Posted on 2023-08-18 · 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.
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 Web3 Onboarding marketplace.
Web3 domain providers are companies that allow users to create and manage these domain names. Below is a list of the most popular providers.
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