What is Solana Name Service? All You Need to Know About FIDA
Solana Name Service (FIDA) allows users to create simple, readable domain names on the Solana blockchain, making wallet addresses easier to use.
As blockchain technology becomes more mainstream, simplifying user interactions is crucial. One of the key challenges in cryptocurrency and blockchain is the complexity of wallet addresses, which are long and difficult to remember. This complexity often leads to errors during transactions. To address this issue, blockchain projects have introduced decentralized naming systems, allowing users to create easy-to-read, human-friendly domain names that link to wallet addresses. These solutions enhance user experience and improve the accessibility of decentralized applications (dApps). One such solution is the Solana Name Service.
What is Solana Name Service (FIDA)?
Solana Name Service, formerly known as Bonfida, has been a significant contributor to the Solana ecosystem. Bonfida was established to enhance Solana’s blockchain capabilities, starting with developing the Asset Agnostic Orderbook (AOB), a new Serum Core engine that allowed for more flexible and efficient order management across multiple assets. This advancement positioned Bonfida as a key player in Solana’s trading infrastructure.
One of Bonfida’s major achievements was the launch of Audaces, Solana’s first perpetual swap, introducing complex financial instruments to the network. This feature broadened Solana’s utility and opened up new trading opportunities. Additionally, Bonfida simplified user interactions with Solana’s blockchain by enhancing the usability of the Solana Name Service (SNS), providing more accessible blockchain navigation, and improving the overall user experience.
In July 2024, Bonfida officially rebranded itself as Solana Name Service (SNS), focusing on becoming the best-decentralized blockchain naming service. With this rebranding, SNS expanded its vision, focusing more on user-friendly navigation and decentralized naming solutions. Their open-sourced smart contracts and commitment to transparent, community-driven innovation set them apart from competitors in the decentralized identity space.
SNS also improved its global navigation system, making the user experience on sns.id more seamless and mobile-friendly. Integrating .sol domains on GoDID, a popular Ethereum name service aggregator, further increased exposure and accessibility for users. With these advancements, SNS is pushing the boundaries of decentralized identities while enhancing Solana’s blockchain ecosystem.
How Does Solana Name Service Work? Registration and Trading
The Solana Name Service (SNS) simplifies registering domain names on the Solana blockchain, providing an accessible and user-friendly system that anyone can utilize. The registration process allows users to acquire their desired .sol domain, which can be used for various on-chain activities, such as receiving funds or hosting decentralized websites. This service fundamentally enhances the Solana ecosystem by creating human-readable identities, much like traditional domain services on the internet but decentralized and fully integrated with Web3 technology.
To begin, users can search for available domain names through the sns.id website. The platform offers an intuitive interface, including filters and a bulk search function, making it easier for users to find available domain names. Domains can be registered directly on the platform if they have not been previously owned. Users can also explore secondary markets or opt for certified sellers if a domain is already taken.
Users can register once a domain is selected by adding it to their cart and selecting a payment method. Domain purchases are one-time payments, meaning users won’t worry about recurring fees. Pricing varies depending on the domain’s length, with premium rates for shorter, more sought-after names. For example, a 1-character .sol domain costs around $750 USD, while a 5+ character domain costs $20. Payments can be made using Solana’s native SOL tokens or $FIDA tokens, with the latter providing a 5% discount on purchases.
Source: docs.sns.id
Beyond simply owning the domain, users can customize their domain storage size, which allows for the storage of different types of on-chain data. Options range from 1 KB for basic uses, such as transactions, to 10 KB for more advanced uses, such as linking to an IPFS-hosted website. Storage options give users flexibility in how they use their domain and how much data they store within the Solana blockchain.
After registration is complete, users can immediately start using their .sol domain. Whether it is used for receiving tokens, linking to a decentralized website, or associating it with a public identity, SNS makes on-chain navigation simpler and more intuitive. The domain automatically links to the wallet address used during the transaction, ensuring that ownership and control remain secure.
In addition to standard registrations, the platform safeguards against scams, particularly around emojis or variation selectors that could be manipulated to deceive buyers. Users can confidently navigate the platform knowing that suspect domains will be flagged.
