So, how does it actually work?

Using the ENScriptions protocol, it is possible to create a subname registrar with two Ethereum transactions: one inscribes the offering data on Ethereum, and the second sets the resolver of the parent name to the ENScriptions resolver.

ENScriptions is a new protocol for registering and trading ENS names using inscriptions on Layer 1 Ethereum.

Users can register subnames, such as jane.0x0.eth, using two transactions: a commitment and a registration transaction. Two transactions are necessary to avoid front-running. Commitment transactions allow for up to 10 names; therefore, to register 10 names, it is possible to use a minimum of 11 transactions.

After a name has been registered, it will immediately work as a real ENS name! Names are resolved using CCIP-Read and a gateway server that includes an indexer. Indexing technology is central to the way inscriptions work.