All You Need To Know About Web3 Domains

Since 2021, web3 domains have been increasing in popularity. If you are a web3 fan, you likely have seen tons of ads on Twitter or Gmail spurring you to get a web3 domain name. Currently, the internet is quickly transitioning from web2 to web3. With more users embracing the decentralized web, it seems likely that web3 domains will replace traditional domains in the near future.

Traditional domains are great, but they have some limitations. Some of these limitations are renewal costs, restricted functionality, and centralization. However, web3 domains have been created to solve most of these limitations. In this article, we will walk through what web3 domain is and the mouthwatering features that make web interaction enjoyable.

What is a Web3 Domain?

Web3 domains are a new domain name system (DNS) designed to work on decentralized networks like the Ethereum, Algorand, Solana, and the Aptos blockchain. Instead of relying on traditional centralized domain registrars, web3 domains are registered, managed, and controlled on a decentralized network.

For example, instead of a traditional URL like “www.gate.com,” a web3 domain might look like “gate.crypto”. For web3 domains, the registration and ownership are recorded on a blockchain, making it more secure and decentralized.

A web3 domain creates a path to access websites and decentralized applications using a DNS system. They are non-fungible; hence, they can also be called NFT domains. Web3 users rely on blockchain technology and its security to create these NFT domain names on-chain.

How do Web3 Domains Work?

Web3 domains utilize three main entities; the registrars, the registry, and the resolver. These three entities enable using web3 domains in decentralized systems. Users can register unique, human-readable names through a registrar, which a registry stores and manages. On the other hand, the resolver is responsible for converting the domain name into the corresponding blockchain address. Here’s how the registrars, the registry, and the resolver works.

Registrars

Web3 domain registrars control domain name registrations plus total ownership management. The ownership is transferred to the individual who either mints or registers the domain name.

Registrars also provide readable web3 domain names replacing long algorithms made up of alphabets and numbers, making it easier for humans to memorize.

Web3 domain registrars do more than provide hosting services. They also allow individuals to operate without any dependence on a central server. This gives web3 domains an edge over traditional domains by promoting privacy and security when using the internet.

Some web3 registrars give users complete ownership of a domain once purchased. That means after purchase, domain owners need not pay renewal fees. On the other hand, some providers still adopt the technique used for centralized domain providers.

Registry

Registries are databases that store information about web3 domain names, including ownership and associated blockchain addresses. They are implemented as smart contracts on a blockchain network and manage the allocation and distribution of domain names.

Web3 domain registries operate differently from traditional domain name registries. Web3 domain registries are decentralized and managed by a network of validators that participate in the consensus mechanism of the underlying blockchain. Registries are responsible for managing ownership of domain names and allocating domain names to users.

Further, registries could have a governance mechanism that allows network participants to vote. With a governance system in place, users could propose adding new features to the registry.

Resolver

The resolver is responsible for converting human-readable domain names into machine-readable blockchain addresses. When a user types in a web3 domain name, the resolver looks at the corresponding blockchain address and routes the user’s request to the correct dApp or web3 service.

Web3 domain resolvers are typically implemented as software applications that interact with a registry. Resolvers aid name resolution by mapping domain names and blockchain addresses. They are also responsible for address routing and linking requests with the correct blockchain address. Further, Resolvers reduce the weight on the registry through caching. When frequently accessed domains are stored in a cache, resolvers swiftly retrieve data without involving the registry.

Web3 Domains vs Regular Domains

Web3 and regular domains are two types of domain name systems (DNS) used to identify websites and other online resources. Here are some key differences between the two.

Centralization

Those who use a traditional domain name have limited control since it is rented through a domain name registrar controlled by the Internet Corporation for Assigned Names and Numbers (ICANN). This international institution handles the domain name registrar system. Also, regular domains are managed by centralized domain registrars, such as GoDaddy or Network Solutions, that control the registration, renewal, and transfer of domain names. Unlike these, web3 domains are registered, managed, and controlled on a decentralized network.

