Ethereum Name Service
Crypto Overview
Purpose and Utility
The Ethereum Name Service (ENS) is a decentralized domain naming system built on the Ethereum blockchain. Its primary purpose is to convert complex cryptocurrency wallet addresses into human-readable names (e.g., 'john.eth' instead of '0x123...abc'). ENS tokens grant governance rights over the protocol.
Business Model Assessment
The core business model involves users registering and managing .eth domain names, with registration fees going to the ENS treasury. The protocol operates transparently on the Ethereum blockchain, with all operations and governance decisions visible on-chain. The service does not involve any inherently prohibited activities like gambling or interest-based lending.
Real-World Adoption
As of 2024, ENS has over 2.8 million registered domains and is integrated with major wallets and dApps across the Ethereum ecosystem. The service is actively used for wallet identification, website hosting, and decentralized identity verification.
Platform Development
The ENS protocol maintains active development with regular updates and improvements. The GitHub repository shows consistent activity, and the development team regularly implements protocol upgrades based on community governance decisions.
Token Distribution
ENS tokens were distributed through an airdrop to early users and domain holders. The protocol treasury holds approximately 50% of tokens, with the remainder distributed among the community. Team members and early contributors received tokens with vesting schedules to ensure long-term alignment.
Crypto Impact
To assign a comfort level investing in Ethereum Name Service from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Ethereum Name Service.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.