Overall, SNS aims to simplify blockchain interactions and offer the foundation for a more personalized and accessible Web3 experience. By registering a .sol domain, users have a gateway into decentralized applications (dApps) and interactions, creating a more humanized and secure experience on the blockchain.
Trading
The Solana Name Service (SNS) also facilitates an active and efficient trading ecosystem for .sol domains, enabling users to buy, sell, and exchange domains on secondary markets. Trading domains is a core feature of SNS, allowing users to leverage the increasing value of unique or premium domain names in a decentralized, transparent manner.
Once users own a .sol domain, they can list it for sale on sns.id or on popular Solana NFT marketplaces such as Magic Eden, Solanart, and Tensor. Before listing, users must “wrap” their domain into an NFT, transforming it into a tradable asset. This wrapping process ensures the domain can be securely traded on NFT platforms while retaining all its functionalities, such as linking to a wallet address or resolving to a website.
Trading on SNS follows a maker-taker fee model, similar to other decentralized exchanges (DEXs). In this model, users who provide liquidity to the market, known as “makers,” are charged lower fees or sometimes even receive rebates. In contrast, “takers,” who reduce liquidity by purchasing or accepting offers, pay a higher fee. The specific fee structure is determined by the amount of $FIDA tokens held by the user, offering fee reductions for those who hold more $FIDA.
Source: docs.sns.id
There are several methods of trading domains on SNS. The most common is fixed-price reselling, where sellers list their domain at a predetermined price. Buyers can browse these listings and purchase domains directly, with ownership transferring automatically to the buyer’s wallet upon transaction completion. Alternatively, users can engage in unsolicited offers, where they make a bid on a domain even if it is not officially listed for sale. This allows for passive trading opportunities, as domain owners may choose to accept offers at any time.
Another innovative feature is category offers, where buyers can place bids on entire categories of domains, such as all 3-character .sol names. Sellers who own domains within these categories can sell their domains instantly at the offered price, creating a fluid and dynamic marketplace.
Peer-to-peer (P2P) trading is also available for more customized transactions. In this model, users can directly negotiate trades with others, exchanging domains and adding SOL tokens. P2P trades are secured through escrow accounts, ensuring that both parties complete the transaction fairly.
Through its robust trading mechanisms, SNS provides liquidity, value, and accessibility to decentralized domain ownership. It allows users to fully participate in the emerging economy of Web3 identities fully, further enhancing the utility of the Solana blockchain.
Solana Name Service Use Cases
The Solana Name Service (SNS) provides many practical applications in the rapidly growing Web3 ecosystem. By linking human-readable domain names to blockchain addresses and other on-chain data, SNS makes interactions on Solana more user-friendly. Here are three key use cases of SNS:
- Simplified Crypto Payments: Instead of using complex, lengthy wallet addresses, users can send and receive Solana (SOL) and other Solana-based tokens by referencing an easy-to-remember .sol domain. This reduces the risk of errors and simplifies transferring assets between wallets.
- Web3 Identity and Branding: SNS domains serve as on-chain identities for individuals, projects, and businesses. By using a .sol domain, users can create a recognizable and personalized Web3 presence, which is particularly useful for branding, online interactions, and building trust in decentralized environments.
- Decentralized Websites and Hosting: Users can link their .sol domains to decentralized websites hosted on platforms like IPFS or Arweave. This allows the creation of censorship-resistant websites that can be accessed through browsers like Brave or other compatible services, giving users control over their online content in a decentralized manner.
Through these use cases, SNS helps bridge the gap between traditional Web2 practices and the decentralized, permissionless nature of Web3, enhancing both user experience and blockchain accessibility on Solana.
Solana Name Service Main Features
The Solana Name Service (SNS) provides a range of tools and capabilities that enhance the user and developer experience on the Solana blockchain. Here are its main features:
SNS SDK
The SNS Software Development Kit (SDK) provides a set of tools to help developers interact with and integrate SNS domains into decentralized applications (dApps). With support for various programming languages such as JavaScript, Rust, Python, and more, the SDK simplifies the process of registering and resolving domains. Developers can leverage the SDK to connect users with human-readable domain names, interact with records, and integrate SNS features seamlessly into their dApps. The extensive documentation also ensures that developers, regardless of their preferred programming language, can effectively integrate SNS functionalities into their projects.
