Domain name business is booming, can BNS take over ENS?

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Under the bear market, Web 3 domain name trading has become a hot business, especially ENS.

Various three-digit, four-digit and Emoji ENS domain names are highly sought after, and transaction prices continue to rise; many giant whales create and scan ENS domain names in batches, and attach website links to their personal domain names to start Domain name sales business. Data shows that 378,442 ENS domain names were newly registered in July, surpassing the previous record (365,652) set in May and hitting a record high; so far, the total number of ENS domain names created has exceeded 2 million.

This wave has also spread to other public chain ecosystems other than Ethereum, and each company has gradually launched its own domain name service. Recently, Odaily Planet Daily noticed a domain name agreement called Binance Name Service (BNS), which made up for the gap in the BNB Chain ecological market.

Like ENS, BNS also supports wallet address mapping, enhanced domain name ownership, and reverse resolution services. Users do not need to remember long and disordered addresses, and can directly and easily transfer transactions from one domain name to another. More importantly, considering the loopholes in the ENS design, BNS prohibits zero-width hyphens at the contract level to ensure the uniqueness and authenticity of domain names.

In the future, BNS will build a Web3 social platform (similar to quora) based on the BNS domain name. Users can set and display personal information and add Avatar avatars in the domain name they hold. In addition, BNS will also launch a Web3 user information distribution center based on domain name identity. Any builder can define the behavior characteristics of users; after users are connected with each other, they can share the behavior information of friends on the chain; The above information is extracted and converted into targeted and timely intelligent messages, which are converted into social networks that users can exchange and interact with.

As a rising star in the domain name field, can BNS integrate the ecological advantages of BNB Chain to overtake ENS and grow into the next leader in the domain name field?

1. Domain names are social passports in the Web3 era

Users who have been on Web3 all year round must have such an experience. When you want to transfer money to a friend on the chain, you first need to obtain the address on the chain, which is usually a long string of random and memoryless strings. Once negligence, omission or mistyping of a letter, it may lead to transfer errors, and the above steps must be repeated.

In order to facilitate user transactions on the chain, the Web3 domain name came into being, which converts disordered addresses on the chain into words or symbols with memory points. Taking the ENS (Ethereum Name Service) of the decentralized domain name protocol as an example, the common Ethereum address is a combination of numbers and letters starting with 0x. After using the ENS domain name service, it can be converted to xx.eth (xx can be your name or other symbols ).

In the past year, domain name services have successfully detonated Web3, especially as the market entered a bear market, the domain name business has become more and more hot.

In the case of ENS, registrations have been climbing over the past few months. The data shows that up to now, the total number of ENS domain name registrations has reached 2.073 million, of which 70% are newly added after this year (1.453 million); the number of independently held addresses has reached 532,000, accounting for nearly 60% after the year; In July, the number of ENS domain names registered in a single month exceeded 370,000, setting a record high.

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(ENS registration data)

Why does the market have a soft spot for domain name services? What is the real role of domain name services in the Web3 era?

The ease of use mentioned above is one of the core values ​​of domain names, but more importantly, domain names such as ENS and BNS make Web3 more user-friendly and personalized, lowering the threshold for understanding.

“The domain name is not only convenient for transferring money for ordinary wallet addresses, but more importantly, it can be used as a label for the user’s identity on the chain. Personalized settings will lower the understanding threshold for new users. We have always made products from the user’s point of view. Let’s go.” Alger, head of BNS business, explained that if Alipay users can only perform transfer operations through a long string of Alipay IDs, the probability of transaction errors will be doubled, and the corresponding convenience will be greatly reduced.

Furthermore, Web3 domain names have certain economic value. Like traditional Web2 domain names, Web3 domain names such as ENS and BNS are available for trading. Users can collect rare domain names and profit from the transaction. A good domain name is even more valuable than some blue-chip NFTs.

For example, on July 4th, the “000.eth” ENS domain name was sold at a price of 300 ETH, setting the second-highest transaction price of an ENS domain name in history; the ENS domain name with the highest transaction value in history was “paradigm.eth”. The transaction price was 420 ETH, and the Paradigm corresponding to this domain name is a well-known crypto investment fund.

In addition, recently, various three-digit, four-digit and Emoji ENS domain names have been highly sought after, and the transaction price has continued to rise; many giant whales have created and scanned ENS domain names in batches, and attached them to their personal domain names. Link to the website and start a domain name sales business.

