Combination of DNS & ENS & SBT will create an identification ecosystem in digital world.
Many existing companies, institutions and groups in 21st century own DNS or Domain Name Service which is provided by ICANN (google says, “which is the global non-profit organization responsible for coordinating the Internet’s core systems of unique identifiers, most notably the Domain Name System”)
ENS is the public name service which can represent the name of existing wallets. Furthermore, ENS protocol allows the search of the domain website which is linked to the connected ENS. For example, if you want to check Vitalik’s blog(Vitalik.ca), you can also type in Vitalik.eth to connect the website. DNS is provided by ICANN and is distributed via Godaddy and other DNS rental service.
So, what’s the main reason that users need to use ENS instead of or together with DNS? Users can be not only individuals but firms, institutions or groups since many domains are owned by not individuals but groups or firms. The users can connect their website and have their own institutional wallet which can create its own contract.
We have seen Adidas, RTFKT and likes creating their own wallets and NFT contracts. Adidas didn’t buy ENS of its name while RTFKT has bought ENS of its name, RTFKT.eth. Adidas’ wallet is 0x6D1c18bcCDe60142AF23A3f8Aa6f5F59C532a675. It’s only verified in Opensea which is the centralized NFT marketplace service company. This difference will impact authentication of the wallet in future. Adidas may have to keep relying on Opensea for its authentication, while RTFKT can produce many other activities not only in Opensea but in other platforms.
With the rise of NFT and its possibilities together with the new concept of non-transferable NFT or Soul-Bound Token(in short, “SBT”), ENS can play an important role in identifying each wallets giving them names. In digital space, many creative activities will boom.
For example, a virtual or real marathon organized by RTFKT can give out its SBT participation badges to the participants and give some special SBT badges to the selected winners. The SBT will be sent out to the participants’ wallets and can be shown to the public that they have participated the RTFKT marathon via SBT’s contract address which also clearly shows the name of RTFKT. This badge eventually becomes a context information of the participants.
Existing companies, institutions or groups with DNS may adopt ENS with their own wallets. They can then give out SBT as verifiable credentials or identification proofs to individuals for future verification. I believe SBT alone of course can’t solve the identity verification issue but can be very helpful in web3 user verification.