What is a Web3 Domain Name?
Posted on 2022-10-21 · 7 min read
Domain names date almost as far back as the internet. They provide a unique identifier for personal or organizational websites, making these properties easier for internet users to access.
We are at the dawn of a new Internet era — Web3. In this new era, domain names are a lot more powerful. They are secure, immutable, and have the potential to drive global cryptocurrency adoption.
This Web3 domain name guide breaks down the concept and makes it easier for readers to decide whether or not it is worth buying a Web3 domain. Let’s dive right in.
What is a Web3 Domain Name?
Web3 domain names are blockchain-based identifiers linked to a user’s cryptocurrency wallet address. It allows users to replace long-stringed addresses like 0x3c496df419762533607f30bb2143aff77bebc36a with something as simple as bob.crypto.
Web3 domain names use a domain name system (DNS) similar to the traditional domain industry. However, the difference is that the DNS record is stored on the blockchain instead of on centralized servers.
The domain issuer maintains a blockchain-based record of user identities, ensuring that no two users can use the same identifier. This means that users get an error message if they try registering an address or domain name already registered by another user.
Web3 domain names are also unique since users can mint them as non-fungible tokens (NFTs). In effect, users hold a digital asset representing their domain. Furthermore, users can buy, sell, lease, or auction Web3 domains on platforms like the upcoming Eternal Digital Assets marketplace.
Unique Features of Web3 Domains
- Secure: Web3 domains use blockchain technology to provide a much higher level of security than traditional domains. Your site is much less likely to be hacked or taken down by malicious actors.
- More Resilient: Web3 domains are by nature censorship-resistant. Hence, your site will be accessible even in countries with strict internet censorship laws.
- Trustless: A decentralized network of computers underpins NFT domains, which makes them much less likely to be subject to fraud or tampering. This makes them a more trustworthy option for businesses and individuals alike.
- Cheaper to own: Although some NFT domains are expensive, most are cheaper than traditional domains. This makes them a more affordable option for businesses and individuals. There are usually no renewable fees on most Web3 domains, lowering the cost of holding them.
What Can I Do With a Web3 Domain?
- Receive cryptocurrencies: Instead of hard-to-read addresses, you can receive cryptocurrencies using your Web3 domain. Many domain providers allow you to connect your Web3 domain name to receive coins on various networks, including Ethereum, Bitcoin, Polygon, XRP, Litecoin, and some EVM-compatible networks.
- Build a Web3 website: You can build a website on your Web3 domain, enabling users to find your personal space by simply typing your address on their browser. Browsers like Opera and Brave already allow support for visiting Web3 domain properties.
- Hold and trade them: Savvy investors acquire the most hot-potential domains with the hope of selling them at a higher price. Public perception is that the Web3 industry is still at its rudimentary stage with immense growth opportunities ahead.
Web3 Domain Providers
Web3 domain providers are companies that allow users to create and manage these domain names. Below is a list of the most popular providers.
- Unstoppable Domains
- Ethereum Name Service (ENS)
Should I Own a Web3 domain?
The choice is yours! Web3 domains offer many advantages over traditional domains. Owning a Web3 domain makes it easier to send and receive cryptocurrencies. Users can also build websites and profit from the speculative value of these assets. If you desire these benefits, you should probably own a Web3 domain.
The world of blockchain and Web3 domains is still in its infancy. Many users will eventually embrace Web3 domains, especially as cryptocurrency adoption enters the mainstream phase.
Ready to get your first Web3 domain? Get an exclusive 10% discount via our partner Unstoppable Domains