What is a decentralized domain name?
A decentralized domain name is a new type of internet domain i.e web3 domain name that is not controlled by any central authority. Decentralized domains are powered by blockchain technology and can be bought, sold, or transferred just like cryptocurrency. They are stored on a decentralized ledger, which means that they are not subject to censorship or seizure by governments or other third parties.
What is the difference between a centralized and decentralized domain?
The main difference between a centralized and decentralized domain is who controls them. Centralized domains, like .com or .org, are controlled by a central authority, usually a company or organization. Decentralized domains, on the other hand, are powered by blockchain technology and are not controlled by any central authority. This makes them censorship-resistant and immune to seizure by governments or other third parties.
What are all these .eth, .blockchain, .crypto, and .nft domain names? What is the difference between these domain names?
There are many different types of decentralized domains, each with its own unique suffix. For example, .eth domains known as ENS domains are powered by the Ethereum blockchain, while .blockchain domains are powered by the Bitcoin blockchain. There are also specialized domains for specific industries, such as .crypto for the cryptocurrency industry and .nft for non-fungible tokens (NFTs). A company named unstoppable domains issues .crypto, .nft, and .blockchain domains.
How decentralized domain is different from a centralized one? Explain the difference in terms of DNS, hosting, and storage systems.
Decentralized domains differ from centralized domains in several key ways. Firstly, they are powered by blockchain technology instead of being controlled by a central authority. This makes them censorship-resistant and immune to seizure by governments or other third parties. Secondly, they use decentralized DNS (Domain Name System) instead of centralized DNS. This means that there is no single point of failure that could take down the entire system. Finally, they use decentralized storage systems instead of centralized ones. This makes them more resistant to hacks and data breaches. A decentralized domain uses InterPlanetary File System (IPFS), a peer-to-peer network for storing and sharing data.
What can we do with decentralized domains? What are the use cases of ens, crypto & NFT Domains?
Decentralized domains can be used for a variety of purposes, such as building censorship-resistant websites, creating secure email addresses, or creating unique digital identities for yourself or your business. Some of the use cases for decentralized domains are broken down below:
Crypto Wallet address: You can use your decentralized domains such as .eth, .crypto and .nft as your crypto-wallet id. If you’re using a self-custody crypto wallet such as metamask, you can incorporate your web3 domain name with it. A crypto wallet address is like a long string of alphanumeric bank account numbers. The use of a domain name instead of a long wallet address would make it easier to transact currencies.
Social profile: You might have seen a few people and brands having decentralized top-level domain names as their Twitter and social handle. For example, Puma. You can also use your domain name as a social handle to leverage the power of trends and networking.
Investment: Just like regular domain names, you can also flip decentralized domain names. Because people see the future of the internet as decentralized and value crypto as the native currency of the internet, the demand for decentralized domains is only growing. In addition, a decentralized domain can be used as an NFT that allows access to speculating on NFT marketplaces.
Creating a website: Yes you can create a website using decentralized domain names. For example, if You are a music artist, and you want to make a website for your Music NFTs, you can use decentralized domains for website & social identity. A browser such as brave offers specialized solutions for sites with decentralized domain names.
Digital identity to have access to different projects: A decentralized domain such as .nft can be used as your digital identity that can be used as login access into different decentralized finance and crypto projects.
Community: Owning a decentralized domain name can open doors to different projects as a member of their discord and Twitter groups. The companies behind decentralized domains such as ens and unstoppable often bring special perks and early access to growing crypto and NFT projects.
Where can you buy decentralized domains?
Decentralized domains can be bought from a variety of online platforms and exchanges, such as Unstoppable Domains, Namecoin Exchange, and Ethereum Name Service (ENS).
Can decentralized domains be censored?
No, decentralized domains cannot be censored because they are not controlled by any central authority. This makes them ideal for building censorship-resistant websites or creating secure email addresses that cannot be blocked by government censorship or corporate firewalls.
How to learn more about buying and using decentralized domains?
If you want to learn more about buying and using decentralized domains then we recommend checking out guides on Unstoppable Domains and Ethereum Name Service (ENS). These platforms offer an easy way to buy and use decentralized domains without having to set up your own infrastructure.
How many decentralized domains have been registered so far?
Ens i.e. .eth domains – As of 20th November 2022, 2.76 million domains are registered. Source: ens.domains
Web3 domains from unstoppable – As of 20th November 2022, 2900000+ domains are registered. Source: unstoppabledomains.com
How much are the most expensive ens and NFT domain names sold for?
Some of the ens domains such as paradigm.eth and 000.eth sold for 300 – 400+ Ethereum that means up to 2 million USD.
What prominent companies use decentralized domain names?
Some notable companies who have started using decentralized domain names include Puma, Budweiser, Nike, Microsoft, Google, Apple, Amazon, Facebook, Twitter, Reddit, Airbnb, Tumblr, OkCupid, Match Group, Stripe, Square, and Shopify .”
Mortuza is a certified Digital marketer with a Master’s degree in International Economic Relations (Spec. International Business).
An entrepreneurial professional, crypto native, and deeply involved in web3, i.e., blockchain, NFT & metaverse community. The author spends hours researching all the exciting new trends in the broader business world.