Second, a Web3 domain name is a symbol of identity and status, with brand value. ENS and BNS domain names can be regarded as a business card in the Web3 world. They can represent the identity of individuals, companies and even countries. They can also be displayed in combination with numbers, letters, emoji and symbols, conveying individuality and brand value. More importantly, users with the same dotted domain name have a mentality of belonging, and various domain name clubs have appeared recently.

From a practical application point of view, Web3 domain names are becoming the standard for traditional institutions and large enterprises to enter Web3. Last year, Budweiser bought beer.eth with 30 ETH; luxury brand Gucci started accepting cryptocurrency payments in some stores in the United States after acquiring gucci.eth with 12 ETH in March this year; jewelry brand Tiffany paid 29 ETH (approximately 29 ETH). $50,000) for the tiffany.eth domain name.

Finally, for project organizers and investment institutions, domain names are a high-quality track where business models are verified. From the data, in the past year, the total revenue of ENS reached nearly 54 million US dollars, of which 10% to 20% came from the renewal fee, and the rest was the registration fee, which means that the user stickiness is high, and the willingness to pay and renew is strong.

From the perspective of track development prospects, the annual sales of traditional We2 domain names will reach the level of 10 billion US dollars, and the sales of domain names in the US market alone will reach 6.7 billion US dollars in 2022; while Web3 domain names are currently small in size – the most popular ENS sales The amount is less than hundreds of millions. The entire Web3 domain name industry is in the ascendant, and there is still a lot of room for development with a high ceiling.

In general, in the Web2 era, traditional domain names such as DNS are used as a channel to connect individuals and companies/enterprises; in the Web3 era, encrypted native domain names such as ENS and BNS have become a social passport for Web3, and become a personal, enterprise, and even country. status symbol. With the advancement of Web3, some domain name projects may develop into business cards for the entire industry, just like “.com”.

2. Building Web3 Social Based on BNS Domain Name

With the popularity of the domain name business, this wave has also spread to other public chain ecosystems other than Ethereum, including Solana, Avalanche, Polkadot, Tezos, Flow, Evmos, etc., which have also gradually launched their own domain name services this year. . However, whether it is the transaction volume or the number of registered users, there is a lot of gap compared to ENS. A very important reason is that the ecological development behind these domain names is slow, and the user activity is far lower than that of Ethereum. Also not strong.

In view of this, the BNS development team project chose to build a domain name service based on BNB Chain.

“For entrepreneurs, Ethereum is indeed a good innovation paradise. After all, it has a richer ecology and a more complete infrastructure. But as a builder, the BNB Chain ecology allows me to see opportunities, and we are willing to develop an area Prairie. The advantages of BNB Chain are also obvious. In the past, there was a steady stream of diversion from Binance officials, and then there was the influence of the law of time machine. The infrastructure on the Ethereum chain will be there in the future.” Alger told Odaily Planet Daily.

Judging from various data, BNB Chain has indeed gradually surpassed Ethereum: BNB Chain handles 2.8 million transactions per day, reaching a peak of 3.7265 million on March 16 this year, while ETH handles 1.3 million transactions per day; BNB Chain chain The number of active addresses on BNB Chain continues to hit new highs. Last week, the number of unique addresses on BNB Chain increased by 1.5719 million, with a total of 143 million, a growth rate of 2.7%, while the growth rate of ETH last week was only 0.87%; In terms of assets, the total locked value of BNB Chain is US$5.5 billion, making it the second largest encrypted ecosystem after Ethereum.

On the other hand, BNB Chain’s domain name service is currently absent. The sample survey data shows that among the 200,000 sample addresses, 99.5% of users do not have domain names, and the entry of BNS makes up for the last shortcoming of the market. As the largest ecosystem with the most active users outside of Ethereum, BNB Chain is becoming a new battlefield for domain name competition, ushering in a new wave.

“BNS can link each Web3 user, link various mainstream platform scenarios, help each user link his identity and assets, and help BNB Chain link more customers.” In the official website, BNS introduced. What are the differentiating advantages of BNS, the first entrant?

Like ENS, BNS also supports wallet address mapping, enhanced domain name ownership and reverse resolution services. Users do not need to remember long and disordered BNB Chain addresses, and can directly and conveniently transfer transactions from one domain name to another.

More importantly, considering the loopholes in the ENS design, BNS prohibits “zero-width hyphens” at the contract level to ensure the uniqueness and authenticity of domain names.

