A new partnership between ENS Labs, PayPal, and Venmo could make it easier for people to use cryptocurrency for everyday payments, potentially bringing millions of new users to the crypto space.
Ethereum Name Service (ENS) provides easy-to-remember usernames, like “John.eth,” to replace long, confusing crypto wallet addresses. Now, thanks to this partnership, PayPal and Venmo users can send and receive crypto using these simple usernames, making transactions faster and reducing errors.
Marta Cura, from ENS Labs, believes this is just the beginning. In an interview, she explained that this integration could open the door for more payment providers and businesses to adopt crypto:
“This is more than just ENS. It could lead to new use cases with other payment systems and business models.”
How It Works
Usually, crypto addresses are long strings of numbers and letters, which can easily lead to mistakes when sending or receiving funds. ENS simplifies this by giving users a short, easy-to-read name that works like a regular email address, reducing errors and making transactions more user-friendly.
With nearly 2 million ENS names already registered, it’s clear that people are eager for a simpler way to use crypto.
Traditional Finance Still Important
While this partnership is a big step forward, getting crypto to be widely used will still depend on traditional financial companies (TradFi), said Cura. Working with big financial institutions takes time due to strict rules and processes, but their involvement could help bridge the gap between Web2 and Web3 users.
Preventing Scams
ENS usernames also add a layer of security. There’s a scam called “address poisoning,” where scammers send small amounts of crypto to trick users into sending money to the wrong address. ENS names can help prevent this by making it easier to spot fake addresses.
For example, a trader recently lost $68 million in one of these scams. According to Cura, if the trader had used an ENS name, the scam could have been avoided:
“This person could have saved $70 million by using an ENS name. Every day, people lose money because they didn’t notice a tiny mistake in the address.”
Thankfully, in a strange twist, the thief returned the stolen $68 million after being tracked down by online investigators.
Source: https://cointelegraph.com/news/paypal-venmo-ens-kickstart-mainstream-crypto-payments-adoption
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