If you’ve got a business, you probably have a domain name – a unique identifier that allows users to access your website, learn more about your business, make a purchase or contact you directly for more information.
We’re on the precipice of the third ‘era’ of the internet – Web3 – a time that signifies profound change for industries, consumers, and interfaces. With the promise of decentralised platforms, increased security and immutable data records, Web3 is set to transform domains into far more than just access points.
Web3 domains are addresses that use the new Web3 standard. There is no central authority to manage your domain; instead, a Web3 domain is registered on a blockchain network such as Ethereum or Polygon, governed by an underlying smart contract that affords domain holders more functionality and power beyond simple website management.
More than just a name
Traditional website URLs are managed via a central registration platform, with a website typically hosted on another centralised platform. Web3 domains are essentially simplified, reader-friendly crypto addresses (for example, take3.eth as opposed to a string of assorted numbers and letters) where users can manage their sites, cryptocurrency addresses and build dApps in one place. If you think this automatically makes life easier, you’d be right; one address to simplify a range of actions means Web3 domains possess immense potential to drive smooth Web2 to Web3 transitions for businesses, as well as wider user mass adoption.
Why purchase a Web3 domain now?
Establish your Web3 digital identity
Instead of a cryptic and confusing series of addresses, you can create a simplified identifier for your wallets, sites and applications. This allows for easier management, and a stronger identity to be used in marketing and on social media – particularly when appealing to a native Web3 community. Budweiser, for example, purchased the beer.eth domain in early 2022 for a reported 30 ETH.
A strong, single identity helps to establish trust and credibility in the space and businesses getting in early have the obvious increased chance of securing the domain they want. To that end, users are also getting in early to acquire domains that are likely to grow in value.
Have complete ownership
Technically, buying a domain name on the likes of GoDaddy doesn’t afford you with total control of it. Your domain name registration could be cancelled on you at any time. Not so with a Web3 domain – ownership data is stored on the blockchain, making it immutable and allowing you to freely transfer ownership without the approval (or waiting time) of third-party registration and hosting companies.
Build and scale easily
While traditional domains can only link to a central website, a Web3 domain can simultaneously be linked to wallets, dApps or any other decentralised content, meaning businesses have more flexibility and freedom to build what they need, as they need it, without worrying about losing their core digital identity.
Examples of Web3 domain services
Ethereum Name Service (ENS)
Built on the Ethereum blockchain, ENS allows users to manage domain names associated with Ethereum addresses, which also allow access to the blockchain’s other resources.
Bonfida
This decentralised domain name system is built on Solana. Like ENS, it grants users easier interactions with Solana smart contracts and projects.
Unstoppable Domains
Aimed at Web2 clients moving to Web3, Unstoppable Domains offer registration and management of domains on the Ethereum or Zilliqa networks. Unstoppable Domains is a popular option for two reasons: it’s compatible with almost 300 coins and tokens, and users fully own their domain once bought, so no renewal or gas fees are charged.
It pays to be thinking about Web3 domains now. Not only do they make the Web2 to Web3 transition more streamlined, Web3 domain availability means businesses can get a head start on building their brand presence in preparation for mass adoption of this next era of the internet. Explore your options now and reap the rewards in the very near future.
Words: Rebecca Haddad
