Coinbase, one of the world’s largest cryptocurrency exchanges with over 100 million users, has taken a pioneering step in simplifying blockchain identity through its integration of the Ethereum Name Service (ENS). In September 2022, the company launched cb.id, an ENS-powered namespace that transforms complex 42-character Ethereum addresses into user-friendly usernames like jesse.cb.id. This innovation significantly reduced transaction errors and improved onboarding—key hurdles in mainstream crypto adoption.
The success of cb.id—with more than 11 million registrations, far surpassing traditional .eth domains—catalyzed a strategic evolution: the launch of base.eth subnames. This marks a pivotal shift from offchain usernames to fully onchain, decentralized identities hosted on Base, Coinbase’s Layer 2 Ethereum network. This article explores Coinbase’s journey from cb.id to base.eth, analyzing the technology, motivations, and broader implications for the future of digital identity in Web3.
The Challenge of Blockchain Address Complexity
Since Bitcoin's emergence in 2009, blockchain technology has promised transparency, security, and decentralization. Yet one persistent barrier remains: the complexity of hexadecimal wallet addresses. These long, case-sensitive strings (e.g., 0xAbC...123) are not only difficult to remember but also prone to costly input errors.
For Coinbase—founded in 2012 and publicly listed on NASDAQ in 2021—scaling user adoption meant addressing this usability gap. Despite being a trusted gateway into crypto, the exchange recognized that frictionless identity management was essential for mass onboarding.
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Industry Responses to Identity Management
Over time, the crypto ecosystem developed several solutions to address address complexity:
- Wallet-based contact lists: Improved internal usability but lacked cross-platform interoperability.
- Centralized username systems: Offered convenience but contradicted core blockchain principles like decentralization and self-sovereignty.
- Blockchain-based naming services: Emerged as the most promising path forward.
Among these, ENS (Ethereum Name Service), launched in 2017, became the gold standard. By mapping human-readable names like alice.eth to wallet addresses, ENS provided a secure, decentralized alternative. Today, ENS hosts nearly 2 million registered names and is supported across major dApps, wallets, and even traditional registrars like GoDaddy.
Why Coinbase Chose ENS
Coinbase needed a unified identity layer across its growing ecosystem—including Coinbase Wallet, Base, and various financial products. The goals were clear:
- Simplify sending and receiving crypto
- Reduce transaction errors
- Enable seamless cross-dApp identity portability
- Uphold decentralization principles
The answer lay in ENS and its advanced protocols: EIP-3668 (CCIP-Read) and ENSIP-10 (Wildcard Resolution). These enabled Coinbase to build cb.id, an offchain namespace that leverages ENS infrastructure while maintaining control over user experience.
How cb.id Works: A User-Centric Approach
When users download Coinbase Wallet, they’re prompted to claim a free username.cb.id during setup. This username becomes their default identifier for:
- Receiving cryptocurrency
- Building an onchain profile
- Interacting with dApps across Web3
Searching for a user is simple: enter username.cb.id or username.eth in supported interfaces. Behind the scenes, the system resolves these names using ENS smart contracts.
Profiles are hosted at profile.coinbase.com/username.eth, blending centralized hosting with decentralized verification. This hybrid model allowed rapid deployment and scalability—critical for a platform serving millions.
Understanding CCIP-Read: The Engine Behind cb.id
The magic behind cb.id lies in CCIP-Read (EIP-3668), a protocol that enables smart contracts to securely fetch offchain data. Here’s how it works:
- Client Request: A wallet tries to resolve
jesse.cb.id. - Resolver Instruction: The ENS resolver returns a "revert" with instructions to query an external gateway.
- Gateway Query: The client contacts Coinbase’s API server (the gateway), which retrieves profile data from AWS.
- Signed Response: The gateway returns cryptographically signed data.
- Onchain Validation: The resolver verifies the signature and completes resolution.
This process ensures data integrity while allowing flexible, scalable storage—perfect for early-stage adoption.
From Offchain cb.id to Onchain base.eth
While cb.id was successful, it relied on centralized data storage—a compromise with decentralization. To align fully with Web3 values, Coinbase introduced base.eth subnames on its Layer 2 network, Base.
