Coinbase

One of the major cryptocurrency trading platforms, Coinbase, has announced that it is collaborating with Ethereum Name Service (ENS), a decentralized identity infrastructure provider, to provide users with free Coinbase-managed web3 usernames, which may be used in place of traditional addresses for sending and receiving cryptocurrencies.

According to the release, the exchange worked with ENS to allow customers to claim “name.cb.id” usernames through the Coinbase wallet browser extension, making it easier and less intimidating to send and receive cryptocurrencies and NFTs. Furthermore, according to NFTGo data, ENS registrations have risen by 200% since July, and total NFT sales have grown by 80% in the past three months.

On its blog, Coinbase published a post titled “What Web3 Identity Needs.”Simplified wallet addresses have grown in popularity over the last few months of the bear market. In a post made by Coinbase, the company stated,

“With this feature, anyone can now claim a free “name.cb.id” web3 username to send and receive crypto (instead of using 42-character addresses), engage with others, and to use as the foundation of their web3 identity.”

Concerns about identity in Web3

Anyone can now use this feature to claim a free “name.cb.id” web3 username to send and receive crypto, communicate with others, and use their web3 identity. Customers can obtain “name.cb.id” usernames using the Coinbase Wallet browser extension.

Although this is an impressive achievement, your username is only one aspect of your digital identity. However, several identity-related gaps must be addressed before billions of people can use web3.

Web3 has early promise, but it can sometimes be difficult to use and lacks practical means of communicating or evaluating trust and validity. Coinbase believes they must combine web2’s convenience with web3’s privacy, security, and control to close these gaps.

According to Coinbase, they must make it simple to create and manage human-readable, portable, and interoperable usernames that sit above rich, adjustable general identities that can range from completely private to completely public. Furthermore, it states that users must have multiple identities for different situations, such as one for work and another for gaming.

Coinbase Will Provide You with an ENS Username

Those who have used cryptocurrency probably know the difficulty of sending tokens or NFTs to addresses with 42 characters. Coinbase’s ENS collaboration will make this process easier. Coinbase ensures that people from all walks of life have access to web3 to create an open financial system for the entire world.

To make web3 user-friendly for everyone, however, a standard for human-readable usernames must be encouraged. Ownership of the ENS name can be transferred to a Coinbase wallet by users who own an Eth domain. As the primary login for that wallet, they can use either a Coinbase username or an existing ENS username.

On the other hand, a cb.id username is not linked to Ethereum for sending and receiving cryptocurrency on different networks.

Web3 Identity Layer

Creating a useful web3 identity layer will necessitate awareness and sensitivity from large teams that can innovate and improve efficiency. It usually begins with creating and improving locally before expanding globally. According to Coinbase, they must pursue a long-term strategy centered on open source, open standards, and close collaboration with the larger web3 ecosystem.

Coinbase has started the journey by partnering with companies such as ENS and Verite. It will provide everyone with a one-of-a-kind web3 identification (cb.id). Coinbase will keep developing identity services. As a result, we can assume that an exciting new chapter for Coinbase and the larger web3 community has begun.

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