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 an email.
They are typically an asset on a public or permissionless blockchain, which anyone can join pseudonymously and is protected by a smart contract, much like an NFT.
In a nutshell, blockchain domains are not stored on a server. Instead, they are kept in a public registry or publicly accessible registry. Also, 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?
Just like domain names were invented because it was difficult for people to remember long strings of IP numbers, blockchain domains provide a human-readable name for crypto wallets.
For example, the developers of the Ethereum Blockchain created the Ethereum Name Service (ENS) to allow the registration of .eth names on the Ethereum Blockchain. So why would people register a blockchain domain? Well, one of the main reasons is that it turns a hexadecimal number into a much easier name to remember. Do you want proof, which of the following addresses is the easiest to remember?
0x78743110A1B17c86cH43g09853c0vb2836c205 o 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, numbering nearly seven million records combined: Ethereum, Handshake, and Unstoppable.
The Ethereum Name Service allows you to register .eth names on the Ethereum blockchain and .hns names on the Handshake blockchain.
However, it is important to note that since there are many competing blockchains, each blockchain works independently of the other. For example, .eth names don't work on the Handshake blockchain and vice versa, while traditional DNS domains work fine on 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 an offer, and then secure the domain.
Sometimes you have to participate in an auction, and once you've secured the domain, you have to monetize it before you can use it. This may mean buying volatile gas fees (payments made by users to perform a function on a network), which is tricky, and you'll also need to figure out how you'll store keys in wallets.
Blockchain domains are a bull market where prices are rising and show 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 that operate through the ICANN-regulated DNS system, blockchain domains are not governed by any centralized body.
They are considered free from government regulation, supervision 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 with enthusiastic metaverse dwellers because they are considered off-premises 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 to 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 most blockchain domains are pseudonymously registered, making registrants impossible to find unless they want to be found. .
Although proponents of blockchain domains cite the importance of a 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 criminal proceeds. Domain name registrants need to be discoverable to prevent bad actors from using blockchain domains in their criminal operations.
Strategies to consider in the next 12 months
Thousands of brands have already been booked in the blockchain world, and brands looking to get in on the action are finding their names taken by cybersquatters.
Since registrants are anonymous and have no formal complaint process, brands wonder how to negotiate with an owner. As a result, we are asked every day about blockchain domains and the threat they pose. A famous brand name blockchain domain attached to an unauthorized wallet is a risk. So in the short term, securing only key brands on the big blockchain is a good affordable strategy.
However, a sense of perspective is essential. Most Web2 users cannot access actual metaverses or view blockchain domains without downloading a plugin unless they are using an esoteric browser like Brave. This means there is still time to set up strategic registries or take back domains from third parties.
In the longer term, when brands value and market the utility of Web3 alongside Web2, and we all feel comfortable venturing "into" the Internet occasionally, the rule of law will be stronger. For now, a proactive strategy is needed. We offer our clients a Recon report so they know where they are in the Web3 components (real metaverses, cloud gaming, NFT platforms, and blockchain domains). We then carry out 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 on major blockchains will add legitimacy and legitimacy.
- Once you've registered your domain, you'll need the best web hosting service available.