Why Does the Ethereum Name Service (ENS) Matter?

ens domains

Ethereum Name Service (ENS) is built on the Ethereum blockchain and enables you to buy secure, private, censorship-resistant domains.eth domain names. Users can use this domain to link to crypto wallets addresses or other information stored on a Web3 infrastructures like Interplanetary File System (IPS). Over 2.7M .eth addresses have been registered thus far. 

We asked ENS expert, thecap.eth, founder of thename.space, an ENS tools platform, to explain to us a few of the features of ENS and why investors or projects might want one. 

Readable Web3 usernames

According to thecap.eth, the most commonly used feature of ENS is wallet naming. He explains it makes for an easier user experience when transferring funds and navigating Web3. Registered names are programmed to point 

ens wallet naming

to a variety of things. With wallet addresses, instead of displaying the long form, it displays readable text like nick.eth. This makes for a streamlined experience when transferring funds.  

Web3 Identification

Thecap.eth reminds us that the future is multichain. Your .eth username may eventually become your passport in the Web3 space. It will store a list of achievements like how long it’s been used, how frequently, are you donating, providing liquidity? All this data and more will be immutably attached to your eth wallet address with a .eth name as its primary. In an industry that is KYC skeptical, a .eth name may eventually be your online verification. 

Metaverse Identity

The metaverse is all around and one of the hottest topics these days. With different platforms on different chains the question of interoperability is in the forefront. Thecap says in the future your ENS name may link to your metaverse avatar. These will likely be usable in a variety of meteverses across chains. This ID could also link to other.eth IDs. The sky is the limit. 

Email Enabled Solution

Privacy has been completely lost in Web2. Email, once supposedly private, seems to be in the public domain too often. Thecap says different service providers, like Skiff, will integrate .eth names and allow users to receive encrypted communication using the private security of the blockchain. 

Sign in With Google? No Sign in with Ethereum

‘Sign-In with Ethereum’ is a new form of authentication that enables users to control their digital identity with their Ethereum account and ENS profile, according to TheCap. The days of logging in and being tracked by google and Facebook may soon be behind us. 

Decentralized Websites

Thecap said, “There are a lot of decentralized websites relying on ENS names.” While decentralized websites are yet to become fully supported, .eth names can be used to resolve websites, blogs and more on Brave.  

Banking for Crypto 

Many will soon be using one wallet and one .eth name. Thecap said that companies or gig workers that accept crypto will require dedicated .eth names to support some of their accounting. Easy payments, paying taxes, payroll, and DAO contributions can all be sent using .eth names and thus be more easily tracked and accounted for.

Most of the use cases are oriented towards the general public, individuals, angel investors, and early adopters. Once crypto and blockchain technology becomes more standardized, easier to use, and easier to implement; companies will inevitably look for ways to improve their on-chain systems and processes. 

Nike Spent 60 ETH for Nike.eth

Thecap pointed out that at this point, ENS use cases are mostly speculation. But there must be a good reason why Amazon spent 33 ETH for Amazon.eth, 60 ETH for Samsung.eth, 60 ETH for Nike.eth, and so on. 

The first industry that will be the leader in adopting blockchain technology is the gaming and metaverse industry according to Thecap. These two have already used ENS as an in-game naming system, using ENS to give players custom names, and provide the ability to name in-game assets such as land, cars, and any other tradable assets.

Wallets and Exchanges will use ENS to give a custom subname to all of their users. This case has already been proven by Coinbase’s cb.id subnames that are enabled using ENS protocol. 

Thecap gave an example. Amazon could issue subnames to manage all of their stores like la.amazon.eth, miami.amazon.eth, london.amazon.eth. This could be used for logistics, operation, supply chain, filing, and more. 

So, have you registered your .eth name yet? If not, it might be time to look into registering while name choices and options are still available. Names that are already registered can often be found on Opensea at a premium if you have one in mind for your brand. There is another domain option, unstoppable domains, and in a future article we’ll review the pros and cons of each.

Opinions expressed here are opinions of the Author. Influencive does not endorse or review brands mentioned; does not and cannot investigate relationships with brands, products, and people mentioned and is up to the Author to disclose. Accounts and articles may be professional fee-based.

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