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NFT domains: the building blocks of Web 3.0?
Summary: A brief introduction of NFT domain names, their applications, use cases, benefits, and reasons as to why the transition towards a decentralized web 3.0 running on NFT domain name websites is inevitable. Additionally a brief walkthrough of various NFT domain name market platforms available as of today.
What are NFT domain names?
Domain names have always been one of the most valuable digital assets in the history of the internet. They have been sold for ridiculous prices, such as business.com being sold for a whopping $345 million and Lasvegas.com being sold for over $90 million in 2005.(1)
These prices are unexplainable even before the realization that the companies that paid so much for them, don’t even own them. They have basically “rented” them out from a domain name registrar. This has been done time and time again with conventional domain names and eventually gave way to the processing of a technology that would allow you to own a domain name rather than having to rent it out from a registrar.
NFT domain names are exactly that. Blockchain-based domain names are embedded with information about the individual that owns them as well as anything that is built on it, such as a website. They can be stored in a wallet and can also be used as a gateway to easy cryptocurrency trading.
Unlike normal domain names, NFT domain names carry special extensions. Different NFT domain name marketplace platforms support different extensions of NFT domains. The three top players in the NFT domain namespace provide the following extensions given below.
Unstoppabledomains.com supports the following NFT domain extensions.
Quik.com supports the following NFT domain extensions given below.
While ens domains have the native extension as .eth.
Now, these extensions are released, minted, and managed by major players in the NFT domain name market such as unstoppable domains, quik.com, and ens. Contrary to the conventional domain names that are officially released and managed by ICANN. This illustrates an explanation for why NFT domain names are not accessible through various normal browsers. You will either need to have a special browser or a plugin. This is due to the domain names being not registered in the DNS or the domain name system.(2)
The Three big markets of NFT domain names
Quik.com, unstoppabledomains.com, and ens.domains are comparatively the three big names in the blockchain domain name market. They specialize in the minting, sale, and purchase of NFT domain names. You can mint and purchase an NFT domain name for yourself for upwards of $5.
With the idea of owning domain names over renting them becoming popular, there is a need for platforms that facilitate the sale and purchase of NFT domain names.
In comparison, Quik.com and unstoppable domains both provide different but a similar number of different NFT domain name extensions. You can also mint a large number of NFT domain names at the same time on all of the aforementioned platforms.
Furthermore, Quik.com ventures one step ahead and provides P2P solutions for the sale of NFT domain names between consumers. Quik.com has a robust search mechanism and a simple royalty scheme for the original owners of the NFT domain names. (3)
UnstoppableDomains on the other hand is another marketplace in the NFT domain names that supports a very similar but varied list of NFT domain name extensions. It does not have the option for P2P trading of NFT domain names as of now. It does have options for reserving and holding unminted or special NFT domain names. A lot of which are reserved for major names, brands and organisations. These also span over many NFT domain name extensions. (4)
How secure are NFT domain names?
In its essence, NFT domain names are extremely secure. They are assets on the particular blockchain which allows them to be unique. You become the sole owner and admin of your NFT domain name and this right cannot be seized by any third party whatsoever.
Additionally, NFT domain names support and allow the building and functioning of decentralised websites which are non-traceable and cannot be taken down. They can also be transferred from your name to another holder without need for permission from anyone.
Even though the technology in itself is extremely safe and secure, you need to be careful with storing your NFT domain names. They can be stored in a crypto wallet just like any other NFT or cryptocurrency. You can store them on your offline or online wallets. Doing this adds to the pre-existing security of your NFT domain name and disallows anyone trying to fish out the keys to your digital assets.
Another standard security practice is to check the domain name for spelling mistakes to avoid getting duped by scammers into buying fake domains. Additionally, never share your keystore file to anyone and never share confidential information on a public platform.
Even though NFT domain names are decentralized and extremely secure, you need to be careful to avoid being scammed. (5)
Use cases of NFT domain names
By owning an NFT domain name you will be able to build your own decentralized website on web 3.0. There are multiple benefits of owning a decentralized website. They are completely untraceable across the internet. They are completely private and cannot be conditioned in a certain way by a third-party overseer. They are completely immune to censorship so you will be able to use Web 3.0 in a free manner.
The possibilities of building applications on top of the decentralized websites are endless and the domain of content creation on the Web 3.0 will surely be free, decentralized, and fairly untapped if you start off early.
NFT domain names can be set up to act as your wallet addresses the same way the conventional domain name acts as an alternative to the IP address of the website. This allows easy and hassle-free transactions between any two wallets. It also eliminates the fear of copying the wrong address since wallet addresses are so long and cumbersome. This alternative will help provide a simple way to provide ease in making transactions on the blockchain in between wallets.
NFT domain names allow artists to publish and harness the full potential of their music without having to take aid from music labels. They can Independently produce their music and publish it for consumers with complete ownership of the profits and benefits. (6)
Benefits of NFT domain names
There are many benefits of owning an NFT domain name. A few are as follows
Unlike conventional domain names, NFT domain names need not be rented out from a registrar. They can be minted and bought. This makes you the owner of the domain and now you need not pay any renewal fee or any sort of extra compensation. This makes it a formidable digital asset that will only increase in value in the future
Multiple use cases
NFT domain names have a ton of applications. From building a decentralised website to making it your own personal crypto wallet address for easy transactions.
With NFT domain names there is no third party involvement. You choose what to do with your NFT domain, no questions asked.
Privacy and security
Blockchain technology is well known for the privacy and security it provides and so are NFT domain names. NFT domain names are untraceable and completely decentralised making them safe, secure and private.
NFT domain names are pretty much set to be the building blocks for Web 3.0 which is also often dubbed as the internet of tomorrow. A decentralized online world where monopoly doesn’t exist. Blockchain domain names have a ton of applications known and a ton yet to be applied to create practical solutions. They are decentralized, private, safe, and act as individual assets that can be owned and traded. They are the most useful form of NFTs.
Platforms like Quik.com provide a window to purchase and sell blockchain domain names. Why not get into them while they are still buds in the still infant world of blockchain applications.
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