Ownership

With regular domains, ownership is often tied to an individual or a company and can be transferred to another party if the original owner chooses to sell it. Web3 domains are controlled by the owner of the private key associated with the domain.

Security

Traditional domains are vulnerable to hacking, theft, and cybercrime. Although web3 domains could also be vulnerable to security breaches, they are more secure. Cryptographic signatures and the blockchain’s immutable feature ensure that domain ownership is recorded securely.

Censorship

Another key difference between traditional domains and blockchain domains is censorship. Traditional domains can be censored by governments, internet service providers, and other entities with the power to control the flow of information. Interestingly, governments and entities do not have the power to censor web3 domains.

Interoperability

Regular domains function with web2 technologies. They can be built for regular web browsers and search engines, but web3 domains differ. They are not interoperable with web3 technologies yet. Instead, they work with dApps, enabling a new era of decentralized web services.

Why Get a Web3 Domain?

A web3 domain is best for crypto users seeking more from blockchain technology. Decentralized domains provide multiple benefits that are absent in traditional domains.

Web3 domains serve as crypto wallet addresses

Web3 domain names can link with crypto wallets. Generally, memorizing wallet addresses can be extremely risky because they are usually made up of alphabet and numbers, which must be accurate before funds can be received into the wallet.

Over the years, many people have preferred the ‘copy and paste’ style. However, they may have to check conscientiously, even after pasting, to ensure the address was well pasted. Any slight mistake or mixed-up symbol automatically means the funds will not be received in the right wallet.

Thankfully, web3 domains save you the stress and fret by replacing long strings of alphanumeric addresses with shorter domains. Hence, users can receive crypto funds by substituting the wallet address with a domain name.

It is your digital identity

Domains also enhance decentralized and distinctive ID management. Getting a web3 domain gives a user autonomy and complete control and helps create and protect personal identities and data online. It is also instrumental in preserving data by storing them on the public blockchain or wallet hosting.

Moreover, getting a web3 domain name could be an excellent way to begin for those who want to display their work or portfolio. It brings about the possibility of creating an up-to-the-minute CV for digital recognition. Also, it is especially beneficial to designers, developers, coders, and artists.

Web3 domains can also keep private documents or content since they are decentralized and only the host controls them. They can be registered without any identification of the source.

Web3 domains can be traded as NFTs

Domain names can be stored in digital wallets and interchanged or sold. Users can list their domain names for sale on specific marketplaces like Quick.com and OpenSea.

While web3 domains offer many potential benefits, they also have several limitations. These limitations include a lack of widespread adoption, technical complexity, limited integration with existing web technologies, and compatibility issues with some systems and platforms.

How to Buy a Web3 Domain Name?

Buying a web3 domain is not so hard. You can get a web3 domain from Quik.com, ENS, Unstoppable Domains, Handshake domain, and Emercoin, among others. Unstoppable Domains and ENS (Ethereum Name Service) are the most popular platforms for getting a web3 domain name.

Buying a domain name on Unstoppable Domains

Here are the steps to buy a domain name on Unstoppable domains.

1. Visit the website Unstoppabledomains.com

2. On the homepage, use the search bar to pick the name of your choice.
   

3. Select the desired ending for your preferred name. It could be yourname.bitcoin, yourname.crypto, yournam.blockchain, and so forth. After selecting the desired ending, click the “add to cart” button.
   

4. Go to the cart, and click on checkout. After clicking checkout, you will be asked to login or signup on to the platform via an email address or a wallet address.
   

5. Once you’ve signed up or logged in, you will be directed to the payment page. You can pay with PayPal, Ethereum, a Credit card, or via Crypto.com.
   

6. You will be directed to the mint page to mint your domain name when the payment is successful. That’s it, you now own the domain name forever, without renewal fees.

Buying a domain name on ENS

Take the following steps to register a domain name with Ethereum Naming Service (ENS).

1. Visit app.ens.domains
2. Click on “Connect wallet” at the top-left of the screen. You can connect a MetaMask wallet, a Coinbase wallet, or any other decentralized wallet.

