Managing a domain via an Ethereum account is not scalable and leads to a central point of failure. Using DIDs as controllers of ENS domains could allow for management privileges to be shared amongst a set of trusted administrators and increases safety because DIDs in general have better security models than a public-private key pair.
The 3ID method developed by Ceramic Network supports key rotation and will soon support ocaps (object capabilities) which could unlock much more scalable management of ENS domains and subdomains, particularly when it comes to programmatically generating these, for example through a SaaS type platform.
To get more concrete, imagine I have a decentralized web hosting platform that helps users store web pages on a peer to peer network via content addressing (e.g. Ceramic/IPFS). As soon as a user purchases a subdomain through my NFT contract on Ethereum, I want to programmatically issue them that subdomain through ENS. In this scenario my servers could have DIDs that are securely managed and added to an allowlist under my ENS domain which gives them the ability to create subdomains, adding the paying user as a controller to that subdomain.
So… wdyt?
References:
W3C DIDs
3ID DID Method (CIP-79)