Coinbase's Strategic Integration of ENS

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Coinbase, one of the world’s most trusted cryptocurrency platforms with over 100 million users, launched a groundbreaking initiative in September 2022 to tackle a persistent barrier in blockchain adoption: the complexity of hexadecimal wallet addresses. By leveraging the Ethereum Name Service (ENS) and EIP-3668 (CCIP-Read), Coinbase introduced cb.id—a human-readable naming system that transforms long, error-prone addresses into simple usernames like jesse.cb.id. This innovation not only improved user experience but also reduced transaction errors and enhanced security.

With over 11 million registrations—surpassing traditional .eth domains fivefold—the success of cb.id signaled a pivotal shift. It prompted Coinbase to accelerate its decentralization roadmap, culminating in the launch of base.eth subnames on its Layer 2 network, Base. This marked a strategic evolution from an offchain identity solution to a fully onchain, decentralized identity layer rooted in Ethereum’s core principles.

This article explores Coinbase’s journey from cb.id to base.eth, analyzing the technology, motivations, and broader implications for the future of onchain identity, decentralized naming, and Web3 user experience.

The Challenge of Blockchain Address Complexity

Since Bitcoin’s inception in 2009, blockchain technology has promised transparency, security, and decentralization. Yet one major obstacle has hindered mass adoption: the use of long, alphanumeric wallet addresses. A typical Ethereum address—like 0x742d35Cc6634C0532925a3b8D4C7d2cD6B8e7f1B—is difficult to remember, prone to input errors, and intimidating for newcomers.

Coinbase, founded in 2012 and publicly listed on NASDAQ in 2021, has long served as a gateway to the crypto economy. Despite its regulatory compliance and user-friendly interface, the company recognized that complex addresses undermined trust and usability. The need was clear: a unified, secure, and intuitive identity layer that could simplify interactions across wallets, dApps, and Layer 2 networks.

👉 Discover how modern identity solutions are reshaping crypto accessibility.

Industry Responses to Address Usability

Over the years, the crypto ecosystem has experimented with several approaches to simplify user identification:

Enter ENS (Ethereum Name Service), launched in 2017. ENS allows users to register human-readable names like alice.eth, which resolve to their wallet addresses, smart contracts, or even metadata. By anchoring identity on-chain, ENS ensures ownership is secure, censorship-resistant, and fully under user control.

Today, ENS powers nearly 2 million registered names with over 800,000 unique owners. It’s integrated across major platforms including Uniswap, Farcaster, XMTP, GoDaddy—and notably, Coinbase.

Why Coinbase Chose ENS

Coinbase faced a dual challenge: simplifying onboarding for millions of users while maintaining alignment with decentralization principles. The solution needed to be:

In response, Coinbase launched cb.id—an ENS-powered namespace that allows users to claim free usernames during wallet setup. This seamless integration made sending and receiving crypto as easy as messaging a friend.

How cb.id Works: A Technical Overview

cb.id leverages two key Ethereum standards:

Here’s how the resolution process works:

  1. Client Request: A user searches for jesse.cb.id in their wallet.
  2. Resolver Check: The ENS resolver on Ethereum Mainnet checks if the name exists.
  3. Offchain Data Trigger: Since cb.id data is stored offchain (e.g., on AWS), the resolver returns a "revert" with instructions to query a gateway.
  4. Gateway Query: The client contacts Coinbase’s API gateway.
  5. Signed Response: The gateway returns signed profile data.
  6. Validation & Resolution: The resolver validates the signature and returns the resolved address.

This system enables fast, flexible data retrieval while maintaining cryptographic integrity.

Transition to base.eth: The Move Onchain

Despite cb.id’s success, it relied on centralized infrastructure—data stored offchain meant trust assumptions that clashed with decentralization ideals. To address this, Coinbase launched base.eth, an onchain subdomain system built directly on its Layer 2 network, Base.

Unlike cb.id, base.eth names are fully stored and resolved on-chain using:

Now, when a user queries user.base.eth, the resolver uses EVMGateway to validate data against Ethereum Mainnet, ensuring decentralization without sacrificing speed or cost.

👉 See how Layer 2 networks are enabling scalable identity solutions.

Overcoming Early Adoption Challenges

Coinbase was among the first to implement CCIP-Read at scale. However, early adoption came with hurdles:

This highlighted a key reality: even powerful innovations depend on ecosystem-wide adoption. Coinbase’s leadership helped drive support, accelerating integration across platforms like Linea, zkSync, and Clave.

Key Insights for Businesses

Coinbase’s journey offers valuable lessons for companies entering the onchain economy:

👉 Learn how your business can implement decentralized identity today.

The Future of Onchain Identity

cb.id was a stepping stone; base.eth is the future. It represents a broader trend: large platforms using Layer 2 networks to create branded ecosystems with built-in identity layers.

The emerging playbook looks like this:

  1. Launch a Layer 2 EVM (e.g., Base).
  2. Issue branded ENS subdomains (e.g., user.base.eth).
  3. Integrate stablecoins and dApps.
  4. Onboard users directly from existing UIs.

This model allows companies to maintain control over their network while staying connected to Ethereum’s security and decentralization.

Frequently Asked Questions

Q: What is the difference between cb.id and base.eth?
A: cb.id is an offchain username system using CCIP-Read to fetch data from centralized servers. base.eth is fully onchain, storing names and data directly on Base L2 with cryptographic verification via Ethereum Mainnet.

Q: Can I still use my cb.id username?
A: Yes. Existing cb.id usernames remain functional, but Coinbase is encouraging migration to base.eth for greater decentralization and long-term sustainability.

Q: How do I claim a base.eth subname?
A: Users can claim a free base.eth subname through Coinbase Wallet. The process is seamless during wallet setup or via the profile management section.

Q: Is ENS only for Ethereum addresses?
A: No. ENS supports multiple blockchain addresses (Bitcoin, Solana, etc.), content hashes, and metadata like avatars and social links—making it a universal identity layer.

Q: Why is onchain identity important?
A: Onchain identity ensures users own their digital personas without relying on centralized providers. It enables trustless interactions across dApps, social networks, and financial services.

Q: Can businesses create their own ENS namespaces?
A: Absolutely. Companies can register their own TLDs or subdomains (e.g., company.eth) and issue branded identities—just as Coinbase did with base.eth.

Final Thoughts

Coinbase’s integration of ENS—from cb.id to base.eth—demonstrates how user experience and decentralization can coexist. By simplifying identity management, reducing errors, and promoting ecosystem-wide standards, Coinbase has set a new benchmark for Web3 platforms.

As the multichain future unfolds, ENS-powered identities will become essential infrastructure. For developers and businesses alike, adopting decentralized naming isn’t just an option—it’s a strategic imperative.

Core Keywords:

ENS, Ethereum Name Service, cb.id, base.eth, onchain identity, Layer 2, CCIP-Read, decentralized naming