SNS Improvement Protocol
The SNS Improvement Protocol (SNS-IP) is a collaborative platform for developers and the community to propose, discuss, and track new features or improvements to the SNS. By submitting proposals, developers can contribute to the protocol’s ongoing evolution. Each proposal goes through several stages, from drafting to community review and eventually implementation or rejection. This open-source approach ensures that the SNS continues to evolve based on the needs of its users, with a focus on transparency and community-driven development.
Cross-Chain Domain (Experimental)
The Cross-Chain Domain feature allows users to bridge their .sol domains to other blockchain networks like Injective, BNB, and Base via the Wormhole protocol. This innovative feature enhances interoperability by allowing users to perform cross-chain transactions using their .sol domain, simplifying the user experience. Whether registering a domain directly on another chain or bridging an existing one from Solana, users can seamlessly manage their domain names across multiple blockchains, fostering greater interconnectedness and cross-chain utility.
Source: docs.sns.id
What is the FIDA Coin?
FIDA is the native utility token of the Solana Name Service ecosystem. Its maximum supply is capped at 1 billion units, of which 138.17 million are already in circulation (September 2024).
The FIDA coin is crucial in the Solana Name Service (SNS) ecosystem. Launched with a maximum supply of 1 billion tokens in December 2020, FIDA’s distribution has been carefully managed to ensure long-term sustainability and growth. With 95.4% of the total supply locked for up to four years, FIDA ensures there are no large net sellers in its early stages. Only a small percentage was allocated to liquidity providers and Initial Exchange Offerings (IEOs) to maintain market stability.
One of FIDA’s key utilities is its ability to provide fee incentives for holders. It offers reduced trading fees on the SNS platform. Users can also enjoy a 5% discount when registering domain names, making it a valuable token for those actively participating in the Solana Name Service ecosystem.
Additionally, FIDA tokens are regularly burned, which reduces the overall supply over time. The burning mechanism uses stablecoins to buy and burn FIDA in on-chain markets, further supporting its value.
Source: bonfida.org
FIDA will play an important role in governance as SNS plans to implement decentralized decision-making through quadratic voting. This shift in governance will empower FIDA holders to participate more effectively in the future direction of the SNS ecosystem, combining FIDA’s utility with broader community governance initiatives. By September 2024, FIDA has proven its value as a versatile token within the growing SNS ecosystem.
Is FIDA a Good Investment?
FIDA has strong potential due to its integral role in the Solana Name Service ecosystem, offering unique utilities like reduced trading fees, discounts on domain registrations, and participation in future governance. The token burn mechanism also reduces its supply, which could increase its value over time. However, one potential drawback is its high token lock-up rate, with 95.4% of tokens initially locked, which may affect liquidity and market dynamics. Additionally, its reliance on Solana’s ecosystem poses risks if the network faces challenges or competition.
How to Own FIDA?
To own FIDA, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy FIDA.
News on Solana Name Service
This news was released in July 2024, marking a major milestone for Solana Name Service (SNS) as it officially rebranded from Bonfida. The team reaffirmed their commitment to being the best blockchain naming service. SNS also celebrated the open-sourcing of its smart contracts, enhancing transparency and accessibility for developers. Additionally, a global navigation improvement was launched on sns.id, making the mobile experience more seamless. Lastly, SNS .sol domains were integrated into the GoDID marketplace, further expanding the reach of the Solana ecosystem.
Useful References
For the latest updates about Solana Name Service, you can visit:
Take Action on FIDA
Check out FIDA price today, and start trading your favorite currency pairs.
Related articles
What Are Altcoins?
What Is Ethereum 2.0? Understanding The Merge
What Is Dogecoin?
What is Solana Name Service? All You Need to Know About FIDA
What is Solana Name Service (FIDA)?
