Although website domains have been around for a while, they’re evolving thanks to new technology. Some blockchain companies strive to make them more secure and versatile by adding non-fungible tokens (NFT) to the mix.
What are NFT domains?
NFT domains are registered as smart contracts on the blockchain, commonly on Ethereum. Each decentralized domain name is minted as an NFT, guaranteeing that the buyer will own the domain.
The goal is, as in the case of many web3 applications, to eliminate the central authorities or intermediaries. As a result
- They allow users to have complete ownership of their data.
- Since they’re registered on a public blockchain, anyone can view the stored data. This makes the procedure much more transparent than the case with the conventional domains.
- Security is increased because only the domain owner has the authority to make changes.
While the web2 domain names have the extensions of .com, .co, .net, .info etc.; NFT domain names end usually with .crypto, .coin, .bitcoin, .x, .888, .nft and .dao.
Top reasons to buy an NFT domain
When you buy an NFT domain, you’re the only owner of it. You buy it once, and there’re no recurring payments or renewal fees.
You can also create and host websites, as is the case with the traditional domains. Yet, NFT domains are much more than website domains. They come with crypto-specific benefits.
They can operate as a standard web3 wallet. This means you can buy, send, and hold crypto assets and sign in to decentralized apps using the NFT domain as your username. This feature also allows using easy names for crypto transactions instead of sharing long wallet addresses of the typical web3 wallets, like Metamask.
How to buy NFT domains
A well-known NFT domain provider is Unstoppable Domains. It has integrations with over 250 decentralized apps, which you can view all here. It’s possible to carry out transactions with 200+ cryptocurrencies if you acquire your NFT domain with this provider.
To buy a domain on Unstoppable Domain, first head over to the homepage and check if your desired domain name is available.
You can search for new domains on the homepage of Unstoppable Domains.
For example, let’s look up “peaceful.” As of writing this article, NFT domain names with the following extensions were available:
Next to names, you can also see purchasing prices. The company determines the prices based on a tier system. According to this, the tier 3 system includes three-character domains that are the most valuable. Tier 4 includes four-character domains with popular words with prices just one stage lower than those of tier 3. The tier system goes on in a similar fashion. Tier 5 includes five-character names, and tier 6 includes six-character names, etc. Domain prices drop with increasing tiers.
Domain prices may vary considerably for different extensions, as well. Generally speaking, .blockchain is the most affordable, and .x is the most expensive. A tier 3 .x domain can cost between $12,500-$25,000; while a .blockchain domain name within the same tier can cost between $1,250 – $2,500. These prices are at the highest end, however. For instance, a tier-8 domain with a .blockchain extension only costs 10$.
You may encounter “premium” and “protected” domains as a result of some searches. Premium names are domains that unstoppabledomains.com is releasing in phases. They’re short, popular names that are very valuable. Protected ones are the domains associated with brands and trademarks.
Choose “Add to cart” to proceed with ordering your NFT domain and check out. You can pay with your credit card, PayPal, or a cryptocurrency like Bitcoin, Bitcoin Cash, or Ethereum.
When the purchase is complete, you receive the domain as a token. As stated above, you can use it as a web3 wallet on its own. However, as it’s a token, you can store your domain also in a hardware crypto wallet like Trezor or Ledger, just like any other cryptocurrency.
Things to consider when buying NFT domains
Whether you buy your NFT domain through unstoppabledomains.com or another provider, there’re a few things to consider.
Popular web2 search engines like Google don’t index blockchain domains. So, it’s not yet possible to discover NFT domains through a web search. You’ll need to find other ways to share your new domain with the world.
As with everything related to crypto, there’re fraud risks. You should be familiar with crypto-wallets if you like to use NFT domains. You can start learning about cryptocurrency wallets by reading this article we previously published on thedigitalsweep.com.
Before buying an NFT domain, you should also check if it’s compatible with other crypto wallets you’re already using, such as Coinbase or Trust Wallet, so that you can make transfers.
Check also which browsers are compatible with the NFT domain you’re purchasing. This is particularly crucial if you would like to use your domain as an NFT gallery so that it’s possible to view it in a browser. As an example, unstoppabledomains.com supports Chrome, Firefox, Edge, Opera, and Brave.
Blockchain applications open up new possibilities for a diverse range of applications. In this article, we introduced you to the emerging concept of NFT domains.
They’re more than domain names that you can use to direct people toward websites. Of course, if you wish, you can use them exclusively for this purpose.
But they also serve as web3 wallets that you can use as your username across many different decentralized applications. This function eliminates the need to creating new usernames and passwords, unlike web2 logins, for every site you want to sign in to.
That’s why NFT domains are important stepping stones towards a durable decentralized digital identity.