Users can change their ENS names once a year and use them in any manner they choose to, as long as it complies with Coinbase’s Subdomain Terms — which have yet to be announced.
— Seán Murray | 3531.eth | OpenSean.eth (@financeguy74) August 23, 2022
ENS, or Ethereum Name Service, is a distributed and extensible naming system based on the Ethereum blockchain. The protocol allows crypto wallet addresses to have human-readable extensions — .eth.
ENS is a decentralized identity infrastructure provider, and its integration will allow Coinbase users to use a personalized and decentralized form of identification within the Web3 space. To make the ENS migration as fast as possible, Coinbase will store the new usernames off-chain for the time being. The exchange said it is planning to further decentralize by carrying them on-chain.
The scope of the ENS
The current Coinbase usernames are also built on top of ENS infrastructure and, therefore, a type of ENS. The existing usernames that belong to the Coinbase Domain Name System (CDS) have the “cb.id” extension at the end of the usernames. After the ENS change, the usernames will have a “.eth” extension at the end.
Based on Coinbase’s announcement, the ENS can be used to send, receive, and trade coins by regular and pro users. On the other hand, wallet accounts can only send and receive using their ENS.
Wallet trading will become available in the future, according to the exchange.
Germany and Japan are the only countries that don’t support ENS.
In addition, ENS only supports a handful of crypto-to-fiat exchanges. Users can exchange their crypto for dollars in the U.S. and euros in the EU and the U.K.
However, exchanging it for dollars in Europe and euros in the U.S. is impossible.
ENS reaches 2 million names
ENS started working to adopt Ethereum Layer-2 support in January 2022.
As of Aug. 18, 2 million ENS names have been created.
According to sales data, 92% of ENS sales were made via the ENS Registrar Controller, while the remaining 7.5% were sold on OpenSea.