Sending cryptocurrency just got a lot easier for millions of users. Coinbase has rolled out a major update to its wallet platform, enabling transfers using simple usernames instead of long, complex wallet addresses. This upgrade marks a significant step toward mainstream crypto adoption by improving usability and reducing common user errors.
The change was officially announced on February 25 in a blog post, highlighting the company’s ongoing efforts to simplify the digital asset experience. Now, instead of copying and pasting a 42-character string like 0x742d35Cc6634C0532925a3b8D4C155D791b0Ab9, users can send funds using human-readable identifiers—either a personalized @username or an Ethereum Name Service (ENS) domain such as yourname.eth.
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Simplifying Crypto Transfers with Human-Readable Addresses
One of the biggest barriers to widespread cryptocurrency use has always been complexity. New users often struggle with understanding wallet addresses, and even experienced ones occasionally make mistakes when handling long alphanumeric strings. A single typo can result in irreversible loss of funds.
Coinbase directly addresses this pain point with its latest enhancement. According to the announcement, many users have expressed frustration over “dealing with long and meaningless cryptocurrency addresses,” especially the risk associated with incorrect copying or pasting.
“Human-readable addresses help solve these issues,” Coinbase stated. “Now, there are services that allow you to link a short, easy-to-remember name to your crypto address. We believe these improvements will make cryptocurrency more user-friendly and support broader mainstream adoption.”
This shift not only enhances convenience but also boosts security. By reducing reliance on error-prone manual input, the chances of sending crypto to the wrong address drop significantly.
What Are Username-Based Transfers?
Coinbase supports two types of username-based transfers:
- @usernames: These are unique identifiers created within the Coinbase ecosystem (e.g., @johndoe). They function similarly to social media handles and are directly linked to a user's wallet.
- ENS names: Short for Ethereum Name Service, ENS allows users to register domains like
alice.eththat resolve to one or more blockchain addresses. Unlike Coinbase usernames, ENS is a decentralized protocol built on Ethereum.
Both systems serve the same core purpose: replacing machine-readable addresses with names people can actually remember and verify visually.
For example:
- Instead of sending USDC to
0x1a2b3c...xyz, you can now send it to@cryptoenthusiastorfriend.eth. - Recipients don’t need to share sensitive strings—they can simply provide their username.
This functionality is currently supported across major assets including Bitcoin (BTC), Ethereum (ETH), and popular ERC-20 tokens like USDC and DAI.
Understanding Ethereum Name Service (ENS)
The Ethereum Name Service (ENS) plays a crucial role in this evolution. Launched in May 2017, ENS is a decentralized naming system built on Ethereum smart contracts. It works much like the Domain Name System (DNS) for the internet—but for blockchain addresses.
Initially, ENS only supported Ethereum addresses. However, in October 2019, it expanded to include multi-currency support, allowing a single .eth name to point to wallets across different blockchains, including Bitcoin, Litecoin, and others.
Names are acquired through an open auction process conducted on-chain. Users bid ETH for desired names, and after the auction concludes, the highest bidder registers the name. While this system promotes fairness, it has also attracted speculation.
In the early days, many users bought premium names like crypto.eth or money.eth, hoping to resell them at a profit—a digital version of domain flipping.
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Challenges and Security Concerns with ENS
Despite its utility, ENS hasn’t been without issues. In October 2019, the auction system was temporarily halted due to a critical bug that incorrectly assigned names to lower bidders. The issue stemmed from a flaw in the auction logic, which allowed malicious actors to exploit timing vulnerabilities.
Additionally, because ENS operates on open smart contracts, any undiscovered vulnerabilities could be targeted by hackers. While the core team has since implemented multiple audits and upgrades, it underscores the importance of vigilance in decentralized systems.
Nonetheless, ENS continues to gain traction. As of 2025, hundreds of thousands of .eth domains have been registered, with growing integration across wallets, decentralized apps (dApps), and NFT marketplaces.
Why This Update Matters for Mainstream Adoption
Ease of use is key to bringing crypto to the next billion users. Traditional financial systems rely on familiar identifiers—account numbers tied to names, email addresses, or phone numbers. Cryptocurrency, by contrast, has historically felt alienating due to its technical nature.
By introducing username-based transfers, Coinbase bridges that gap. It aligns crypto transactions with user expectations shaped by platforms like Venmo, PayPal, or Apple Pay—where sending money feels intuitive and instant.
Moreover, this feature reduces onboarding friction. New users no longer need to understand hexadecimal addresses or QR codes to participate. They can start transacting immediately using something as simple as a username.
Frequently Asked Questions (FAQ)
Q: Can anyone see my Coinbase @username?
A: Yes, your @username is public once set. However, it does not reveal your full wallet address or personal information beyond what you choose to share.
Q: Is there a fee for using usernames or ENS domains?
A: Using a Coinbase @username is free. For ENS domains, you must pay a registration fee in ETH, plus a small annual renewal cost.
Q: Do both sender and receiver need Coinbase Wallet?
A: No. You can send crypto via username if the recipient uses Coinbase Wallet. For ENS names (name.eth), the recipient can use any wallet that supports ENS resolution.
Q: What happens if I send crypto to an invalid username?
A: The transaction will fail before processing, preventing loss of funds. The system validates usernames in real time.
Q: Can I link my ENS name to my Coinbase account?
A: Yes. Coinbase Wallet allows you to connect your existing ENS domain and use it for receiving payments.
Q: Are these transfers faster than regular ones?
A: The transfer speed depends on network congestion and confirmation times—not the addressing method. However, setup is faster since you avoid manual address entry.
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Final Thoughts
Coinbase’s move to support username-based crypto transfers reflects a broader industry trend: prioritizing user experience without sacrificing decentralization. Whether through proprietary @usernames or open protocols like ENS, making crypto accessible is essential for long-term growth.
As digital assets become more integrated into everyday life, features like readable addresses will no longer be luxuries—they’ll be expectations. Platforms that lead in usability will likely dominate the next phase of web3 adoption.
For users, this means safer, simpler transactions. For the ecosystem, it signals progress toward true mass adoption.
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