Bankless: How to Use the Multi-Chain Domain Service Tool Clusters for Cross-Chain Identity Management?
Clusters are expected to solve issues such as address fragmentation, wallet management complexity, and domain hijacking.Title: Set Your Cross-Chain Identity with Clusters
Author: William M. Peaster; Bankless
Compiled by: Joyce, BlockBeats
Editor's Note:
The convenience of identity management during cross-chain interactions is a common concern for both users and developers. To address this application scenario, on February 1, the Ethereum infrastructure Delegate and the cross-chain interoperability protocol LayerZero jointly launched the multi-chain domain service Clusters. Clusters aims to solve issues such as address fragmentation, wallet management complexity, and domain name squatting. Clusters will support EVM networks, Solana, and Bitcoin to ensure users maintain the same identity across multiple chains, simplifying user interactions with DApps.
Clusters: Simplifying Cross-Chain Interactions
If you are excited about the future of cross-chain but find it frustrating to determine which wallet belongs to your friends on each network, then Clusters might be the service you need. Clusters is a new type of cross-chain naming service co-developed by the Delegate and LayerZero teams, allowing users to bid for and register wallet names that are valid on both Ethereum and non-Ethereum chains.
The slogan of this service is: "All chains, all wallets, one name." This means that no matter which blockchain network your friends are on, you can use the same name to identify their wallets, simplifying the complexity of cross-chain interactions.
How is it Different from ENS?
Clusters operates in a similar space as the Ethereum Name Service (ENS), as both protocols provide human-readable blockchain domain names that support multiple chains. The fundamental difference between these projects lies in their architecture.
ENS uses a custom multi-chain address resolution system within its protocol, allowing ENS names to record and point to addresses on different blockchains. In contrast, Clusters is the first application based on LayerZero's new V2 version, which is an interoperability protocol designed to enable projects to operate seamlessly and securely across different blockchains.
How Does Clusters Prevent Domain Name Squatting?
To reduce domain name squatting, Clusters employs a demand-driven periodic pricing mechanism, a concept previously discussed by Vitalik Buterin. Unlike ENS, which relies on fixed annual fees (for example, a five-character domain name costs $5 per year), Clusters dynamically adjusts the annual fees for domain names based on market demand.
This mechanism allows anyone to bid on a domain name, and if bidding continues for a period, the annual fee will be determined based on a certain percentage of this floating valuation. Thus, domain name owners must either accept a high price for sale or pay a higher fee, thereby reducing the occurrence of squatting.
User Guide
On February 1, 2024, Clusters launched its beta version by introducing its auction system.
At this stage, participants can start bidding on highly sought-after names. The highest bidder will secure the desired domain name, ensuring transparency. Clusters is also developing a refund system for unsuccessful bidders, allowing those who do not win to reclaim their funds.
Additionally, Clusters has created an enhanced multiplier system to complement its auctions. In other words, owning the corresponding ENS domain name, having the related Twitter username, and being active on social media can significantly boost your bids, providing a competitive advantage for your target name.
After the beta phase, Clusters plans to refine its auction mechanism and transition to a fully open first-come, first-served (FCFS) registration system. This shift is expected to occur in the coming months.
Before you start using Clusters, you need to prepare some ETH to bid on your chosen name. Once your funds are ready, you can follow these steps:
Go to clusters.xyz and connect your wallet. Click on "Create Bid" at the top of the page and enter the Cluster name you wish to bid on. In the subsequent interface, enter your desired bid amount—so far, many bids have ranged from 0.02 to 0.06 ETH.
Click "Claim" and confirm the deposit transaction through your wallet. Start customizing your Cluster by importing your personal avatar from Twitter and adding other wallets, as shown below:
- Once you finish customizing, click "Complete Setup" to finalize the configuration process. At this point, you can go to the "My Profile" tab on the Clusters website to track your bidding status, edit your wallet information, or copy your customized referral link to share on social media for enhanced multipliers.
If any of your bids ultimately do not win, please note that Clusters' refund system will be launched in the coming weeks.
Clusters aims to create a secure and user-friendly cross-chain identity management system. By integrating auctions, demand-driven pricing strategies, and enhanced multipliers, Clusters is committed to bridging the gap between different blockchains in a simplified manner. In the future, the project will expand to support more chains, such as those in the Cosmos ecosystem, so stay tuned for its developments.
