From .com to .eth: Why More Businesses Are Embracing ENS Domains

Do you know that the .eth namespace has grown rapidly, with over 1.5 million registrations since 2017, reflecting businesses seeking a foothold in the burgeoning Web3 space? This growth is further fueled by the projected 5.18% CAGR for the global domain market from 2021 to 2031.¹

The rise of Web3 with crypto and blockchain led to new domain extensions like .eth on the Ethereum blockchain, spearheaded by the Ethereum Name Service (ENS). This trend is further emphasized by GoDaddy's recent partnership with ENS, allowing users to register .eth domains directly on their platform. This signifies the merging of traditional and decentralized domains. Let's explore what makes ENS domains unique and why businesses should embrace .eth for good.

Understanding ETH Domains? 

These domains are built on the Ethereum Blockchain. They leverage the security and transparency of the Ethereum blockchain. Unlike traditional domains, you own and control your .eth domain entirely, free from any central authority.

Anyone can register a .eth domain, fostering a diverse and inclusive internet landscape. The Ethereum Name Service (ENS) oversees the secure and decentralized management of .eth domains.

The Rise of .eth Domains: Numbers Tell the Story ²

The data clearly shows ENS's impressive growth and widespread adoption. From rapid registration increases and substantial financial holdings to a thriving NFT market, ENS is establishing itself as a key player in the decentralized web landscape.

Accounts linked to analyzed ENS domains hold significant crypto assets, including $291 million in ETH alone. Estimated annualized revenue from ENS domain fees surpasses $2.3 million, with potential for further growth as shorter, premium domains become more popular. Year-to-date sales of ENS domain NFTs have skyrocketed by over 12,800%, highlighting the booming NFT market. 

What does owning the .eth domain mean for Business?

Owning a .eth domain offers promotional and technical (integrating payments and social features) advantages for businesses entering the Web3 space. In the real world, these domains are already being used with NFTs, DAOs, and crypto-payment systems. As Web3 gains mainstream adoption, forward-thinking businesses are securing .eth domains to prepare for the future of online presence.

Benefits of Embracing .eth Domains

The recent partnership between GoDaddy and ENS signifies a trend towards combining traditional and decentralized domain solutions. This collaboration might pave the way for similar partnerships between other domain registrars and blockchain platforms like Binance, Tezos, and Arb. Owning a .eth domain alongside your .com can benefit businesses and brands in two key ways:

1. Securing an identity in the growing Ethereum space: This allows you to establish your brand early on in this evolving ecosystem.
2. Enabling deeper integrations with blockchain technologies: .eth domains open the door for features like easier crypto payments and integration with decentralized applications (dApps).

Top Reasons to Invest in a .eth Domain

Owning a .eth domain, a special type of domain built on the Ethereum blockchain, offers a variety of benefits and opportunities:

• Censorship Resistance: The decentralized nature of the Ethereum Name Service (ENS) protects .eth domains from censorship attempts.
• Enhanced Readability: Compared to complex Ethereum addresses, .eth domains are easier to remember and share.
• Sending and Receiving Crypto: You can use your .eth domain to directly send and receive various cryptocurrencies, simplifying transactions.
• Open Access: Anyone can purchase a .eth domain, regardless of location or blockchain technology experience.
• Unparalleled Security: Stored on the Ethereum blockchain, .eth domains benefit from the network's inherent security and immutability.
• Investment Potential: .eth domains can be bought, sold, and traded like other digital assets, potentially offering investment value.
• Subdomain Creation: You can create subdomains under your main .eth domain for various projects, improving organization and navigation.
• User-Friendly Management: The ENS system simplifies managing your .eth domain, allowing easy renewals and updates.
• Smart Contract Aliases: .eth domains can create memorable aliases for smart contracts, enhancing user interaction.
• Easy Wallet Management: Assign unique names to your multiple crypto wallets using .eth domains for better organization and sharing.
• Building Trust: Owning a .eth domain showcases your commitment to your project and familiarity with blockchain technology, potentially boosting trust.
• Enhanced Security: Compared to traditional domains, .eth domains offer superior security due to their blockchain storage and cryptographic backing.
• Branding Opportunity: A unique and memorable .eth domain serves as a powerful tool for branding your projects or businesses.
• Secure Email Communication: .eth domains enable secure email communication directly to other .eth wallet addresses through Mainchain.

