Heard people talking about Web3 Domains or blockchain domains but don’t really know what they are? In this blog we will simply define and explain it.
A Simple Definition Of A Web3 Domain
A Web3 domain is like a traditional internet domain except it’s on the blockchain. They are sometimes referred to as blockchain domains. They are unique Web3 addresses that represent users’ wallets and make it easier to send and receive cryptocurrencies from other users.
The Backstory Of Domain Names
The internet you use every day is full of domain names – directing you to the places you visit on the internet. You might want to visit the website of Tesla in the US and if you didn’t have a particular page bookmarked, you might know you could find it by typing in “www.tesla.com” into your browser. It’s much easier to remember than Tesla’s IP address, 23.219.12.88. DNS (Domain Name System) was introduced to make the internet and its difficult-to-remember IP addresses more user friendly. Domain names are unique and tied to just one website at any one time. One of the lesser-known aspects of domain names is the role played by ICANN, the Internet Corporation for Assigned Names and Numbers. It’s a non-profit organization that is responsible for the entire DNS. That makes it vulnerable to all the problems associated with a central authority including security, fraud and a monopoly that is counter-productive to a fair and free marketplace. Web3 domains change all of that.
The Power Of Web3 Domains
Web3 domains are characterized by all the features of the blockchain. They are decentralized which makes them much harder to hack because there is no single point of failure. Web3 domains resemble traditional domain names by using memorable words. They make it easier to identify addresses on the blockchain rather than a seemingly meaningless string of letters and numerals. This is even more important on Web3 because wallet addresses tend to look something like this: 4bdcd9873bc09d373aab092fef87792. Enter one incorrect digit and you could lose your funds in a crypto transfer. But rather than having to remember a cumbersome domain name like that, all you need to do is recall something like “jessies.crypto”. Other Web3 domain name extensions include .dao, .nft, .blockchain. They are all tied to specific wallets on the blockchain with the keys to those domains stored inside the wallets as an NFT for added security. It means that each Web3 domain name is actually an NFT which can be traded at an NFT marketplace.
Benefits Of Web3 Domain Names
Web3 addresses come with all the benefits of the blockchain that traditional domains lack.
Personalized – domains can be owned by individuals or private consortiums with names that represent them or their brand.
Economy – with no middlemen, it is much cheaper to run a Web3 domain while some platforms like Butterfly and Cortex are absolutely free.
Privacy – users can register a domain anonymously keeping their sensitive personal details out of reach.
Security – domains cannot be vandalized or removed making them ideal for hosting sensitive data or applications which may run into challenges on the traditional web. They are also more resistant to hacking because they contain no single point of failure.
Web3 Domain Name Providers
While Web3 is decentralized by nature, the blockchain still needs service providers or “registrars” to facilitate these domains. Unlike the traditional web, users have more than one option at their disposal. Some of the leading Web3 domain name providers are:
Ethereum Name Service (ENS) – ENS supplies all domain names for the world’s leading transactional blockchain with an .eth address. When a new domain address is registered, a new ERD-721 NFT token is minted. An annual registration fee is payable along with gas fees because it is on the Ethereum blockchain.
Unstoppable Domains (Ziliqa) – Ziliqa uses the popular .zil and .crypto domains. They charge a one-time payment for the address. Users can send and receive a wide variety of cryptocurrencies to any wallet. Domains are accessible from any browser that has DNS settings updated.
Namecoin (BTC) – Namecoin was originally forked from the Bitcoin blockchain and uses two different technologies. NameID registers an address with an authentication protocol known as OpenID. While Dot-Bit-DNS is like a directory for internet domains. Users are not at risk of censorship and cannot be asked to take down a website unlike sites on the traditional web.
Want To Know More About Web3 Domains?
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