In the world of Web3, we have witnessed the explosion of DeFi and NFT but both back to flatness. However, there is one sector that is continuously growing in trading volume, online traffic, and community consensus on its value. That sector is the blockchain naming service. The reason behind the explosion of ENS is public recognition and scarcity. The recognition increases traffic attention, while scarcity increases the trading volume and prices.
The active transactions of ENS are expanding from 3-digit to 4-digit, to 5-digit. At the same time, the entire industry is also expanding horizontally. The booming of ENS has been driving the growth of other naming services in different chains, including .sol and .bit. However, there is one project which enters the industry with .bnb naming service but hopes to make the universal multi-chain ID. It is Space ID.
SPACE ID’s name service network, which it is developing with Oracle, is decentralized, censorshop-resistant, and open-sourced. A Space ID is not just a username, but a self-sovereign database to locate users’ resources across any chain.
Product 1.0: .bnb domain
This is the first version of Space ID product, which includes a “.bnb” domain name service on the BNB Chain. This will allow everyone to have their first BNB Chain domain name, which currently serves the same purpose as “.eth”, allowing users to easily transfer assets and interact on DApps between BNB accounts with a more customized personal name.
The second version of Space ID will be free from one single chain and will use “:” as the prefix of the universal ID. “:mooncapital” can be used as Moon Capital’s SID and registered on all SPACE ID supported blockchains. In version 2.0, Space ID will connect multiple ecosystems together, as well as numerous DApps on each ecosystem, to create a truly universal domain name system. It will have three attributes:
- A universal username equipped with multi-chain interoperability.
- A decentralized identity in a single source of truth (SSOT) system.
- An ad-hoc oracle chain to enhance scalability and availability.
The first version of SPACE ID was launched in August 2022 along with the .bnb domain, bringing developers building on the BNB Chain a standard domain identifier. According to its Medium article, up to Sept 2nd, SPACE ID has completed 10 premium .bnb domain auctions on the Binance NFT marketplace. The highest two sales were 000.bnb for 1100 BNB and 999.bnb for 1000 BNB. It also had more than 19,000 .bnb domain names registered.
After the auction, Space ID started the Pre-registration, in which participants need to hold the previously issued Whitelist NFT Badge to get the whitelist to participate. In only the first 3 weeks of .bnb Domain Pre-registration, around 10K users have participated, and over 19K .bnb names have been registered.
While the user side is developing rapidly, Space ID is also enriching its partners in its ecosystem. Up to now, the team is working to partner and integrate with many projects within the BNB Chain ecosystem, including P12, Dtools, Relation, and Infinity Wallet.
In terms of financing, on September 2, 2022, Space ID announced the seed round of funding led by Binance Labs. The fund will be used in the upgrade of the .bnb domain and the development and construction of universal ID.
Technology: Ad Hoc Oracle Chain to Enhance Scalability and Availability
Space ID is powered by “Lucas”, an ad hoc blockchain that bridges and stores your data on different chains. Other two components are implemented in the SPACE ID architecture to enhance security and availability: “Jedi” and “Yoda”.
Jedi: Jedi is a smart contract running on various chains for name registration and resolution. It only accepts names that have been granted validity from Yoda.
Yoda: Yoda is an Oracle network that ensures the uniqueness of names registered across multiple chains. It will collect the registration events from different chains, consolidate the information, and grant authentication signatures to users who want to register or bridge names on any Jedi.
Lucas: Lucas is the director of everything. It’s the transcript, which is maintained by Yoda, that keeps the registration metadata.
ENS is the first launched domain name system and currently has the largest volume of transactions. Users can buy and mint .eth domain names on the Ethereum. According to Dune, as of September 9, 2022, the number of unique addresses on ENS is nearly 550k. The total number of registered domain names reached 2.26 million. ENS monthly revenue has exceeded 5 million dollars.
Unstoppable has launched a perpetual ownership domain name registration service based on the Ethereum and Polygon networks. Unstoppable Domain currently offers domain names such as .zil, .crypto, .coin, .wallet, . bitcoin, .x, .888, .nft, and .dao. Users can create as many subdomains as they like, and the price of the domain name varies depending on the popularity and length of the wording. As of September 9, 2022, there are over 2 million domain names registered on the Unstoppable platform ending in .crypto, .nft, .wallet, etc.
.bit is a new-type data container that users can own without permission. Any application can read the data in it, but only users can write data into it. Users have absolute ownership and control of this container. Now, .bit supports Polygon, Tron, BSC, and Ethereum. It also supports lots of wallets including Trust Wallet, Torus, imToken, etc.
On August 15, 2022, .bit announced a $13 million Series A funding round led by CMB International with participation from HashKey Capital, ChingSong Fund, GSR Ventures, GGV Capital and SNZ. As of September 9, 2022, there are over 130K domain names and 46K users on .bit.
Space ID was once a project selected for MVB V Incubation and now stood out among the many incubated teams, gaining a lot of traffic and revenue for their successful BD and marketing, the support of Binance, and the growth of the naming service industry.
But what we expect more is the second version of universal ID. If it really accommodates lots of public chain ecosystems and launches universal ID, it will surpass ENS and bring the domain name track into a more complete and grand landscape.
About Moon Capital
Moon Capital is a cutting-edge investment firm focused on blockchain and cryptocurrency. Moon Capital portfolio includes, Galxe, Woo Network , Matrix World, Litentry, DeepDAO and some other high-quality projects.