TLDR
The central use-case of NFT domains is that they replace complex crypto wallet addresses on the decentralized web. They represent a true evolution in domain name technology by adding transparency, security, and functionality to traditional domain names.
Users can buy crypto domains at Unstoppable Domains or ENS. Each crypto domain is a unique NFT (non-fungible token) stored inside a wallet address of a user’s crypto wallet instead of a traditional centralized website registrar such as GoDaddy.
The uniqueness of an NFT domain is that it can be easily minted on the public blockchain and bought/sold on NFT marketplaces. Furthermore, these provide users with a much more interactive website experience than their counterparts. One can even create decentralized websites with the help of these domains.
Introduction
Non-fungible tokens, or NFTs, have come a long way since they first debuted in 2015. While the concept of NFT is fascinating, it takes time to wrap their head around it.
Today, we will learn about next-generation domains, also becoming popularly known as NFT domains. In this explanatory guide, we will discuss how NFT domains work, their origin, functionality, differences from traditional counterparts, and everything else you need to get familiar with the subject.
We’ll begin with the most fundamental questions regarding NFT domains. But first, let’s get the basics out of the way.
What is an NFT?
If you hear the word “NFT domain” for the first time, it’s probably because you don’t know about NFTs.
NFTs refer to a unique class of other digital asset assets that can take the form of almost anything from an audio file to a video clip or digital art and, now, even a domain name. But the best part of non-fungible tokens is their features.
Some unique NFT features are
- At the core of an NFT is blockchain technology used to store information in blocks in a peer-to-peer network.
- They are unique, meaning one NFT cannot be similar to another.
- They are designed to be digitally protected so one cannot duplicate an NFT.
Due to these features, most digital artists are familiar with NFTs because they act like a digital deed for their digital artworks.
What are NFT Domains?
Firstly, a non-fungible token domain or NFT domain is a blockchain domain. So naturally, an NFT domain uses and is based on the same blockchain technology as an NFT.
However, the reason why an NFT domain is not a “traditional domain” is because the data it stores is secured in a decentralized manner.
A few things you need to know about NFT domains:
- These are not like Web 2.0 website domains.
- You can pick any NFT domain name you want.
- To register a name that ends with .crypto or .nft, one has to pay for it.
- A public blockchain contains all the information regarding the NFT domain owner and the contents of the domain.
- NFT domains are stored in a compatible wallet like NFT or cryptocurrency wallet.
- They can allow crypto trading.
There is much to know about NFT domains and how NFT domain names work, but we must first understand traditional domains.
What are Traditional Domains?
We have used traditional domains since the emergence of the World Wide Web. Any web address you use in a browser to visit a particular website is a traditional domain.
More than several hundred million domain names are out there, each with a particular structure. For example, www.google.com is a traditional domain.
These domains are used for accessing Web 2.0 websites and are known as Web-2 domains. Traditional domains generally incur an annual renewal fee for registration.
To begin, we first need to know some groundwork like:
Domain name system or DNS
Think of this as a phonebook of the internet. A DNS makes it easy for humans to access websites. It converts complex IP addresses to a domain name to make them accessible and interactive.
Domain registries
Several organizations manage domain names. These registries store all information regarding individual domains and their owner.
Domain names work in conjunction with DNS. Domain names in Web 2.0 have been designed for people to make accessing a website effortlessly. It would be impossible to remember a string of digits, but it’s easier to remember the name of a website.
Trusted Partners
5
Fees
0.1 – 0.5%
Tradable Coins
600+
Payment Options
+ 3
4.7
Fees
0.01 – 0.10 %
Tradable Coins
100+
Payment Options
4.3
Fees
0.04% – 0.10%
Tradable Coins
145 +
Payment Options
How do Traditional Domains Work?
A traditional domain is often called a vanity or centralized domain name because of its nature. These operate on centralized servers based on a hierarchical system, including domain registries and registrars.
For example:
GoDaddy is a domain registrar, while Verisign is a domain registry.
When you type in the domain name in any internet browser, it starts by sending a request to the DNS where all servers are connected. The DNS takes no time to forward the domain name server to your request. A web hosting company handles this domain name server and routes the request to a web server.
This web server retrieves the web page and its content as requested before sending it to your browser for viewing.
How are NFT Domains Different from traditional domains?
Apart from what we have already learned about NFT domains, there are many striking differences between them and traditional ones. Let’s take a look at these differences in detail.
Differences between the NFT domain and traditional domains:
- NFT domains are essential for simplifying crypto web addresses into human-readable web 3.0 usernames.
- They are essential for creating decentralized websites.
- Traditional domains are not unique and fungible, but NFT domains are unique and non-fungible.
- Being fungible means traditional domains can be replaced in this context, but NFT domains are irreplaceable.