How Does Solana Name Service Work? Registration and Trading
Solana Name Service Use Cases
Solana Name Service Main Features
What is the FIDA Coin?
Is FIDA a Good Investment?
How to Own FIDA?
News on Solana Name Service
Useful References
Take Action on FIDA
Solana Name Service (FIDA) allows users to create simple, readable domain names on the Solana blockchain, making wallet addresses easier to use.
As blockchain technology becomes more mainstream, simplifying user interactions is crucial. One of the key challenges in cryptocurrency and blockchain is the complexity of wallet addresses, which are long and difficult to remember. This complexity often leads to errors during transactions. To address this issue, blockchain projects have introduced decentralized naming systems, allowing users to create easy-to-read, human-friendly domain names that link to wallet addresses. These solutions enhance user experience and improve the accessibility of decentralized applications (dApps). One such solution is the Solana Name Service.
What is Solana Name Service (FIDA)?
Solana Name Service, formerly known as Bonfida, has been a significant contributor to the Solana ecosystem. Bonfida was established to enhance Solana’s blockchain capabilities, starting with developing the Asset Agnostic Orderbook (AOB), a new Serum Core engine that allowed for more flexible and efficient order management across multiple assets. This advancement positioned Bonfida as a key player in Solana’s trading infrastructure.
One of Bonfida’s major achievements was the launch of Audaces, Solana’s first perpetual swap, introducing complex financial instruments to the network. This feature broadened Solana’s utility and opened up new trading opportunities. Additionally, Bonfida simplified user interactions with Solana’s blockchain by enhancing the usability of the Solana Name Service (SNS), providing more accessible blockchain navigation, and improving the overall user experience.
In July 2024, Bonfida officially rebranded itself as Solana Name Service (SNS), focusing on becoming the best-decentralized blockchain naming service. With this rebranding, SNS expanded its vision, focusing more on user-friendly navigation and decentralized naming solutions. Their open-sourced smart contracts and commitment to transparent, community-driven innovation set them apart from competitors in the decentralized identity space.
SNS also improved its global navigation system, making the user experience on sns.id more seamless and mobile-friendly. Integrating .sol domains on GoDID, a popular Ethereum name service aggregator, further increased exposure and accessibility for users. With these advancements, SNS is pushing the boundaries of decentralized identities while enhancing Solana’s blockchain ecosystem.
How Does Solana Name Service Work? Registration and Trading
The Solana Name Service (SNS) simplifies registering domain names on the Solana blockchain, providing an accessible and user-friendly system that anyone can utilize. The registration process allows users to acquire their desired .sol domain, which can be used for various on-chain activities, such as receiving funds or hosting decentralized websites. This service fundamentally enhances the Solana ecosystem by creating human-readable identities, much like traditional domain services on the internet but decentralized and fully integrated with Web3 technology.
To begin, users can search for available domain names through the sns.id website. The platform offers an intuitive interface, including filters and a bulk search function, making it easier for users to find available domain names. Domains can be registered directly on the platform if they have not been previously owned. Users can also explore secondary markets or opt for certified sellers if a domain is already taken.
Users can register once a domain is selected by adding it to their cart and selecting a payment method. Domain purchases are one-time payments, meaning users won’t worry about recurring fees. Pricing varies depending on the domain’s length, with premium rates for shorter, more sought-after names. For example, a 1-character .sol domain costs around $750 USD, while a 5+ character domain costs $20. Payments can be made using Solana’s native SOL tokens or $FIDA tokens, with the latter providing a 5% discount on purchases.
Source: docs.sns.id
Beyond simply owning the domain, users can customize their domain storage size, which allows for the storage of different types of on-chain data. Options range from 1 KB for basic uses, such as transactions, to 10 KB for more advanced uses, such as linking to an IPFS-hosted website. Storage options give users flexibility in how they use their domain and how much data they store within the Solana blockchain.
After registration is complete, users can immediately start using their .sol domain. Whether it is used for receiving tokens, linking to a decentralized website, or associating it with a public identity, SNS makes on-chain navigation simpler and more intuitive. The domain automatically links to the wallet address used during the transaction, ensuring that ownership and control remain secure.
