14 May 2018

NEO Name Service (NNS) Switches To GAS For Domain Bids

NNS Economic Model Change

NEO Name Service (NNS) has recently announced that it has changed its model with bids for domain names to be made using GAS rather than NNC tokens. In the past, NNC was used to place bids for domains with the holders of NNC getting back system domain auction revenue that is made out in the form of NNC tokens.

However, at this point in time NNS will only allow GAS to be used in placing bids for domains and holders of NNC tokens will get system domain auction revenue in form of GAS tokens. If you are not yet familiar with what NNS is all about on the NEO blockchain, then it will be important to have a brief review of their operations for you to appreciate the importance of this change in their model.

 

What Is NNS?

The NEO Name Service or NNS is an open source, distributed naming system that is powered by NEO blockchain technology. It is the vision of NNS to substitute Smart Contracts (ScriptHash) and wallet addresses which have the tendency of being difficult for people to remember with phrases or words. These phrases or words are much easier for people to remember or memorize. NNS initially provides an ending in “.neo” alias name service.

With the NEO Name Service you don’t have to memorize wallet addresses or Smart Contract Hash. In order to make a transfer from your wallet or to make use of the Smart Contract of the NEO Smart Economy, all you need is a word or phrase.  

 

Why Is NNS Important?

  • NNS helps to resolve complex blockchain addresses that are not really human – friendly because they are too long, difficult to remember/put to memory and are not easy to compare in order to know if they are correct or wrong.
  • Through the NEL community the usability of the NEO blockchain will be enhanced with the NNS service in place.
  • As the number of users on the NEO blockchain rises due to its ever growing popularity. The problems of the complex addresses will be more pronounced, but NNS is on hand to resolve this.

 

Domain Name Registration Through Bid-Auction

NNS provides a bidding service through the use of Smart Contracts on the NEO Smart Economy. With the goal being to determine who is able to register a second-level domain name. There are 4 stages involved in this service and they include; opening a bid, placing a bid, revealing a bid and winning a bid.

  1. Opening a bid: To open a domain name bid, the domain name must…
  • not be registered already.
  • not be expired.
  • not violate domain definition.

The opening of bid means that the right of ownership of a domain name can commence through bidding.

  1. Placing a bid: The second stage is placing a bid which takes place for a duration of 72 hours. A standard address or account can place a bid by submitting an encrypted quote and then make a deposit. Under the previous NNS economic model this deposit would have been made with NNC tokens, but now they have to be made with GAS tokens.
  2. Revealing bid: After the expiration of the 72 hours for the placing of bids. The revealing of a bid is done within the next 48 hours. At this stage bidders will send the quoted plaintext as well as the encrypted string plaintext to ratify the bidder’s real bid. As soon as the bid is revealed the GAS deposit will be returned after the system cost has been deducted. Where the bidder does not reveal a bid, it would be assumed that the bidder has conceded the bid.
  3. Winning bid: Once the revealing bid period is over. Bid winners will then obtain ownership of the domain name through a transaction.

 

NEO Smart Economy And GAS

The NEO Smart Economy is an economic model where Smart Contracts are written in code and then automatically executed. This is instead of an agreement made between humans and executed by humans. This is a transparent, secure, cost efficient system for transaction and on the NEO blockchain. With the NNS domain name registration bid-auction service, users engaging in the Smart Contract don’t need to memorize their ScripthHash, they just need to input a word or phrase to proceed with the contract.

GAS tokens were established with a similar maximum supply as the base cryptocurrency of NEO. It incentivizes people to hold on to NEO as it will gradually accrue in their accounts over a period of time and this is also dependent on the amount of NEO they hold.

GAS is a requirement for launching Smart Contracts as well as other forms of dApp on the NEO network. It is because of this basic requirement that NNS has modified its economic model to accommodate GAS for domain name bid-auction instead of NNC. GAS tokens like many other cryptocurrencies except NEO tokens (which are divided into integers of 1, 2 and 5) can be subdivided into several decimals. It also has a number of utilities that further enhances it’s value in the NEO Smart Economy and it’s expected to reach the 100 million milestones by 2039.

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