Posted on 2023-08-25 · 9 min read
If you’re reading this, chances are you’re already familiar with the concept of a Web3 domain. For those who aren’t, a Web3 domain is simply an address that uses the new Web3 standard, which allows decentralized applications (dApps) to be built on top of it.
Web3 is the next evolution of the internet, where data is stored on a decentralized network instead of centrally on servers. This has a lot of advantages, including improved security, privacy, and even censorship resistance.
This article discusses what a Web3 domain is. It also presents some powerful reasons you need to buy a Web3 domain now.
A Web3 domain is a new way to manage websites, cryptocurrency addresses, and other web applications. It is a distributed, decentralized platform that allows anyone to create and manage their web domain.
Web3 domains are built on Ethereum, Polygon, and other blockchain networks. They offer a more user-friendly and secure way to have a Web3 digital identity and manage web applications.
With Web3 Domains, there is no need for a central authority to manage your domain. Instead, your domain is governed by a smart contract on the underlying blockchain network. This allows for more secure and decentralized access to your domain.
In this emerging new world where users interact with decentralized applications, a Web3 domain is perfect for creating your digital identity. Instead of using cryptic addresses, a Web3 domain allows you to create a simple identifier such as bob.crypto, which you can use for supported applications.
For example, you can use this address to receive cryptocurrencies and also use them as your profile name across social media platforms. This way, you can maintain a clear identity across all applications you interact with in Web3.
Unlike traditional domains typically stored with the domain hosting company, Web3 domains support decentralized ownership. Firstly, ownership data is stored on the blockchain making the record immutable and transparent.
Secondly, users can mint their Web3 domain as a non-fungible token (NFT). They truly own the domain as it is stored on their Web3 wallet. Furthermore, they can freely transfer domain ownership without waiting for the approval of a third-party domain company. These benefits make Web3 domains attractive for website owners.
Similar to Web2 domains, you can set up your next online business using a website powered by a Web3 domain. For instance, you can build a Web3 static website, a dynamic website, or even a video website. Leading web browsers Opera and Brave already support direct access to Web3 domains.
You can also acquire a Web3 domain as part of your company’s digital strategy. Famous American beer brand Budweiser recently purchased the beer.eth domain for a reported value of 30 ETH (over $90,000) to boost its appeal to the Web3 community.
Owning a Web3 domain can lead to similar outcomes for your business. Better still, it can catalyze a boom in your next business idea.
The Web3 domain industry is still in its infancy. Yet, many Web3 domains are already as expensive as their older counterparts. Trading volume has increased significantly in recent years. This presents a unique opportunity for investors to identify and acquire Web3 domains that are likely to grow in value.
Furthermore, the upcoming Web3 Onboarding marketplace is set to unlock even more value for Web3 domains. It will allow investors to lease their most valuable domains and make passive income without giving up ownership of these assets. The W3O platform will also feature building functionality, allowing Web3 domain holders to launch websites in record time.
Over time, the investment value of Web3 domains will likely soar as Web2 domains did in the early days of the internet. Investors who size up the opportunity and position their portfolio accordingly will likely reap sizable returns.
Another key benefit of Web3 domains is that they are cheaper to host when compared to traditional web hosting options. Users only have to pay a one-time fee to mint or create their domain and do not incur any hosting fees.
This is because Web3 domains are powered by the underlying blockchain network, which is much cheaper than traditional web hosting infrastructure. Once created, users can immediately set up a website on their domain without paying any hosting fee.
Meanwhile, a range of Web3 registrars, including our partners at Freename.io, do not require users to pay a domain renewal fee. Users only pay a one-time fee to acquire domains and then own them for life. If you are looking for a more affordable web hosting option, consider a Web3 domain.
Web3 domains are, by nature, easy to use. The domain names are usually short and easy to remember compared to cryptocurrency addresses. Also, the fact that it’s an emerging field means that some immensely valuable domain names are still available.
If Web3 is the future of the internet, as many experts agree, then Web3 domains are only set to become more valuable as adoption increases.
Owning a Web3 domain is an opportunity to key into such potential growth and contribute positively to the next wave of the internet.