In addition to standard registrations, the platform safeguards against scams, particularly around emojis or variation selectors that could be manipulated to deceive buyers. Users can confidently navigate the platform knowing that suspect domains will be flagged.
Overall, SNS aims to simplify blockchain interactions and offer the foundation for a more personalized and accessible Web3 experience. By registering a .sol domain, users have a gateway into decentralized applications (dApps) and interactions, creating a more humanized and secure experience on the blockchain.
Trading
The Solana Name Service (SNS) also facilitates an active and efficient trading ecosystem for .sol domains, enabling users to buy, sell, and exchange domains on secondary markets. Trading domains is a core feature of SNS, allowing users to leverage the increasing value of unique or premium domain names in a decentralized, transparent manner.
Once users own a .sol domain, they can list it for sale on sns.id or on popular Solana NFT marketplaces such as Magic Eden, Solanart, and Tensor. Before listing, users must “wrap” their domain into an NFT, transforming it into a tradable asset. This wrapping process ensures the domain can be securely traded on NFT platforms while retaining all its functionalities, such as linking to a wallet address or resolving to a website.
Trading on SNS follows a maker-taker fee model, similar to other decentralized exchanges (DEXs). In this model, users who provide liquidity to the market, known as “makers,” are charged lower fees or sometimes even receive rebates. In contrast, “takers,” who reduce liquidity by purchasing or accepting offers, pay a higher fee. The specific fee structure is determined by the amount of $FIDA tokens held by the user, offering fee reductions for those who hold more $FIDA.
Source: docs.sns.id
There are several methods of trading domains on SNS. The most common is fixed-price reselling, where sellers list their domain at a predetermined price. Buyers can browse these listings and purchase domains directly, with ownership transferring automatically to the buyer’s wallet upon transaction completion. Alternatively, users can engage in unsolicited offers, where they make a bid on a domain even if it is not officially listed for sale. This allows for passive trading opportunities, as domain owners may choose to accept offers at any time.
Another innovative feature is category offers, where buyers can place bids on entire categories of domains, such as all 3-character .sol names. Sellers who own domains within these categories can sell their domains instantly at the offered price, creating a fluid and dynamic marketplace.
Peer-to-peer (P2P) trading is also available for more customized transactions. In this model, users can directly negotiate trades with others, exchanging domains and adding SOL tokens. P2P trades are secured through escrow accounts, ensuring that both parties complete the transaction fairly.
Through its robust trading mechanisms, SNS provides liquidity, value, and accessibility to decentralized domain ownership. It allows users to fully participate in the emerging economy of Web3 identities fully, further enhancing the utility of the Solana blockchain.
Solana Name Service Use Cases
The Solana Name Service (SNS) provides many practical applications in the rapidly growing Web3 ecosystem. By linking human-readable domain names to blockchain addresses and other on-chain data, SNS makes interactions on Solana more user-friendly. Here are three key use cases of SNS:
- Simplified Crypto Payments: Instead of using complex, lengthy wallet addresses, users can send and receive Solana (SOL) and other Solana-based tokens by referencing an easy-to-remember .sol domain. This reduces the risk of errors and simplifies transferring assets between wallets.
- Web3 Identity and Branding: SNS domains serve as on-chain identities for individuals, projects, and businesses. By using a .sol domain, users can create a recognizable and personalized Web3 presence, which is particularly useful for branding, online interactions, and building trust in decentralized environments.
- Decentralized Websites and Hosting: Users can link their .sol domains to decentralized websites hosted on platforms like IPFS or Arweave. This allows the creation of censorship-resistant websites that can be accessed through browsers like Brave or other compatible services, giving users control over their online content in a decentralized manner.
Through these use cases, SNS helps bridge the gap between traditional Web2 practices and the decentralized, permissionless nature of Web3, enhancing both user experience and blockchain accessibility on Solana.
