The Future of Digital Ownership: How to Receive and Store Cryptocurrencies Or NFTs Via ENS Smart Contracts

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The Future of Digital Ownership: How to Store Crypto Coins Or NFTs Via ENS Smart Contracts
  • The NFT allows ENS users to store all their crypto addresses, and to receive cryptocurrency or NFTs through their ENS smart contracts.
  • Sigel.eth is mapped into machine-readable identifiers such as Ethereum addresses, other cryptocurrency addresses, content hashes, and metadata by the Ethereum Name Service.
  • OpenSea, NFT’s platform for secondary ENS transactions, reports a 7-day ENS domain volume of $1.7M.

The number of active websites worldwide is 200 million, and 172 million of them are managed by VeriSign (VRSN) in the United States.

The U.S. government, which considers the service a critical infrastructure, has repeatedly renewed a long-term, no-bid contract (ICANN) with VeriSign.

How Will VeriSign Make A Difference In The Cryptocurrency Space?

The company has not spent more than $100M on capital expenditures since it jettisoned its cryptographic hash business (“issuer of digital certificates”) to Symantec in 2011, and has grown its revenue at an astounding 18% CAGR since 1998. VeriSign’s 63% operating margins and 21% CAGR over the past 10 years are further evidence of its privilege.

As is the case with so many Web 2.0 platforms, VeriSign could be undermined by an open, interoperable, community-owned protocol that lets small business operators not only retain ownership of their domain names, but also potentially earn money from Web 3. The Ethereum Name Service (ENS) promises to deliver such a service, a distributed, open, and extensible system built on top of the Ethereum blockchain.

ENS users can use the Ethereum Name Service to map cryptocurrency addresses and receive cryptocurrency or NFTs into their ENS smart contracts using the Ethereum Name Service. Developers of decentralized websites can upload their files to IPFS (a distributed file storage network) and save the hash to their ENS name. No VeriSign needed for decentralized commerce!

The utility was a vague concept to me when I set up my .eth address last month. Sigel.eth is less about saving my name than recognizing that it could be used for a new social media presence or family business someday, and $25 per year was an excellent value considering Budweiser (OTCPK:BDWBF) is such a well-known name.

Name registration costs $5/year for 5+ character names, $160/year for 4 character names, and $640/year for 3 character names, plus the cost to mint the address as an NFT, which can be around $100 at current gas prices.

It was utterly unexpected for the developers behind ENS to turn their “multisignature” leadership into a decentralized autonomous organization (DAO) and airdrop a token to all users (now 178,000), based on their ENS names and previous ownership.

A Constitution For The DAO: Proposal For Blockchain Governance

A “Constitution” defining governance responsibilities, including how ENS funds should be allocated, was then ratified by the claimants. Can the ENS model include the distribution of some of the registration fees or resales to ENS token holders in the future? DAO director Brantley Millegan confirmed to Cointelegraph that “there is no profit sharing motive” but that the token-based system allows for “a great deal of flexibility.”

OpenSea, based on the 7-day ENS domain volume of $1.7M, supports secondary ENS transactions. My 122 ENS tokens, purchased for $25, were worth over $10k at the token price peak of $83 last week. The market expects further monetization of the tokens.

The IRS considers the ENS airdrop to be a taxable event, despite the fact that many users bought their addresses without any expectation of profit. There is a good chance that the Supreme Court will rule on airdrops this decade.

By that time, ENS’s market cap of $800M may have taken another bite out of VeriSign’s $26B monopoly.

Number of New ENS Addresses Registered Daily (Total = 449k)

Via this site.

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