Coinbase, a leading cryptocurrency exchange service, has partnered with Ethereum Name Service (ENS), a decentralized identity infrastructure, to provide users with free web3 usernames created by Coinbase administrators instead of traditional addresses.
They announced that this will allow users to execute transactions with cryptocurrencies using their nicknames and not outdated wallet adresses.
To ease the transfer system for cryptocurrencies and non-host tokens (NFT), Coinbase announced it would work with its ENS to allow users to verify their names. This has become possible with the help of a new browser extension.
The new system
According to Coinbase, in the near future, anyone can send a request for a w3 username (‘name.cb.id’) and receive a unique and secure set of characters. This will allow operating cryptocurrency stocks fast and easy with no need to use the outdated 42-character address method. This will be more like a direct interaction with a person using their w3 nickname.
On the Coinbase FAQ page, it is explained how the username decentralized identity system will operate. The main way it will work is with the help of a “subdomain” associated with Coinbase’s main domain name system (DNS). All user nicknames will be protected by the ENS protocol. The users will be allowed to customize the address of their wallets.
What does the new username consist of?
The ENS username is a human-readable name with a “.eth” added at the end (username.eth). The cryptocurrency trading service says that to achieve an open finance operating structure, web3 must be usable by people “at all levels” and must enable usage of human-like usernames.
According to the exchange, unlike web2, web3 is decentralized. Web2’s shortcomings are highly visible if data is leaked or access is lost. Web3 could get rid of such usability flaws.
Coinbase said it will go on expanding its identity offerings. People can validate their username by going to the Community web page in the Coinbase Wallet Extensions, choosing the ” Free Request” section and following the instructions. New users must first get a personal wallet.
According to Coinbase, once a username is created, people will be able to fully operate their profile with the help of the w3 nickname.