Solana Name Service Main Features
The Solana Name Service (SNS) provides a range of tools and capabilities that enhance the user and developer experience on the Solana blockchain. Here are its main features:
SNS SDK
The SNS Software Development Kit (SDK) provides a set of tools to help developers interact with and integrate SNS domains into decentralized applications (dApps). With support for various programming languages such as JavaScript, Rust, Python, and more, the SDK simplifies the process of registering and resolving domains. Developers can leverage the SDK to connect users with human-readable domain names, interact with records, and integrate SNS features seamlessly into their dApps. The extensive documentation also ensures that developers, regardless of their preferred programming language, can effectively integrate SNS functionalities into their projects.
SNS Improvement Protocol
The SNS Improvement Protocol (SNS-IP) is a collaborative platform for developers and the community to propose, discuss, and track new features or improvements to the SNS. By submitting proposals, developers can contribute to the protocol’s ongoing evolution. Each proposal goes through several stages, from drafting to community review and eventually implementation or rejection. This open-source approach ensures that the SNS continues to evolve based on the needs of its users, with a focus on transparency and community-driven development.
Cross-Chain Domain (Experimental)
The Cross-Chain Domain feature allows users to bridge their .sol domains to other blockchain networks like Injective, BNB, and Base via the Wormhole protocol. This innovative feature enhances interoperability by allowing users to perform cross-chain transactions using their .sol domain, simplifying the user experience. Whether registering a domain directly on another chain or bridging an existing one from Solana, users can seamlessly manage their domain names across multiple blockchains, fostering greater interconnectedness and cross-chain utility.
Source: docs.sns.id
What is the FIDA Coin?
FIDA is the native utility token of the Solana Name Service ecosystem. Its maximum supply is capped at 1 billion units, of which 138.17 million are already in circulation (September 2024).
The FIDA coin is crucial in the Solana Name Service (SNS) ecosystem. Launched with a maximum supply of 1 billion tokens in December 2020, FIDA’s distribution has been carefully managed to ensure long-term sustainability and growth. With 95.4% of the total supply locked for up to four years, FIDA ensures there are no large net sellers in its early stages. Only a small percentage was allocated to liquidity providers and Initial Exchange Offerings (IEOs) to maintain market stability.
One of FIDA’s key utilities is its ability to provide fee incentives for holders. It offers reduced trading fees on the SNS platform. Users can also enjoy a 5% discount when registering domain names, making it a valuable token for those actively participating in the Solana Name Service ecosystem.
Additionally, FIDA tokens are regularly burned, which reduces the overall supply over time. The burning mechanism uses stablecoins to buy and burn FIDA in on-chain markets, further supporting its value.
Source: bonfida.org
FIDA will play an important role in governance as SNS plans to implement decentralized decision-making through quadratic voting. This shift in governance will empower FIDA holders to participate more effectively in the future direction of the SNS ecosystem, combining FIDA’s utility with broader community governance initiatives. By September 2024, FIDA has proven its value as a versatile token within the growing SNS ecosystem.
Is FIDA a Good Investment?
FIDA has strong potential due to its integral role in the Solana Name Service ecosystem, offering unique utilities like reduced trading fees, discounts on domain registrations, and participation in future governance. The token burn mechanism also reduces its supply, which could increase its value over time. However, one potential drawback is its high token lock-up rate, with 95.4% of tokens initially locked, which may affect liquidity and market dynamics. Additionally, its reliance on Solana’s ecosystem poses risks if the network faces challenges or competition.
How to Own FIDA?
To own FIDA, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy FIDA.
News on Solana Name Service
This news was released in July 2024, marking a major milestone for Solana Name Service (SNS) as it officially rebranded from Bonfida. The team reaffirmed their commitment to being the best blockchain naming service. SNS also celebrated the open-sourcing of its smart contracts, enhancing transparency and accessibility for developers. Additionally, a global navigation improvement was launched on sns.id, making the mobile experience more seamless. Lastly, SNS .sol domains were integrated into the GoDID marketplace, further expanding the reach of the Solana ecosystem.
Useful References
For the latest updates about Solana Name Service, you can visit:
Take Action on FIDA
Check out FIDA price today, and start trading your favorite currency pairs.
Related articles
What Are Altcoins?
What Is Ethereum 2.0? Understanding The Merge