TEMPE, Ariz. - GoDaddy Inc. (NYSE: NYSE:GDDY), a prominent domain registration and web hosting company, has announced a partnership with Ethereum Name Service (ENS) to allow users to link their domain names with the Ethereum blockchain at no extra cost. This collaboration is set to bridge traditional Domain Name System (DNS) with the innovative blockchain technology, enhancing the user experience for domain owners.
DNS, the system that translates human-readable website names into IP addresses, is now being integrated with ENS, which turns complex Ethereum wallet addresses into simpler, readable names. This move combines the security and reliability of GoDaddy with the advanced blockchain infrastructure of ENS.
Paul Nicks, GoDaddy's president of domains, expressed excitement about the partnership, saying "As a long-time domain industry steward, we are always looking for innovative enhancements that benefit our customers." The collaboration with ENS is expected to offer domain name users the chance to delve into the realm of blockchain without the need for technical know-how or incurring additional expenses.
ENS has introduced new smart contracts that facilitate the resolution process of domain names at the DNS top-level domain (TLD) level, allowing for a cost-free method of verification of DNS records. This development is aimed at reducing the barriers that have previously made the transition to ENS challenging, such as high gas fees associated with blockchain transactions.
Nick Johnson, founder of ENS, emphasized the significance of this integration in the mission to build a more secure, decentralized, and user-friendly internet. "ENS, much like DNS, is a public good and a core part of the internet infrastructure. By pairing up ENS names and GoDaddy domains, we will streamline the way users interact with web domains, blending the familiarity of the DNS with the potential of blockchain technology," he said.
The initiative reflects GoDaddy's ongoing efforts to support entrepreneurs in managing their online presence and ENS's goal to establish a neutral naming protocol for the internet. This partnership is expected to streamline interactions with web domains and expand the potential of blockchain technology for users.
The information in this article is based on a press release.
InvestingPro Insights
In light of GoDaddy Inc.'s (NYSE: GDDY) recent collaboration with Ethereum Name Service, investors may find the company's financial health and market performance relevant to assess the potential impact of such strategic partnerships. GoDaddy's market capitalization stands robust at $15.28 billion, reflecting its significant presence in the domain registration and web hosting industry. However, the company trades at a high Price-to-Earnings (P/E) ratio of 46, indicating a premium valuation relative to its current earnings. This is further emphasized by an adjusted P/E ratio of 38.21 for the last twelve months as of Q3 2023. Meanwhile, the company's revenue growth has been modest, registering a 3.02% increase over the last twelve months as of Q3 2023.
From an operational perspective, GoDaddy's gross profit margin is strong at 63.02%, showcasing its ability to maintain profitability in its core operations. An InvestingPro Tip suggests that management has been aggressively buying back shares, which could signal confidence in the company's future prospects and a commitment to enhancing shareholder value. Additionally, the company's high shareholder yield is another point of interest for investors looking for companies that prioritize returning value.
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