How does the ENS work?

Could you please explain in detail how the ENS functions? I'm curious to know about the underlying technology that enables this naming system within the Ethereum blockchain. Could you also elaborate on how it differs from traditional DNS systems and what are the key benefits of using ENS? Additionally, I'm interested in understanding the process of acquiring and managing an ENS name, as well as the potential challenges or limitations associated with it. Thank you for your assistance in clarifying these points.