On September 10, ENS Labs announced a new integration that will enable users of Venmo and PayPal to transfer cryptocurrency using Ethereum Name Service (ENS) names. This development is poised to expand the use of ENS names to over 270 million users in the United States.
ENS names serve as user-friendly aliases for blockchain addresses. Instead of having to enter lengthy and complex addresses composed of alphanumeric characters, users can now use simpler, more memorable names like “yourname.eth” for cryptocurrency transactions. This integration aims to make transferring digital assets more straightforward while minimizing errors and reducing the risk of lost funds.
Khori Whittaker, executive director of ENS Labs, emphasized the significance of the integration, stating it would introduce ENS naming capabilities to millions of users through PayPal’s platforms, including Venmo, PayPal Mobile, and PayPal Web.
PayPal’s Active Role in Crypto
PayPal has been actively involved in the blockchain space, evidenced by its stablecoin, PayPal USD (PYUSD), which recently surpassed $1 billion in total market capitalization, according to CoinMarketCap. In May 2023, PayPal extended its stablecoin to the Solana network, partnering with Crypto.com, Phantom, and Paxos to facilitate user onboarding.
Marta Cura, director of business development at ENS Labs, highlighted the importance of this collaboration: “Working with PayPal and Venmo allows us to reach those who are new to the space and those who prefer the familiarity of Web2 payment platforms.”
Evolution of ENS and Ongoing Challenges
ENS, an open-source protocol designed to simplify Ethereum network addresses, has been making significant strides. In May, ENS Labs migrated the protocol to a layer-2 network to reduce gas fees and enhance transaction speeds. This migration aims to address scalability issues and improve the user experience.
However, ENS Labs is currently engaged in a legal dispute regarding patent rights. In May 2024, the company challenged the validity of a patent granted to Unstoppable Domains by the US Patent and Trademark Office. ENS Labs contends that the patent, awarded for technology similar to that developed by ENS, lacks originality and infringes on open-source principles.
ENS Labs has stated that their petition is intended to preserve the collaborative nature of the web and ensure that the open-source ethos remains protected.
The integration of ENS names with PayPal and Venmo marks a significant step forward in simplifying cryptocurrency transactions for a broad audience. This move not only enhances the ease of use for new and existing users but also underscores PayPal’s ongoing commitment to blockchain innovation. Meanwhile, ENS Labs continues to evolve and protect its technology amidst ongoing legal challenges, aiming to maintain its position as a key player in the blockchain space.