- They have been introduced on public blockchains as web extensions, making them more open and safer than traditional ones.
- Traditional ones can only let users access a website, but NFT domains offer more interactions, such as buying/selling them to make money.
Why the Need for Decentralized Domains?
To understand why we need such domains or NFT domains, we need to know what’s wrong with the current system.
Shortcomings of existing domains
The existing domain system does not allow users complete control over ownership. As a centralized system, traditional domains typically rely on one registry that only a few chosen parties can update. Even if you purchase a domain name, the domain registrars remain the custodians.
Further details in the aforementioned point lead us to the biggest flaw in such domains. They are highly centralized. A handful of organizations have the power to grant new extensions and charge recurring renewal fees for domains.
The internet was designed with payments as a vital component of it. However, it is still risky to send payments using these domains. On the centralized web, there are no cryptographically-secured payment methods. Apart from a few companies like Stripe, there are no global solutions to make payments easy and secure.
From the aforementioned, what needs to be changed and why is clear. With the help of blockchain technology, decentralized websites could bring a much-needed change in the Web3 domain.
Does Google index NFT Domains?
Currently, an NFT domain name is not being crawled by Google and, thus, is not getting indexed. As a result, users will have difficulty utilizing the Web3 domain’s ranking.
Rest assured, as they become more popular and adoption increases, Google’s search engine may also index them.
Creating Decentralized Websites
NFT domains are available through Ethereum Name Service (ENS) and Unstoppable Domains.
Ethereum Name Service
You can think of ENS as a DNS that converts a complex crypto wallet address into something readable. This service does not offer custodial and deals with top-level domains .eth.
As the name suggests, it supports the Ethereum blockchain. One only needs to register annually; the price will depend on the domain name length.
Unstoppable Domains
You could also choose the Unstoppable Domains service to get the Web3 and crypto domain names.
The difference between them is as follows:
- Unstoppable domains offer users custodial with one-time registration that does not require renewal.
- Unlike ENS, Unstoppable Domains supports multiple blockchains, including Ethereum, Polygon, and Zilliqa.
- Some top-level domains (TLD) that Unstoppable domains provide are .nft, .wallet, .dao, .coin, .bitcoin, .dao, .zil, and .blockchain.
- The total pricing at Unstoppable domains depends on character length and TLD.
Where Can You Buy an NFT Domain?
There are many service providers, including ENS and Unstoppable domains, where you can buy NFT domains.
But before you buy an NFT blockchain domain name, it’s important to research which provider fits your requirements. Also, watch whether the blockchain domains you’re looking at are available for mint or purchase.
Getting NFT for blockchain domains is easy whether you choose unstoppable domains or Ethereum Name Service. Blockchain domains can be as expensive or as affordable as one chooses.
How Do I Purchase an NFT Domain Name?
To purchase NFT domain names, you must pick a marketplace. After that, you need to follow a few simple steps as given below;
- Sign up for an NFT marketplace as your choice, and then look for existing domain names for sale.
- Once logged in, set up a digital crypto wallet address and connect that crypto wallet to the NFT marketplace to start the purchase.
- Add crypto (preferably ETH) to your wallet to make the purchase successful. You can check the available payment options before making the purchase.
- Finalize your purchase of an NFT crypto domain name of your choice.
Once the purchase is complete, you must mint the NFT domain on a public blockchain using Ethereum Name Service or Unstoppable domains.
Pros
- These are unique and renewable in nature.
- Once minted using a wallet address, they provide holders full ownership.
- These domains are censorship-resistant.
- They eliminate the need for a central authority and provide a decentralized experience.
- One can mint, buy, sell, and even trade NFT domains at NFT marketplaces.
Cons
- Despite being so popular, a crypto NFT domain is not yet indexed by Google and other search engines.
- There are not too many options in the case of crypto domain providers.
Summary
This comprehensive article summarises what blockchain domain names offer and what exactly crypto NFT domains are all about. Through the aforementioned, it’s clear that people need decentralized crypto domains to make Web 3.0 accessible.
Owing to new and emerging NFT domain name providers and hosting sites, we are gradually reaching the point where Google could start indexing NFT domains.
To select the ideal NFT domain name, it's crucial to prioritize memorability by keeping it short and using familiar words. Avoid obscure vocabulary, regional expressions, and meaningless combinations. It would be regrettable if your website gains users, but they struggle to recall its name.
Unstoppable Domains is a NFT domain name system built on blockchain technology, enabling users to purchase, sell, and exchange NFT domains/crypto domains. Its broad range of features and user-friendly interface make it the top choice for purchasing NFT domains.
NFT domains differ from traditional domains as they are generated through smart contracts on a blockchain network, rather than being bought and registered via a domain registrar. Additionally, these domains are individual digital assets that can be traded similarly to other cryptocurrencies.
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
