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Find the original tweet thread here:

How businesses may use #ENS subdomains…? A thread.

First, why all the fuss about subdomains? What is a subdomain? Are they new or something?

No, subdomains, or third-level level domains are hardly new. I have personally been working with them heavily since at least 2004.

A subdomain is simply the term reserved for an address segment or section that precedes the main portion of the name.

Let’s take a look at the structure of a name. We are using web2 terminology here, but whether a ‘domain name’ or an ‘ens name’ the structure is the same.

The anatomy of a Domain or ENS name

The most basic purpose of an ENS (or web2 DNS) name of course is to point to something. To point to a webhost IP address, where content is served for that hostname, for example.

So for our blockgurus name, on the XYZ TLD, the name points to an IP where we host our blog. The third level, or subdomain ‘www’ also points there. I have blurred the actual IP here.

What’s that? Yes, ‘www’ is technically a subdomain. Without it, the name is called the ‘bare or naked domain.’ While a site doesn’t need the www subdomain prefix, there are good reasons to have it there.

Which brings us to the more common conception of a subdomain, which is anything other than ‘www’ set as the subdomain prefix. ‘App’ for example.

In web2, there are some compelling reasons to create subdomains. For example, streeturls.com, a service we pioneered 15 years ago, creates a subdomain for every property address.

While that is an example of subdomaining right down to the street address, the popular service Craigslist subdomains content by major community, e.g. /search/hsw, for housing wanted, is different from seattle.craigslist(.)org than from tacoma.craigslist.

So if you are thinking of subdomains as folders, well, you are not far off. At the end of the day, blog.sitename is not very different from a functional standpoint than sitename.tld/blog. Subdomain/subfolder.

That is in web2. Now let’s talk web3, where things get really interesting. As we said, one of the many things you can do with an ENS name/subdomain name is point it to content, like a website host.

That is just the tip of the iceberg, however. An ENS name is an NFT, wrapped in a powerful contract which can be coded against called the ENS name-wrapper. It has many attributes, not just a pointer to host content.

At this time, if you create an ENS subdomain, the subdomain is not represented as an NFT. It is not wrapped in the same smart contract as the TLD ENS name is. It just sort of sits there.

Enter the ENS subdomain name-wrapper, or sub-wrapper for short. This pending update to the ENS contract code will allow ENS subdomain names to be represented as token//NFT, with most of the advantages of the parent.

Why does this matter, and how will it be used? For the first time, it will effectively give the holder of a name the abiity to give another person a subdomain version, complete with powerful capabilities and controls.

Quirky and fun uses are already cropping up – but they are largely just tests for now between individuals tinkering with the tech. While they function as names for wallets – there are limitations.

But the owner of myiq.eth, for example, could issue me 127.myiq.eth (no clue, just like the number). Or the owner of get bent.eth could send me michael.getbent.eth.

With the advent of the sub-wrapper update though – where you will be able to gift or lease subdomains effectvely at scale – well, the business opportunities are staggering.

So opensea, which just secured opensea.eth, could give or rent out my.opensea.eth to some lucky user. Someone else could have your.opensea, and hot.opensea, etc etc.

The recipient of the subdomain name can have the name as long as they have the lease, just like the TLD. The only downside is if the TLD itself expires.

How will businesses use this technology at scale? We have seen some great suggestions and thoughts out there – here are a few.

Business will use subdomains like client retention and outreach tools. Ever fill out a warranty card for a product? That’s all about client connection and retention of course… same concept will apply here.

Business will issue subdomains like coupon cards – for every x purchase your subdomain identity will get credit towards a goal. I usually get 90%, then lose the card… no more!

Business will issue subdomains to track irl physical assets. Bought a new vehicle? Don’t be surprised if you are gifted VIN#.somecarbrand/dealer.eth – where every service will accrue as a record.

Business will create social media engagement by gifting subdomain names – not my favorite brand, but when will budweiser give out beer.eth subdomains?