Bitcoin Name Service — Making Web3 Addresses Easier to Read

Following the example of Ethereum Name Service (ENS), BNS gives users the ability to associate Bitcoin public addresses with human-readable names. This helps make the Bitcoin blockchain more approachable for the wider public.

What is Bitcoin Name Service?

Bitcoin Name Service (BNS) is a decentralized application running on the Bitcoin blockchain. It’s built on the Stacks Layer 2 network, which extends the Bitcoin network’s capabilities. BNS offers the ability to register unique .btc domain names, which are stored securely as hashes on the Bitcoin blockchain.

By simplifying the user experience, BNS enhances cryptocurrency accessibility. Instead of cumbersome, hard-to-read addresses, users can interact with easily identifiable names, making the entire process smoother. This makes BNS an excellent tool for both experienced users and those just beginning to navigate the crypto market.

The system is powered by the Stacks network, which uses the *Proof of Transfer consensus mechanism. This technology allows smart contracts and decentralized applications (dApps) to be seamlessly integrated into the Bitcoin ecosystem, maintaining its security and stability. With the help of smart contracts, BNS automates name registration and management, ensuring a reliable and convenient service.

*Proof of Transfer (PoX) is a one-of-a-kind consensus mechanism connecting Stacks blockchain with Bitcoin. Miners use BTC as collateral to maintain the security of the Stacks network and validate transactions. STX stakers are rewarded with BTC, making it possible to build decentralized applications that take advantage of Bitcoin’s unmatched security and stability.

Learn more about exotic consensus algorithms in our article “Exotic consensus algorithms: PoA, DPos and others“

How the STX Token Powers the BNS Ecosystem

The STX token is a cornerstone of the Bitcoin Name Service ecosystem, supporting its functionality. It is used to pay for transaction fees, register domain names, and interact with smart contracts.

Operating within the Stacks blockchain, which is closely tied to the Bitcoin network, STX serves as a bridge, providing users access to decentralized services and allowing for smart contract integration and data storage within the Bitcoin ecosystem.

The staking function of STX is a noteworthy feature, as it enables users to earn BTC rewards. This functionality makes STX a compelling token for not only network participants but also investors seeking to maximize their returns using the power of decentralized technology.

With STX, the process of registering and managing names within the BNS framework becomes both quick and transparent. Users can easily add STX tokens to their wallets to register a .btc domain and then utilize it for multiple applications, such as creating subdomains or integrating with websites.

Why BNS is Beneficial

A primary goal of BNS is to simplify how users interact with decentralized applications (dApps) and web3 services. Instead of managing long and complicated Bitcoin addresses, users can register a personalized name that connects directly to their wallet.

Alongside its convenience, BNS bolsters security. With all data recorded on the blockchain, the risk of alteration or loss is nearly nonexistent. This is particularly crucial as cryptocurrency adoption grows, and the risks tied to these assets continue to increase.

How to Register a .btc Domain?

To sign up for a .btc domain with Bitcoin Name Service, simply visit www.xverse.app and follow these steps:

1. Configure Your Wallet: The first step is to link a BTC-compatible wallet to the platform, such as Xverse, Leather Wallet, or Hiro. These wallets support the STX tokens used to register the domain names.

2. Fund Your Wallet: Once your wallet is ready, fund it with STX tokens, which can be purchased on well-known CEX exchanges like Binance, Coinbase, Kraken, or Upbit. (As of now, the token’s price is $1.40).

3. Name Selection and Registration: Go to BTC.US to browse available .btc names. If the name you want is available, it can be registered for a fee of 2 STX, which grants you five years of domain ownership.

4. Finalizing Name Registration: Once you have chosen a name, link your wallet to the BTC.US platform to complete the registration. Depending on whether you opt for the basic or premium plan, the process could require one or two transactions.

Pricing Plan Overview

Two registration plans are available for users:

1. Basic Plan: Perfect for beginners, this plan requires little time to set up and enables users to register their name without additional configurations. However, it does require manual creation of zone files to bind the name to a top-level domain.
2. Advanced Plan: Tailored for experienced users, this plan automatically generates the necessary zone files. While it is more expensive and involves two transactions, it offers more opportunities for integration with other platforms.

BNS Integration Possibilities

One of the distinguishing features of Bitcoin Name Service is its ability to associate .btc domain names with websites or other online resources. For example, if you register myname.btc, you can link it to myname.com.

This means that users can easily access the site by entering myname.btc in the browser’s URL bar. This functionality makes BNS particularly valuable for entrepreneurs, developers, and those in the decentralized tech space who aim to make their resources more accessible.

To wrap up, Bitcoin Name Service provides a simple way to enhance your blockchain experience with a readable name. However, it’s important to keep certain risks in mind.

BNS has been in the market for over a decade, having launched in February 2014, but its core functionality only gained real traction about a year ago. As a result, the .btc domain market may not be as liquid as expected, and developer support may still be in its early stages. Moreover, should BNS see continued growth, the cost of registering .btc names could rise.

On the flip side, the outlook for BNS holds great promise. More and more users are recognizing the advantages of simplifying blockchain interactions. The widespread use of simple, memorable names could soon be the norm for crypto wallets and dApps, while the adoption of STX will drive the growth of the Stacks ecosystem and likely increase the value of its native token.