Venmo and PayPal have formed a partnership with Ethereum Name Service (ENS) to enable users to transmit and receive cryptocurrency using ENS names.
On September 10, Venmo and PayPal implemented Ethereum Name Service (ENS) names, which enabled more than 270 million users in the United States to transmit cryptocurrency using simplified blockchain addresses.
This most recent integration enables Venmo and PayPal users to transfer cryptocurrency using straightforward ENS names rather than lengthy wallet addresses.
ENS has announced that this integration will enable users to send crypto payments to ENS identities, thereby eliminating the necessity for complex wallet addresses and reducing the likelihood of transaction errors, as stated on X (Formerly Twitter).
In the past, users were required to manually input lengthy alphanumeric wallet addresses or scan QR codes, which could result in errors, particularly when managing substantial amounts.
This new feature enables users in the United States to directly input an ENS name, such as “username.eth,” into PayPal or Venmo. The system will then automatically retrieve and verify the Ethereum wallet address affiliated with the ENS name.
The companies stated in their statement that the feature would significantly reduce friction in crypto payments. It would simplify the process of transacting in digital currencies for users, as they would not have to fret about errors that may result from inputting incorrect wallet information.
ENS Broadens Its Influence by Integrating Venmo and PayPal In the midst of a legal dispute, ENS has been diligently striving to improve the functionality of its domain names. The company revealed a partnership with web domain registrar GoDaddy in February, which enables users to connect their traditional.com domains to their ENS names. This effectively connects a.eth domain name to an Ethereum wallet address.
Since its establishment in 2017 with an Ethereum grant, the Ethereum Name Service (ENS) has experienced substantial growth, with more than 2 million on-chain and 4 million off-chain names registered.
ENS is an open-source protocol that substitutes intricate Ethereum addresses with user-friendly names. It is worth noting that in May, ENS Labs announced a migration to a layer-2 network in order to enhance transaction speeds and reduce petrol fees.
Conversely, PayPal and its subsidiary Venmo, which initiated cryptocurrency support in 2021, are the most recent platforms to incorporate ENS, enabling the use of ENS usernames to facilitate crypto payments.
PayPal and Venmo have also been steadily increasing their presence in the cryptocurrency market. PayPal recently implemented MoonPay integration for cryptocurrency purchases and announced the launch of its PYUSD stablecoin on Venmo, which facilitates seamless transfers between the two platforms.
Additionally, ENS has recently encountered a patent dispute, despite the fact that the company is experiencing significant growth. ENS Labs submitted a petition to the U.S. Patent and Trademark Office in May 2024, contesting a patent that had been granted to Unstoppable Domains. ENS contends that the patent trespasses on its open-source technology and lacks novel contributions.
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