Crypto domains are beginning to gain popularity. The “.eth” domain has more than 1.4 million names registered. According to predictions, Web3 domains will eventually use crypto domains. In this article; we will explore crypto domains, their use cases, and how they differ from traditional domains.
What are crypto domains?
Crypto domains are NFTs that function as universal addresses for crypto wallets and websites, which is why they are also referred to as NFT domains. Crypto domains, unlike traditional domains, are not stored in a server, they are stored in a blockchain.
How regular domains work
Regular domains are registered in a domain name system(DNS) server, which connects the IP addresses to a domain. When a domain is searched in a browser, it gets connected to the DNS. The DNS connects the domain with the IP addresses in its database and shows the result to the user (See Figure 1).
Figure 1: How domain name works
Domains have two parts:
- The domain name. For example, in Aimultiple.com, AIMultiple is the domain name.
- Top-level domain (TLD). There are many TLDs, but the most well-known ones are .com, .org and.net. TLDs are managed and maintained by Internet Corporation for Assigned Name and Numbers (ICANN) which is an American non-profit organization. ICANN delegates the management of domains to registrars, which are companies that rent domains to businesses and individuals.(Figure 2)
Figure2: Traditional domain ecosystem
What are the differences between normal & crypto domains?
Registrars lease traditional domains on an annual basis. In order to maintain the ownership of the domain, the lessee must renew their membership each year. Otherwise, they will lose their domain which makes it available for others to take it. On the other hand, Crypto domains are usually bought, which provides perpetual domain ownership.
Traditional domains are centralized; ultimately, they are controlled by ICANN. However, crypto-domains are decentralized as they are stored in the blockchain, and no single person or corporation owns the blockchain. Traditional domains can be taken down by domain providers for a variety of reasons, such as copyright. However, crypto domains are censorship-resistant as they are owned by their holder and are decentralized.
Instead of typing long wallet addresses, the crypto domain can be used to send and receive cryptocurrencies. AIMultiple believes that currently, wallers are the most common use case of crypto domains.
Websites can be developed on crypto domains. They are associated with Web3 as they are both being marketed as decentralized platforms.
Crypto domains are traded the same as traditional web domains. OpenSea is one of the marketplaces where crypto domains can be traded.
Crypto domains providers
Ethereum Name Service (ENS)
ENS provides crypto domains on the Ethereum blockchains. Sending and receiving cryptocurrencies are possible with ENS domains. The main suffix of ENS is .eth .For example, Budwiser bought Beer.eth for almost $95,000.
Unstoppable Domains provide domains with endings such as .crypto & .nft . They claim to have registered more than 2.4 million domains.
BTC.US provides crypto domains with .BTC ending. They are created on the Stacks blockchain which is secured by Bitcoin. NFTs can be transferred to .BTC addresses and crypto transfers are expected to be added in the future.
Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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