Getting Your Own .eth Domain: A Mini Guide

The Ethereum Name Service (ENS) is transforming online identity management as the world embraces decentralization and blockchain technology. With a multitude of uses and a user-friendly interface, ENS provides people and enterprises with their own digital identities within the Ethereum ecosystem. It is worthwhile to note the underlying process involves smart contracts, fees, and resolvers. Here's how to grab your own personalized .eth domain:

1. Gear Up:

Get a non-custodial Ethereum wallet that works with ENS and has enough ETH to cover transaction fees. This wallet will own your domain.

2. Connect Your Wallet:

Head to https://ens.domains/ and click "Connect" to link your chosen wallet to the platform. A safe connection process will follow.

3. Find Your Perfect Name:

Use the search bar to check if your desired domain name is available. If not, you'll see details about who owns it and when it expires. Once available, choose the registration period in years.

4. Secure Your Domain:

Select your desired domain and review the estimated fees based on the name length. Start the registration, sign the transaction, and then wait for confirmation to ensure exclusivity.

5. Complete & Configure:

After confirmation, finalize your registration to secure your domain. Finally, set up a resolver so your ENS name can replace your wallet address in apps, making them easier to use.

Unifying Web Services: ENS as the All-in-One Solution

ENS domains are like digital multi-toolboxes. They can hold various resources, like website addresses, cryptocurrency wallet addresses, and even social media handles and avatars, all in one place. This single, user-friendly address is a gateway to your online presence.

Imagine <yourdomain>.eth as your digital resume website. But when someone tries to send you cryptocurrency using a compatible wallet app, it automatically recognizes the ETH address linked to your domain. It translates it from a complex string into your easy-to-remember domain name.

This multi-functionality of ENS essentially combines several web services into one. Traditionally, running a website requires separate services like a domain name, hosting platform, payment system, and user authentication. Individual companies often manage these services, and they can be complex to set up and maintain.

However, with ENS, many of these functionalities are either built-in or easily integrated and operate on open, decentralized networks. Using an Ethereum address as your core ENS domain simplifies things further by combining the payment gateway and domain name into one location.

Furthermore, ENS subdomains allow you to create user accounts easily by linking them to a simple address like a user <yourdomain>.eth. You can even use ENS within your platform to manage user assets as NFTs, opening doors for innovative applications.

Success Stories of Brands 

The key to successful Web2 to Web3 transitions lies in careful planning, execution, and treating the initial project as a minimum viable product (MVP). This allows for iteration and learning while managing expectations. Let's explore some successful Web2 to Web3 stories, diving deeper into their offerings and what makes them stand out.

Gucci 

Luxury fashion house Gucci embraced the potential of .eth domains by creating a limited-edition collection of NFTs. These NFTs offered exclusive digital artwork and came bundled with unique usernames for the owners. This innovative approach allowed Gucci to experiment with the metaverse and engage with a tech-savvy audience while maintaining a connection to their core business.

Budweiser

Budweiser's acquisition of the Ethereum Name Service domain suggests their commitment to crypto. Budweiser will mint the NFTs on the Ethereum network and sell them on OpenSea, covering the often high transaction fees. Budweiser has launched its collection titled "Budverse Cans: Heritage Edition." Introduced 1936 Unique NFTs, each NFT references Budweiser's history with designs inspired by classic photos, ads, and documents.

Charles & Keith 

Charles & Keith is a pioneer in adopting Web3 technologies, like .eth. They embraced cryptocurrency payments (Bitcoin & Ethereum) on their e-commerce platform, offering customers a convenient and modern payment method without disrupting their existing business operations. This also generated significant positive publicity and positioned them as forward-thinking. Their participation in Decentraland's Metaverse Fashion Week showcased their willingness to explore new frontiers. This allowed them to engage with an existing metaverse community and portrayed them as a brand at the pinnacle of technological innovation and advancement.

Conclusion 

It's wise for businesses and individuals to be proactive and secure their desired domains across various blockchain networks, especially considering the potential future growth of these platforms. Even in challenging market conditions, .eth domains continue to experience significant growth within the decentralized web. 

By strategically integrating Web3 elements without compromising their core business, brands like Gucci, Budweiser and Charles & Keith have established themselves as leaders in the retail industry and set a strong example for others to follow. With its numerous advantages, from improved readability and security to branding and investment potential, the .eth domain presents a compelling proposition for individuals and businesses. The straightforward purchase process makes it an easy entry point into blockchain technology.