Useful for identifying cryptocurrency wallets and facilitating crypto transactions in the metaverse, a blockchain domain is an easy-to-remember address for sending and receiving cryptocurrency, making transactions as simple as sending a E-mail.
They are usually an asset on a permissionless or public blockchain, which anyone can join pseudo-anonymously and is secured by a smart contract, just like an NFT.
Simply put, blockchain domains are not stored on a server. Instead, they are kept in a public registry or a publicly accessible registry. Additionally, once a blockchain domain is created, it lives forever in your crypto wallet. No one can withdraw them as there are no renewal fees.
How do blockchain domains work?
Much like how domain names were invented because people found it difficult to remember long strings of IP numbers, blockchain domains provide a human-readable name for crypto wallets.
For example, Ethereum Blockchain developers created the Ethereum Naming Service (ENS) to enable registration of .eth names on Ethereum Blockchain. So why would people register a blockchain domain? Well, one of the main reasons is that it converts a hexadecimal number into a much easier to remember name. Want proof, which of the addresses below is the easiest to remember?
0x78743110A1B17c86cH43g09853c0vb2836c205 or Comlaude.eth.
Where do blockchain domains exist?
In theory, every permissionless blockchain can support blockchain domains, but today there are three types of blockchain domains, which total nearly seven million records combined – Ethereum, Handshake, and Unstoppable.
The Ethereum Naming Service allows .eth names to be registered on the Ethereum blockchain and .hns names can be registered on the Handshake blockchain.
However, it is important to note that since there are many competing blockchains, each blockchain operates independently of the other. For example, .eth names do not work on the Handshake blockchain and vice versa, while traditional DNS domains work seamlessly across different browsers.
How to register a blockchain domain
The process varies from blockchain to blockchain, however, the registration process is not the easiest, especially when compared to the world of DNS. For example, if you want a .HNS domain, you open a crypto wallet and fill it with HNS coins, place a bid, and then secure the domain.
Sometimes you have to participate in an auction, and once you’ve secured the domain, you then have to monetize it in order to use it. This can mean buying volatile gas fees (payments made by users to perform a function on a network), which is complicated – and you’ll also need to figure out how you’re going to store keys to wallets.
Blockchain domains are a bull market in which prices are rising and showing no signs of slowing down. For some brand owners, buying a blockchain domain is a complex experience, and that’s exactly why we help brand owners coordinate their strategies across the metaverse, cloud gaming, NFT platforms, and blockchains. .
Blockchain domains are growing in popularity
Unlike traditional domains purchased through Internet registrars operating through the ICANN-regulated DNS system, blockchain domains are not governed by any centralized body.
They are considered to be free from government regulation, oversight and control. This means that there are no harmonized technical standards, and with many competing blockchains, there is no uniform architecture.
In addition to that, they are useful for identifying crypto wallets, facilitating crypto transactions, and identifying ownership in the metaverse.
They are popular among enthusiastic metaverse dwellers because they are considered outside the establishment and can be used to identify an NFT investment – making it real because you can attach a blockchain domain to an NFT.
Blockchain domains as a potential threat
Blockchain domains are an emerging threat outside of regulation and are likely to open doors for bad actors eager to take advantage of an unregulated space.
The threat landscape is constantly changing and cybercriminals are always looking to avoid detection. Many of them have started using blockchain domains as part of their infrastructure because the majority of blockchain domains are registered pseudo-anonymously, making registrants impossible to find unless they want to be found.
Although advocates of blockchain domains cite the importance of the lack of government oversight or regulatory oversight, some law enforcement commentators argue that this philosophy is irresponsible.
When attached to a crypto wallet, blockchain domains are the perfect conduit for tax evasion and the movement of proceeds of crime. Domain name registrants must be detectable in order to prevent bad actors from using blockchain domains in their criminal operations.
Strategies to consider in the next 12 months
Thousands of brand names have already been reserved in the blockchain world, and brands looking to get in on the action are finding their names have been taken over by cybersquatters.
Since registrants are anonymous and have no formal complaints process, brands are wondering how to negotiate with an owner. As a result, we are asked daily about blockchain domains and the threat they pose. A blockchain domain corresponding to a famous brand name, attached to an unauthorized wallet is a risk. Therefore, in the short term, securing only key brands in the big blockchain is a good affordable strategy.
However, a sense of perspective is essential. The majority of Web2 users cannot access real metaverses or view blockchain domains without downloading a plugin unless they are using an esoteric browser like Brave. This means that there is still time to set up strategic records or recover domains from third parties.
In the longer term, when the usefulness of Web3 is valued and marketed by brands seamlessly alongside Web2, and we are all comfortable with occasionally venturing “inside” the Internet, the rule of law will be stronger. For now, a proactive strategy is needed. We offer our customers a Recon report so that they know where they are in the components of Web3 (real metaverses, cloud games, NFT platforms and blockchain domains). Then we undertake programs to recover or register blockchain domains and implement NFT monitoring.
Web3 investors value a decentralized, permissionless environment, but they also want their world to succeed. Having key brands in major blockchains will add legitimacy and legitimacy.
- Once you’ve registered your domain, you’ll need the best web hosting service available.