Everything You Need to Know About Web3 Blockchain Domain Names
Posted on 2023-01-12 · 9 min read
Blockchain domain names are a relatively new technology just beginning to be explored. Similar to when the internet was first introduced, there is a race among brands to take advantage of this new technology and register blockchain domains. While some companies are eager to get in on the action, others are taking their time to evaluate the space. This is comparable to when companies competed to register .com domains a few years ago.
Blockchain domains have a few different names which align themselves with the different functions that they perform. These names include various terms such as digital wallet, web3 wallet and digital I.D., because a web3 domain’s three main functions are to serve as a domain, a wallet address, and a digital I.D.
- Website domains: Similar to traditional website domains, individuals can create a website that points to their blockchain domain. Many Web3-native browsers including Brave and Opera Mini already allow direct access to websites with a blockchain domain address.
- Wallet Address: Blockchain domains provides an improved user experience for cryptocurrency users. It allows them to use a human-readable address to send and receive cryptocurrency transactions, instead of cryptographic addresses.
- Digital ID: Another impressive feature of Web3 domains is that they can serve as a digital identity for the user. It is not uncommon for users to display their Web3 domains as social media profile names or use it as a unique identifier for access to decentralized applications (dApps) or Web3 gaming platforms.
Blockchain Domain Name System (BDNS)
Blockchain domains are a new way of navigating the web. Instead of relying on a centralized domain name system (DNS) like Web2, blockchain domains are built on a decentralized, public ledger system (blockchain). This allows for faster, smoother processes and transactions. They are registered on a particular blockchain, known as a registrar, responsible for managing the domain names. This system allows users to easily navigate and find the websites they need without worrying about the complexities of DNS.
BDNS works by mapping unique digital wallet addresses to memorable domains. This allows users to send and receive digital assets more easily and securely than typing out long wallet addresses. Instead of sending digital assets to a complicated string of characters, users can now send to a memorable phrase. This provides a degree of convenience and security that was not previously available. Furthermore, these blockchain domains can also enable new types of functionality, such as creating decentralized applications, which allow users to interact with web applications through a blockchain domain.
The Demand for Blockchain Domain Names
Blockchain domain names are a revolutionary new way to access the internet. These domain names are stored on a decentralized ledger, meaning that no single entity owns or controls them, allowing for greater privacy, security, and censorship resistance. Blockchain domain names provide additional data storage, transfer, and authentication features.
With this new technology, users can create secure and unique domains that are impossible to delete or modify without permission. Here are three reasons reasons blockchain domain names interest many individuals:
- Blockchain domains appeal to those who want to register a website because there is no worldwide standardization of rules.
- Web3 domain names are unique digital assets registered on a blockchain and come with a certificate of ownership. These assets are easily tradable on NFT Marketplaces, creating a secure and reliable way to buy and sell digital assets.
- Blockchain domain names provide a unique way for people to identify themselves online. They can be used as a display name for social media, a digital wallet address, or a traditional website landing page. They are a secure and reliable way to set up a digital presence and are becoming increasingly popular in the online community.
Problems with Cybersquatting and Brand Impersonation
Many blockchain domain names are being registered without regard for the legitimate rights of trademark owners. Cybersquatting is one of the most common practices where someone registers a blockchain domain name associated with a well-known brand, organization, or individual without their permission. They then wait until the trademark owners request to buy the domain name at a premium price listed on an NFT Marketplace.
Web3 domains are a new technology that can connect with customers differently. However, they can also be used by scammers and impersonators to trick people into giving up their personal information or money. Brands need to be aware of this risk and take steps to protect their image and customers from being victims of fraud.
Using blockchain domain names is a great way to create a unique web presence and build customer trust. However, it is important to know the risks associated with cybersquatting and brand impersonation. There are regulations and laws in place to protect brands from these malicious practices, and it is important to follow these regulations to protect your brand. Additionally, it is important to have a strategy in place to monitor and respond to any potential issues that may arise.
Eternal Digital Assets is the premier platform to trade Web3 domain names, where you can browse, mint, buy, sell, and rent Web3 domains on the EDA platform. Powered by Polygon, the Eternal Digital Asset marketplace enables instant and cheap trading of blockchain domains. Secure your digital identity with a blockchain domain name and mint your domain as an NFT that you truly own! Start today!