3. Input your preferred domain name in the search bar of the home page and click on “Search.”
   

4. You can register the domain name if your preferred name is available. ENS will provide the transaction details, estimated gas fees, and duration of ownership. Note that you can extend the duration of ownership.

5. Complete the 3-step registration process and click the notification icon to get notified when the transaction is successful. Once completed, you now own a decentralized domain name.
6. Alternatively, an ENS domain name can be purchased on a secondary marketplace like OpenSea. To buy an ENS domain name from Opensea, visit the platform’s verified Ethereum naming service page.

The ENS 10K Club

The 10K club is an NFT domain name community with individuals who own a four-digit ENS domain between 0000 and 9999. The 10K club members’ domain bears the .eth tag. Some examples of these domain names are 0327.eth, 0555.eth, and so forth.

The 10K Club community particularly made waves in April 2022 when users rushed to purchase these unique domains. The domain acquisition rush drove sales volume from less than 100,000 to 500,000 and eventually into the millions. At the time, the floor price for these domains also experienced a remarkable appreciation of 1,650% from the initial mint price of 0.05 ETH.

The 10K club names can serve as Ethereum wallet addresses, cryptographic hashes, and website URLs. As decentralized applications, wallets, exchanges, and marketplaces increasingly adopt NFT usernames from ENS or rival platforms like Unstoppable Domains, users in the Web3 ecosystem recognize the inherent value of linking digital identity to these domain names.

Buying a domain name on Quik.com

To buy a domain name on Quik, follow the steps below.

1. Visit quik.com

2. At the top of the page, select “NFT domains.” You can select a wide range of domain types from .metaverse, .web3, .btc, .chain, .vr, and more.
   

3. After selecting the domain type, you will be redirected to the domain page. The domain page has numerous domain names already listed for sale on Quik. You can select one and proceed to mint. Alternatively, you can use the search bar to check for the availability of your preferred domain name.

4. Click on the mint button to secure the selected domain name on-chain.
   

5. You will be asked to connect your wallet, and the minting fee will be charged to your wallet.

6. Once the transaction is successful, you own the domain name as a non-fungible token in your wallet.

Other Domain Name Services

Although the Ethereum network is the most popular network for domain-related transactions, the Solana network, Aptos chain, and BSC networks also have domain name services.

Solana Naming Service (SNS)

SNS is a convenient Solana Program that enables users to generate a human-readable domain name as an alternative to a Public Key. It assigns users a “.sol” domain name via a user’s Program Derived Account. This domain name can be useful for sending assets to others or easily locating token accounts on an Explorer.

Bonfida is the entity behind SNS and is also actively working towards enabling use cases that promote a decentralized web, such as decentralized DNS for websites that utilize the .sol domain.

Binance Smart Chain Name Service

The BSC Domain Name Service complies with the ERC721 standard. It allows users to have autonomous control over their domain names and sub-domains, making it a fully decentralized solution. Like other NFTs, these domain names can be transferred using NFT-enabled wallets.

The user management interface for domain names allows the binding of addresses on the Binance Smart Chain, enabling the domain names to be used for receiving cryptocurrencies.

Aptos Name Service (ANS)

Just like with Solana and Binance Name Services, the Aptos name service permits a .apt name instead of public keys. When Aptos announced the launch of its decentralized name service, the team stated that its goal was to enable a better user experience for Aptos users.

A .apt name can be purchased from the Aptos wallet. The steps to purchase a .apt name is similar to purchasing a .ens or .sol name. Users can search for their preferred name and pay with the APT token if the name is available.

Conclusion

What differentiates web3 domains from traditional domains is that a user alone can be the rightful owner of the domain. Each domain name is unique and cannot be replicated. With a web3 domain, you can enjoy secure access to decentralized applications, full domain ownership, and increased privacy.

In summary, while both web3 domains and regular domains serve the same basic purpose of identifying websites and other online resources, they differ in key ways, such as their level of centralization, ownership, security, censorship resistance, and interoperability with other technologies. The choice between the two will depend on the user’s or business’s specific needs and goals.