Web3 Domains Beyond Names: The Rise of ENS, Space ID, and Decentralized Identity

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In recent months, one topic has dominated conversations across the blockchain and Web3 communities: Web3 domain names. At the forefront of this surge stands the Ethereum Name Service (ENS), which has transitioned from a niche utility to a cultural phenomenon. Since April, ENS domain registrations have skyrocketed — from rare 3-digit names like 123.eth to increasingly sought-after 4- and 5-character variants. What began as a quiet infrastructure project has evolved into a speculative and social movement, with floor prices climbing daily and high-profile figures adopting .eth handles.

Even venture capitalists are joining in. Nick Tomaino, founding partner of 1confirmation, changed his Twitter handle to 1492.eth, symbolizing historical significance — the year Columbus began his first voyage. This isn’t just about vanity; it’s about identity, ownership, and the future of digital presence.

The Meteoric Growth of ENS and the Rise of Alternatives

Data paints a clear picture of ENS’s explosive growth. Since its launch in 2017, the protocol has generated approximately $61.5 million in total revenue**, with nearly **$46 million earned in 2025 alone — meaning about 75% of all historical income was captured within a single year.

The momentum is undeniable:

While June saw a brief cooldown, activity rebounded strongly. August recorded over 300,000 new domain registrations, pushing the total number of ENS domains to 2.17 million, with $4.7 million in protocol revenue**. By mid-September, already **$2.32 million had been earned — on track to exceed both July and August.

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This resurgence hasn’t occurred in isolation. The success of ENS has catalyzed interest in alternative Web3 naming systems built on other blockchains.

SPACE ID and the .bnb Boom

One standout is Space ID, which recently raised seed funding led by Binance Labs. Its .bnb domain service offers affordable access to Web3 identities on the BNB Chain. According to Dune Analytics, the average registration cost is just 0.0418 BNB (roughly $12). Due to overwhelming community demand, Space ID delayed the next phase of domain registration to accommodate feedback.

.bit: Bridging Identity Across Chains

Meanwhile, .bit (formerly DAS), built on the Nervos network, has also gained traction. On September 15, it reported three consecutive days of record-breaking daily registrations, reaching 138,000 total accounts and 48,000 unique registrants. More than just a naming service, .bit positions itself as a cross-chain decentralized identity (DID) solution.

From Digital Addresses to Web3 Identity Cards

Why are these domains gaining such momentum? Because they do far more than replace long wallet addresses like 0x....

At their core, Web3 domains serve as digital identity cards — the .com equivalents of the decentralized internet.

Branding in the Decentralized Era

Today, it’s standard practice for crypto projects to secure branded ENS domains. For example, Project Galaxy’s rebrand to Galxe likely included early acquisition of galxe.eth. But adoption isn’t limited to Web3 natives.

Major Web2 brands are entering the space:

These aren’t mere marketing stunts — they signal a strategic shift toward owning digital real estate in an emerging ecosystem.

Personal Identity and Social Expression

For individuals, ENS domains offer a way to craft a persistent, portable online identity. Think of it as your Twitter handle meets passport — fully owned by you, not controlled by any platform.

High-profile users like Vitalik Buterin (vitalik.eth) and Ethereum core developer Tim Beiko (terence.eth) use their domains publicly. But anyone can register one and customize it with:

This transforms a simple address into a rich digital profile — usable across dApps, DeFi platforms, and social protocols.

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The Bigger Vision: Decentralized Identity (DID) and Beyond

While branding and personalization are powerful drivers, the true ambition of ENS, Space ID, and .bit goes deeper: building a decentralized identity (DID) layer for the internet.

Reclaiming Control Over Identity

In today’s web (Web2), your identity is fragmented and controlled by corporations:

These companies monetize your behavior while offering little transparency or compensation. Worse, they’re vulnerable to breaches, censorship, and arbitrary bans.

DID flips this model. Using blockchain technology, users gain full ownership of their digital selves. No intermediaries. No single point of failure.

With ENS or .bit, you can:

It’s like keeping your ID documents at home — accessible only when you choose to share them.

Toward a Web3 Credit System

Imagine a future where your .eth domain reflects more than just your wallet. It could store:

This creates the foundation for a decentralized credit scoring system — a “Web3芝麻信用” (Web3 Zhima Credit). Protocols could assess risk based on verifiable identity data rather than opaque algorithms.

For example:

This isn’t science fiction — it’s already being explored by projects integrating ENS into governance, authentication, and access control.

Frequently Asked Questions (FAQ)

Q: What exactly is a Web3 domain?
A: A Web3 domain is a human-readable name (like myname.eth) that maps to blockchain addresses and can store profile data. Unlike traditional domains, it’s owned by the user via a wallet and runs on decentralized networks.

Q: Can I use my ENS domain across different blockchains?
A: ENS primarily works on Ethereum and L2s like Arbitrum and Optimism. However, cross-chain bridges and protocols like .bit enable multi-chain interoperability for identity and resolution.

Q: Are Web3 domains only useful for crypto users?
A: No. While they simplify crypto transactions, their real value lies in becoming universal digital IDs — useful for social media, logins, verifiable credentials, and even real-world services.

Q: Is buying a short ENS domain a good investment?
A: Short names (e.g., abc.eth) are scarce and have seen price appreciation due to demand. However, like any asset, prices can fluctuate. Evaluate based on utility — branding, identity use — not just speculation.

Q: How do I register a Web3 domain?
A: Visit official registrars like ens.domains for ENS or space.id for .bnb domains. Connect your wallet, search for availability, and complete registration with crypto.

Q: Can I lose my Web3 domain?
A: Yes — if you lose access to your wallet or fail to renew annually (for ENS), you may lose control permanently. Always back up keys and set renewal reminders.

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Final Thoughts: The Foundation of a User-Owned Internet

Web3 domains like ENS, Space ID, and .bit are more than trendy usernames or speculative assets. They represent a foundational shift — from corporate-controlled identities to self-sovereign digital personas.

As adoption grows, these domains will power login systems, credit models, social graphs, and cross-platform reputations. They’re not just names; they’re gateways to a decentralized future, where users finally own their data, history, and online presence.

The race isn’t just about who gets the shortest .eth name — it’s about who builds the most robust identity layer for Web3.

And that revolution starts with a single domain.