NFT domains are an exciting piece of puzzle developed in the decentralized world. They are here not only to change the way we think about domains and online real estate, but also to add a new layer of transparency, functionality, and security.
In this article, we introduce and explain the features and foundation of blockchain domains, how they work and how ordinary users can start accessing the benefits even before the decentralized web hits the mainstream.
What are NFT domains?
The Internet evolves due the new requirements faced very often and, as the result, traditional domains turn to become ineffective and more practical domains are required accordingly. Blockchains, as specific type of database, are used to store data in blocks that are chained together. Different types of information can be stored on a blockchain, however the most common seems to be ledger for transactions. Very recently, a new idea has been developed regarding blockchain domains. The history of NFT domains could be traced back to the first cryptocurrency.
Simply saying, a blockchain domain is a collection of complex smart contracts that make it operational. Like cryptocurrencies, blockchain domains represent a new class of assets that belong to the owner, not to a third party or central authority. Owner have private access to their domains, so a domain would entirely be controlled only by the owner. Namecoin is one of the first crypto platforms which was developed to allow users register their own domain names such as Bitcoin. However, it was found that the functionality of this platform was limited in the pre-smart contract world.
An interesting usage of blockchain protocols is NFT domain names. A blockchain domain system offer the opportunity to domain owners to control their domains using private keys. Unlike traditional domain names, no organization supervises these domains. Blockchain domain names are permanently created into a public registry, where no third party can purge, modify, or censor them. However, accessing blockchain domain names requires special software, for example Ethereum network.
They allow not only the easy trading of NFTs but also customizable domain names built on blockchain. There has been a sudden rise in consumer and investor interest in blockchain domain names.
Companies such as Unstoppable Domains and protocols like Namecoin are developed to allow users to both purchase blockchain domains, and even enter domain namespaces. If a user chooses to purchase a domain namespace, it allows users to rent or sell individual domain NFTs later. For example, if a user own “.crypto” domains on a specific blockchain protocol, she is able to rent or sell individual “name.crypto” domains, which can be a unique opportunity for early investors.
For example, .eth domain names, had big sales recently. One month ago art.eth sold for 30.9 ETH, which was little more than ten thousand dollars. Meanwhile, sex.crypto was sold for 230 ETH which made it the biggest sale for a blockchain domain ever.
A more practical choice, on the other hand, seems to be purchasing the already made domain names. Many domain names are already taken and the early investors, for sure, can take better advantages with investing some money on getting a domain of favorite and in a very short time trade it for a better price. Remember that there will be no trouble making a domain name if you purchase the blockchain name domains that are already made. It seems faster and easier, meanwhile more profitable! Here, we advise the investors to check for domain names on sale to get faster into the market and gain a good fortune with their investment.
Furthermore, NFT domain names can link to cryptocurrency wallets instead of websites. Asking for payments via “yourname.crypto” is more convenient and easier to remember than “1NVWiyvVLAuCoxzQ6Ujy4UDpkgRwe8VPwW.”
Although some of these domains are not as widespread as traditional ones, they are quite popular among cryptocurrency enthusiasts. Just imagine, the “exchange.eth” domain was sold for 6,660 Ethers, which is equivalent to $1,241,424 as of today.
All these may bring more questions to mind: Why are these domains needed at all? What problems will they solve in the future? Let’s answer them.
Why are blockchain domains created?
Compared to traditional wallet addresses, blockchain domains are more convenient to use for transactions. If a person wants to transfer cryptocurrency funds, they just need to enter a wallet-related domain name and send cryptocurrency to it directly.
The second advantage is that NFT domains can’t be blocked or censored. Blockchain-based domains legally belong to their owners. The domain is your asset. As the sole owner, you have complete control over it.
For example, Alibaba, a Chinese retailer, aims to introduce a domain name management system on top of its own blockchain. This system will be used to register a unified domain name (UBCDN) within the blockchain for convenient data management and to facilitate the process of filing complaints on rights violation.
How do NFT domains work?
Blockchain domains aren’t stored on a server. They are kept in the public registry, on publicly accessible blockchains which makes it possible for anyone to look at the records, providing an impressive level of openness and transparency. Furthermore, users can benefit from enhanced security as each user holds the permissions to make updates to their domain name, which help to protect servers against hackers or domain names be stolen.
How are blockchain domains different from regular domains?
