ENS records $324 million in trading volume in 30 days
As the metaverse heats up, crypto enthusiasts seek out ways to simplify the complex ways of the blockchain, and web3 wallet names are becoming a hit. Traditionally, crypto wallet addresses consist of a long, unintelligible line of numbers and letters. However, with services like ENS and Unstoppable Domains, users get to name their wallets as anything they like.
To send a cryptocurrency payment to someone, you need their public wallet address (which you also have for yourself). Making sure the payment is sent to the right person, you need to be very careful not to miss a single part of this very complicated string. On top of that, a different public address is required for every digital currency, which makes it even more difficult to handle, especially for beginners in the space.
Luckily, this problem already has a solution – and it comes in the form of simplified human-readable usernames and domain names to replace the overly long and complicated hexadecimal strings. These web3 wallet names are customizable, allowing users to choose what to call their wallets. Additionally, web3 wallet names allow companies and projects to have personalized crypto addresses for their enterprises.
The pioneers in this endeavor include Ethereum Name Service, Unstoppable Domains, and Decentraland, and they’re already making strides. Even if we just take a look at ENS, the naming service registered more than $324 million in monthly trading volume.
As virtual worlds and the metaverse are taking center stage in the crypto space, simplified web3 wallet names are gaining traction. Let’s take a look at several web3 wallet name providers and their products.
Ethereum Name Service (ENS)
Ethereum Name Service, or ENS, is a name and lookup service created on the Ethereum blockchain that allows users to translate their machine-readable hexadecimal crypto addresses into simplified human-readable addresses, or web3 wallet names.
In other words, it is a naming platform for crypto addresses and decentralized domain names which creates Web3 usernames that are interoperable and portable across different dApps and blockchains.
This universal username aims to replace nonsensical lines of hexadecimal characters like “0xDB25EF3F5C8A186998778A2AFA83795FBA2D6957”, allowing a user to assign a single DNS domain, like “Frederique.eth” to their wallet. Importantly, attaching an ENS web3 wallet name to your address does not change the hexadecimal string. This means that users can still receive all kinds of digital assets, and perform transactions. They just have an easier way to share and interact with their wallet.
Web3 wallet names and usernames in this form are growing massively, with the 30-day total trading volume of ENS NFTs surpassing $324 million.
Similar to ENS, Unstoppable Domains is a newcomer to the space. This platform is also building blockchain-based domain names. These allow users to replace the overly complicated machine-readable cryptocurrency addresses. Instead, they can get human-readable usernames that can be used across apps and websites.
As a result, they support simplified crypto payments, hosting decentralized websites, and more. Unstoppable Domains is selling domains ending in .crypto, .zil, .coin, .x, .bitcoin, .888, .nft, .dao, and .blockchain.
Users can choose among the domains/usernames available for purchase as NFTs, which proves their uniqueness and authenticity. Importantly, unlike traditional domain name services, users own these NFT domains. They do not need to rent, but simply purchase a domain with a one-time registration fee.
Decentraland Names are tradable ERC-721 tokens and unique human-readable names that allow users to trade tokens between easily recognized addresses. Users can purchase and sell Decentraland Names in MANA, Decentraland’s native currency.
The usernames come in a standard Decentraland domain .dcl.eth. However, as Decentraland Names fully integrate with ENS, owners can purchase subdomains directly on the ENS official website. In addition, players can use these unique domain names to log intro the Decentraland virtual world.
Web3 wallet names will become the usernames of the metaverse
As the case of Decentraland Names shows, decentralized usernames have a bright future in the metaverse, beyond user wallets alone. Considering their wide usability, it makes a lot of sense for them to cover someone’s complete presence in the metaverse.
For example, Unstoppable Domains and its Web3 technology also remove the need for users to remember which email address and password they use on which website or dApp. They can now simply log in with their web3 wallet name through the Unstoppable Domains login integration.
High demand for avatars
Decentralized usernames aren’t the only thing that’s in high demand these days. As the metaverse grows richer with virtual worlds and users, the hype is also getting stronger for NFT avatars. These represent these users in this digital space. The ownership over digital avatars and their fashionable designs especially draws in a crowd.
To meet this demand and seize the opportunity for stellar revenue, there are already several companies providing users with the avatars they want. They include Ready Player Me, CryptoAvatars, and Genies – just to name a few.
Simplicity is key
The drive to simplify the crypto and metaverse for users has led to the creation of decentralized usernames. It also pushed forward the hype for NFT avatars. This, as it happens, has opened up a whole new world of opportunity in the crypto industry.
This potential hasn’t gone unnoticed. ENS’ monthly trading volume is just one data point to prove the rise of web3 wallet names. DappaRadar will continue monitoring the web3 space, as naming services continue to gain relevance. If you want to learn the latest news from the meatverse first, follow DappRadar on Twitter and Discord, and join DappRadar PRO.