What are blockchain domains?

Blockchain domains are based on an al­ter­na­tive name res­o­lu­tion system. While they’re not yet ready for mass use, the de­vel­op­ment of blockchain domains promises in­ter­est­ing ad­van­tages. First and foremost: With blockchain domains, you can purchase a domain instead of renting it.

When a domain is entered in a browser, the Domain Name System (DNS) ensures that the desired website is accessed. For this purpose, the ICANN registry centrally manages all domain names. For each reg­is­tered domain, the IP address of the cor­re­spond­ing web server is available. If we enter the URL, the DNS searches for the matching IP address and displays the site.

Blockchain domains, on the other hand, work in a de­cen­tral­ized way. So, there is no single place where the whole system converges as with DNS. Blockchain tech­nol­o­gy is already being used in cryp­tocur­ren­cies to store every trans­ac­tion in the ledger. This ledger – es­sen­tial­ly a long list of data – is not just on one server, but is dis­trib­uted from different places. This means that users can track the different trans­ac­tions, even in the long term, which renders the system tamper-proof.

Blockchain domains follow the same idea. The ownership of the domain is stored in the blockchain. Instead of calling up a central database when a website is visited, the browser can search the ledger to see which services are as­so­ci­at­ed with the domain. So blockchain domains are actually Non-Fungible Tokens (NFTs), which is why the new tech­nol­o­gy is also called NFT domains.

A tra­di­tion­al website domain is rented from a registrar. For the time of the rent duration – usually one year – the registrar registers the domain in your name with ICANN. To continue using the domain, you need to pay an annual fee. Otherwise, the domain is released to the public again. Blockchain domains, on the other hand, are not leased, but purchased. The purchase is entered into the ledger and the owner remains in pos­ses­sion of the domain until they decide to sell it.

Since the entire blockchain system is de­cen­tral­ized, no single or­ga­ni­za­tion (such as ICANN or reg­is­trars) has control over a domain once it has been sold. Only an owner can make changes. And that’s why a domain cannot be blocked, for example. Websites with blockchain domains also exist on the In­ter­Plan­e­tary File System (IPFS) – a de­cen­tral­ized al­ter­na­tive to the World Wide Web. Since the website is not provided by a single server, but is in turn located in the blockchain, it cannot be blocked or censored.

Blockchain domains provide some of the same pos­si­bil­i­ties as classic domain names, but they go even further.

• Website: As with tra­di­tion­al domains, you can make your website available via the blockchain domain. Websites are de­cen­tral­ized and are hosted via the blockchain.
• Wallet: The domain is a great option to replace otherwise bulky personal crypto wallet addresses. Different addresses for different mar­ket­places can be bundled under one address.
• Trading: Classic domains are traded. However, since blockchain domains are in principle NFTs, they are pre­des­tined for trading. Due to the system of smart contracts, the process of buying and selling is simple and secure.
• Apps: Software can be built on domains. De­vel­op­ment platforms and frame­works are available that are specif­i­cal­ly designed for blockchain apps.

So far, blockchain domains and the cor­re­spond­ing websites aren’t widely used which is due, in part, to the fact that not every Internet user can access the domains directly, because browsers must be able to support the tech­nol­o­gy. Opera does this out of the box; for Chrome and Firefox, however, you need to install add-ons.

Nev­er­the­less, a few busi­ness­es have already begun to secure their blockchain domains. The Budweiser brewery, for example, purchased beer.eth. It is likely that Web3 and thus blockchain domains will become more popular over time and it may make sense to buy a suitable domain now while they’re still available at a rea­son­able price.

At present, the range of mar­ket­places for blockchain domains is still limited. Un­stop­pable Domains is one of the few es­tab­lished providers. Ethereum Name Service (ENS) or Trust Domains are al­ter­na­tives. Domains purchased from Un­stop­pable Domains are written to the Ethereum blockchain. This means you also need a wallet including Ether. If you don’t yet have a crypto wallet, you will need to create one first. Pur­chas­ing Ether is required to set up and manage the domain.

To register a blockchain domain via Un­stop­pable Domains, enter your desired domain name and check if it is still available. Prices tend to vary greatly depending on the domain name you choose. While short names (first names, for example) are traded for up to $10,000, longer and less popular domains can be purchased for as little as $20. Via Un­stop­pable Domains you can choose from the following domain ex­ten­sions:

• .888
• .bitcoin
• .blockchain
• .coin
• .crypto
• .dao
• .nft
• .wallet
• .x
• .zil

Different platforms offer different domain endings. At ENS, for example, only the extension .eth is available. Trust Domains offers .defi for Etherium and .cfx, .bnb as well as .heco. It cannot be ruled out that further domain endings will be made available gradually.

Once you’ve decided on a domain, you only need to purchase it once. The checkout secures the domain as yours. There are no ad­di­tion­al annual rental fees. Un­stop­pable Domain accepts credit card, PayPal, or cryp­tocur­ren­cy payments.

However, before you can use the domain, it must be trans­ferred to the blockchain for a fee paid to the blockchain operator – just like with other NFTs – a so-called gas fee (in the sense of gasoline costs). This is due whenever something is made in the blockchain. Via Un­stop­pable Domains, the initial fee for reg­is­ter­ing the domain in the blockchain is currently not due.

You can use the domain via Un­stop­pable Domains. Link the domain to your wallet and upload a website or software. The platform can also be used to find other websites in IPFS. Classic search engines like Google are not yet designed to be used for this.