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A look at Unstoppable Domains, the newest crypto unicorn and how it compares to ENS

A look at Unstoppable Domains, the newest crypto unicorn and how it compares to ENS

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By CNBCTV18.com  IST (Published)

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So far, Unstoppable Domains has registered 2.5 million domains and forged 300 partnerships with leading web3 companies. It has garnered over $80 million in revenue since its launch in 2019.

Unstoppable Domains is a San-Francisco-based digital identity platform. Launched in September 2019, the web3 startup has quickly risen through the ranks, overtaking the likes of ENS and other such naming services. On July 27, 2022, the web3 startup even closed a Series A funding round worth $65 million. The round was led by Pantera Capital and took the company to a valuation of $1 billion.
What does Unstoppable Domains do?
Unstoppable Domains works just like ENS. It offers to convert the complex alphanumeric private key of a crypto wallet into URL-based domain names. For instance, it can link machine-readable wallet addresses like '3FZbgi29cpjq2GjdwV' to a human-readable name like 'XYZ.coin'. This helps simplify crypto payments.
These usernames are offered as NFTs and can be traded on secondary markets. This allows users to buy usernames, hold on to them and sell them for a better price later. This is very much like purchasing domain names in Web2. So far, Unstoppable Domains has registered 2.5 million domains and forged 300 partnerships with leading web3 companies. It has garnered over $80 million in revenue since its launch in 2019.
Unstoppable Domains business partnerships
Last month, Unstoppable Domains entered into a partnership with crypto payment firm MoonPay. The tie-up allows MoonPay users to send and receive digital tokens using shorter and more manageable domain names instead of lengthy and complex wallet addresses. In August 2021, Circle, which runs USDC stablecoin, inked a partnership with Unstoppable Domains to implement simple and easily readable '.coin' usernames for USDC payments.
Ethereum Name Service is not a rival
Unstoppable Domains' unicorn status comes within weeks of a sharp rise in ENS domain registrations. The demand for ENS domain names grew over 200 percent in the first week of July. Registrations seem to have spiked after the domain "000.eth" was taken for 300 ETH or $315,000. During this period, gas fees on Ethereum also dropped considerably, which could be another reason for the jump in registrations.
Driven by the rising sales, the ENS' daily revenue rose to over $680,000. That's quite a positive trend in the current bear market.
However, even with such numbers, Unstoppable Domains doesn't see ENS as a rival. The company is working to improve crypto accessibility and supports any firms that can help in this regard. "We're supportive of anything that is helping to get to a world where people own their digital identity and own their digital property online," said founder and CEO of Unstoppable Domains, Matthew Gould, to Decrypt.
Unstoppable Domains vs ENS
Unstoppable Domains holds certain advantages over Ethereum Name Service. For instance, with ENS, domain owners pay for a certain number of years, after which they need to renew their service. Also, since ENS is built on the Ethereum blockchain, the purchase and the renewal transaction will incur gas fees.
On the other hand, Unstoppable Domains provides usernames for perpetuity. Once bought, they are yours forever. Moreover, since it is built on Polygon, purchasing a username is faster and cheaper than Ethereum.
Moreover, getting an ENS username can be a bit complex. First, users need to have an external crypto wallet. Only then can they purchase an ENS URL and link it to the wallet address. But with Unstoppable Domains, your username works as a wallet. This makes it easier for first-time crypto users.
However, the advantage of ENS is that it is operated by a decentralized autonomous organization (DAO). Therefore, instead of centralized leadership, users vote on future policies of the DAO and can also submit proposals of their own. This allows the community to decide how the DAO is run and dictate its future.
As far as pricing is concerned, both services offer domains starting from $5. However, prices can vary based on the domain name and can reach very large amounts in some cases.
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