There are several differences between blockchain domains and regular, traditional ones. As already said, blockchain domains are more open and secure due to the transparent and decentralized nature of blockchain technology. Moreover, NFT domains present more functionality for end users. It’s possible to build programs on top of your domain and run them like apps, look for the records of existing domains, and build software to interact with them.
Consider that traditional domains are generally one dimensional and offer a few narrow purposes, while blockchain domains come with much more scope for interaction and connections.
Blockchain domain extentions, and the most expensive one
A domain extension is the combination of characters following the period in a web address. For example, in GoDaddy.com, the .com is the domain extension of the GoDaddy domain name. blockchain domains also get extensions related to the field they are developed for. Protocols like Unstoppable Domains are known to associate unique domain names with Ethereum addresses. The domain names exist as NFTs. They are separate assets that can be traded on secondary NFT marketplaces like OpenSea. When a domain NFT is supported with an Ethereum wallet, they can be used as human-readable addresses within the wallet’s interface. Therefore, complicated blockchain addresses are replaced with domain names. Domain names are designed to make it easier to send ETH and Ethereum tokens between wallets.
Recently, Unstopable Domains, a company building blockchain domain names, has introduced 10 extensions including .crypto, .nft, .wallet, .coin, .bitcoin, .dao, .blockchain, .888, .x, and .zil. Unstoppable Domains launched new extensions encourage adoption of the new extensions, where the most popular NFT domains registered are .crypto ($108,000), .wallet ($85,000), and .nft ($77,000). In March 2021, Unstoppable Domains announced that the most expensive blockchain domain NFT ever sold “win.crypto” was purchased on the platform for US$100,000. The NFTs trade on marketplace OpenSea sold the domain “sex.crypto” in 2020 for a record 230 ether (ETH), or approximately $90,000 at the time. That same amount of ETH is now worth more than $600,000.
What are the advantages to use a blockchain domain?
Beside the benefits already discussed, such as openness, security, and increased functionality, there are more certain reasons to use a blockchain domain today.
The major reason is that a blockchain domain has the ability to send cryptocurrency more easily. Blockchain domains are designed to work as a naming registry for crypto addresses. This makes it more user friendly to send and receive crypto.
Blockchain domains could also be used to build decentralized websites. For example, you may point your blockchain domain name to a website on a peer-to-peer hosting platform like IPFS. Further, you can connect domains to social media accounts for identification and set up email and chat protocols associated with the given domain.
Where to buy NFT domain?
Blockchain domains are placed on the decentralized web. Crypto users and blockchain enthusiasts are basically the main users of NFT domains as they wish to begin with the technology and access its benefits and share crypto. Lots of people also use blockchain domains to learn about the space and get involved in decentralized technology in a more hands-on way.
You may get a domain with Unstoppable Domains while there is no renewal fee considered, unlike the traditional ones. Choose your domain, pay for it and it is yours forever.
How to buy NFT domain on unstoppabledomains.com?
Unstoppable Domains makes it easy to register a blockchain domain. Just go to the website, type the domain you want into the search bar to see if it is available, and follow the steps to register it.
In this video you can see instructions of register an NFT domain and pay with Etherium.
After registering a domain you have to mint this domain. You can mint your NFT domain on Polygon for free at this moment. Checkout this video:
How to run a website on your NFT Domain?
Actually at this moment you will need to use a mirroring service, a browser extension or a browser that supports NFT domains to be able to view a NFT website.
Major search engines do not currently index NFT domain websites. For now, you will be able to search for them at unstoppabledomains.com, on partner applications that integrate our search bar, or on blockchain apps that index NFT domain websites.
With ready templates
There are more than 5 ready to use templates that you can start editing and making your page right after entering your domain details.
Watch this video about steps of setting up a template to show on your NFT domain:
IPFS is what BitTorrent is to music and video sharing, but for websites or other datasets. IPFS (InterPlanetary File System) is essentially a network protocol and a peer-to-peer network to “share data” and for blockchain domains this is normally regarded as websites.
Watch this video about steps of running your website data on your NFT domain:
Also you can easily host NFT gallery websites to show off your collectibles to the world.
NFT domains represent a major, exciting step toward a more decentralized online world. Experts believe in their potential to change the internet and deliver serious benefits to ordinary users since they offer better protection and also facilities for crypto lovers.