price increase on January 3, 2024. This was triggered by support from Ethereum co-founder Vitalik Buterin, who called ENS a "very important" service and had to be "affordable".

According to data from Bitcoin.com Markets, ENS tokens rose more than 50 percent a day, from $8.28 (Rp 128,600) to $16.01 (Rp 248,700). This is the highest level ever achieved by ENS tokens since its launch in March 2023.

Buterin, who also has a 'vitalic.eth' domain at ENS, expressed its support through platform X (formerly Twitter). In X's post, Buterin emphasized the importance of ENS to be accessible and affordable, especially on layer two (L2) networks such as Optimism, Arbitrum, and Polygon.

For your information alone, L2 is a scalability solution that allows Ethereum transactions to be processed outside the main chain (mainnet) at lower costs and higher speeds. According to Bitcoin.com, to use ENS in L2, a CCIP (Cross-Chain Interoperability Protocol) resistor is required. The CCIP resolator is a protocol that facilitates communication and resolution of data between different blockchain networks.

With the CCIP resolator, users can register, update, and read ENS subdomains directly on L2, without having to return to the mainnet. ENS subdomains are human-readable names that replace complex alphanumeric wallet addresses. For example, if you have 'example.eth' domains, you can create subdomains such as 'dompet1.omen.eth' and 'dompet2.examp.eth'.

ENS is a decentralized naming service that functions similar to traditional DNS (Domain Name System) on the internet. However, in contrast to DNS controlled by central authorities, ENS is fully owned and operated by the Ethereum community. ENS can not only complete domain names to Ethereum addresses, but also to other information such as IPFS addresses, social media profiles, and personal data.

ENS is expected to increase the ease of use and adoption of Ethereum, by providing a flexible and secure digital identity for users. In addition, ENS can also open new opportunities for developers and entrepreneurs to create ENS-based applications and services. Some examples of apps that already use ENS are Uniswap, MetaMask, OpenSea, and Etherscan.