Zero-width hyphen (zero-widthjoiner ZWJ for short), can be understood as a space. Assuming that when a user registers the “vitalik” ENS domain name, he only needs to add a few zero-width hyphens before and after the name, and then he can get a domain name that looks the same as Butterfly’s name to the naked eye. The existence of this vulnerability will directly lead to damage to the value of domain names. Some ordinary users may even buy “fake” domain names because of this, which greatly affects secondary market transactions. BNS directly eliminates this problem.

On this basis, BNS will connect with BNB Chain ecological projects, including wallets, browsers, cross-chain bridges, exchanges, etc., and support the direct use of domain name services through these platforms. Officials revealed that the three wallets of the BNB Chain ecosystem (MetaMask, Bitkeep, Tokenpocket Trust Wallet), eight DEXs and two NFT platforms have been connected to the BNB Chain ecosystem. The specific list will be announced at a scheduled date.

In addition, BNS will also build a Web3 social platform based on the BNS domain name. Users can set and display personal information in the domain name they hold, such as ERC20 address, email, URL link, Twitter, Github, Reddit, Telegram, etc. information; users You can also set the ERC-721 and ERC-1155 standard NFTs held by your own address as Avatar avatars and display them in various DAPP applications on the chain. As follows:

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“In the future, your BNS domain name will be your decentralized mailbox, and your BNS domain name can also be your decentralized website or personal homepage,” Alger said.

In addition, BNS will also launch a Web3 user information distribution center based on domain name identity. Any builder can define the behavior characteristics of users; after users are connected with each other, they can share the behavior information of friends on the chain; The above information is extracted and converted into targeted and timely intelligent messages, which are converted into social networks that users can exchange and interact with.

For example, assuming that the user is a MOD (administrator) of a project’s Discord community, the project party can evaluate their achievements, and the relevant tags will be synchronized to the BNS domain name. When they go to other project communities to participate in MOD recruitment, these tags will be displayed. Its past contributions can be verified to help it gain a competitive advantage. This function can also help some emerging projects determine the NFT whitelist and airdrop list to obtain high-quality user resources.

“From the perspective of To B, BNS has a lower access cost. For the access scene party, only one person can complete the access to BNS in about an hour. This also makes BNS ecologically leveraged in the future. It is possible to move the market. From the perspective of To C, BNS will continue to surprise the community, please wait and see.” Alger told Odaily Planet Daily.

Three, down-to-earth, looking up at the stars

According to the official plan, the domain name service will be officially launched in the fourth quarter of this year, and the domain name trading market will be opened. A few days ago, the official announcement on Twitter said that users who hold a group of (T1 T2 T3) Genesis NFTs will get a whitelist of BNS domain names.

In the initial stage of the agreement, the minimum unit price of BNS registration is 5 US dollars a year, which is also the most important source of the project; BNS also builds an income distribution agreement based on Share to earn, and users can also earn profits by recommending friends to register domain names. After a certain order of magnitude of users, social products will be launched, and domain name registration will be completely free. In the future, all BNS will be free and open, and it will truly become a Web3 traffic portal. The first wallet address for every new user to come to the encryption world is a personalized domain name, which will lower the understanding threshold and attract more people to the encryption field.

In addition, the team will issue BNS tokens after the project matures, and domain name registration will also support BNS payment. “For Web3 users, we will use the protocol revenue to buy back BNS tokens on a quarterly basis. At present, there is only an expectation. Whether the currency is issued or not depends entirely on the progress of the project. When the project is still immature, we do not Will consider launching a token,” explained Alger.

Nowadays, more and more people believe that in the Web3 world, such a decentralized domain name and account system must be needed to carry applications, websites and user identities. However, these projects are still in the very early stage of exploration. Integration, user experience, access to the Web2 world, there are many, many room for improvement.

Whether the domain name systems such as ENS and BNS can truly undertake Web3’s only de-neutralized domain name and account system depends on the continuous efforts in the ecological aspect in the future. To break the barriers of public chains and become a domain name service provider covering the entire Web3 public chain, there is a long way to go.

“We have a strong competitor (ENS), and people often ask us why we don’t give up and choose a new track. I think if there is only one company doing it in a field, it means that it is either too niche or the ceiling is too low. .Competitors will make us stronger, horse racing will make the head products better and better, and also make the user experience better and better, we believe that the products that are really favored by users have experienced time and environment. It’s a double test, so BNS will keep its head down and look up to the sky.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/domain-name-business-is-booming-can-bns-take-over-ens/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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