Unlike cb.id, base.eth names are:
- Stored directly onchain
- Fully decentralized
- Censorship-resistant
- Backed by Ethereum’s security via Base’s EVMGateway
When resolving a base.eth name, the EVMGateway acts as an onchain API proxy. It fetches data from Base L2 and verifies it against Ethereum Mainnet proofs using CCIP-Read, ensuring trust-minimized resolution.
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Key Differences: cb.id vs. base.eth
| Aspect | cb.id (Offchain) | base.eth (Onchain) |
|---|---|---|
| Data Storage | Centralized (e.g., AWS) | Decentralized (on Base L2) |
| Security Model | Trust in Coinbase gateway | Trust-minimized via cryptographic proofs |
| Scalability | High (fast updates) | High (L2 efficiency) |
| Decentralization | Partial | Full |
| User Control | Limited | Complete |
The transition reflects Coinbase’s long-term vision: building a truly decentralized identity layer for the onchain economy.
Overcoming Early Adoption Challenges
As one of the first major adopters of CCIP-Read at scale, Coinbase faced ecosystem-wide hurdles:
- Many wallets and dApps didn’t support EIP-3668 or ENSIP-10
- Users encountered broken experiences outside Coinbase’s ecosystem
- Developer awareness of new ENS specs was low
These challenges highlight a critical truth: even groundbreaking innovations depend on broad ecosystem alignment. Coinbase’s implementation helped accelerate adoption, paving the way for other L2s like ZKSync and Linea to launch their own ENS subnames.
Strategic Insights for Businesses
Coinbase’s journey offers valuable lessons for companies entering Web3:
- Leverage permissionless protocols: ENS is open and composable—anyone can build on it without permission.
- Prioritize user experience: Replace complex addresses with simple usernames at onboarding.
- Start with offchain, evolve to onchain: Use hybrid models for speed, then decentralize over time.
- Partner strategically: ENS Labs’ endorsement amplified credibility and network effects.
- Invest in documentation: Clear guides lower the barrier to developer adoption.
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The Future of Onchain Identity
The shift from cb.id to base.eth signals a broader trend: onchain identity is becoming foundational. As more applications require verifiable digital identities—from social networks to lending protocols—ENS-powered namespaces offer a scalable, secure solution.
Coinbase’s playbook is now clear:
- Launch a branded L2 (Base)
- Issue ENS subnames (base.eth)
- Integrate stablecoins and dApps
- Onboard users seamlessly
This model will likely be replicated by other tech giants aiming to own their Web3 ecosystems—while remaining interoperable with Ethereum.
Frequently Asked Questions
Q: What is the difference between cb.id and base.eth?
A: cb.id is an offchain username system using centralized data storage, while base.eth is fully onchain and decentralized, built on Coinbase’s Layer 2 network.
Q: Can I still use my cb.id username?
A: Yes. Existing cb.id usernames remain functional and may eventually be bridged or mapped to base.eth identities.
Q: How do I claim a base.eth subname?
A: Users can claim free subnames through the Coinbase Wallet interface as part of Base’s identity rollout.
Q: Is ENS only for Ethereum addresses?
A: No. ENS supports multiple blockchain addresses (Bitcoin, Solana, etc.) and can store metadata like avatars and social links.
Q: Why does decentralization matter for usernames?
A: Decentralized identities give users full control, prevent censorship, and ensure long-term accessibility without relying on any single company.
Q: Can businesses create their own ENS subdomains?
A: Yes. Organizations can register subdomain managers under their .eth domains and issue custom namespaces for customers or employees.
Conclusion
Coinbase’s integration of ENS—from the launch of cb.id to the decentralization push with base.eth—represents a landmark moment in Web3 identity evolution. By combining user-centric design with cutting-edge protocols like CCIP-Read and EVMGateway, Coinbase has set a new standard for how digital identities should work in the onchain economy.
As multi-chain ecosystems grow, ENS-powered usernames will become as essential as email addresses—a universal key to accessing decentralized services. For businesses, developers, and users alike, the message is clear: the future of identity is onchain, and it starts with ENS.
Core Keywords: ENS, Ethereum Name Service, cb.id, base.eth, blockchain identity, decentralized identity, CCIP-Read, onchain usernames