What is the domain of the blockchain?

If you search for a domain on the Internet, you will find the corresponding website thanks to the Domain Name System (DNS). In this article, we present an alternative to blockchain domains.

Anyone who runs their own website needs a domain. Domains are managed centrally by the registry ICANN. In practice, it looks like this: users enter the URL of the website they want to visit in a browser. Behind each domain is the IP address of the respective web server. The Domain Name System searches for the appropriate IP address and then opens the website.

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The process differs for blockchain domains. Below you will find out exactly how this works, what are the advantages of blockchain domains and how you can register one yourself.

How do blockchain domains work?

Unlike traditional domains, blockchain domains are decentralized. This means that there is no central body like the Domain Name System. With blockchain domains, ownership is stored directly in the blockchain.

This means that when a website is opened, no access to a central database is required. Alternatively, the browser can check directly in the ledger what is connected to the domain. In principle, blockchain domains are non-fungible tokens (NFTs). For this reason, the technology is also referred to as NFT domains.

By the way: Decentralized Internet, i.e. everything related to blockchain, cryptocurrency and NFT, is abbreviated to the term “Web3”. It is a continuation of Web 2.0.

What are the advantages of the blockchain field?

First, let’s take a look at how traditional domain ownership works. If you want to register a domain, you have to rent it from a provider, the registrar.

The provider registers the requested domain under the customer’s name with the ICANN registry. Customers then pay a fee for the rent, usually monthly or annually. If this no longer happens, the domain is released and someone else has the opportunity to register that domain.

On the other hand, Blockchain domains have the huge advantage that you don’t rent them, you buy them. This means that you buy a blockchain domain, it is entered into your ledger and is yours until you want to sell it again.

Since there is no central office involved, only owners can make changes to domains of the blockchain. This in turn prevents domains from being blocked.

What are the uses of blockchain domains?

With blockchain domains, you just don’t have the same options as with traditional domains. You also have other fields of application available. We present it to you below:

  • Create a website: As with traditional domains, the blockchain domain gives you the opportunity to create a website. In this case, the website is hosted via the blockchain.
  • Use as a wallet: Other than that, the personal cryptocurrency wallet has a very huge address that is hard to remember. Domain can be used nicely as a wallet, even with different addresses for different markets.
  • Domain Trading: Since blockchains are in principle NFTs, they can be both bought and sold well.
  • Application extension: Another advantage of blockchain domains is that software, like applications, can be built on them.

Where to buy Blockchain Domains?

Currently, the options for buying blockchain domains are still very limited. Buying from traditional suppliers is currently not possible. However, there are a few platforms where you can buy your own blockchain domain, such as Unstoppable Domains.

If you decide to buy your domain from Unstoppable Domains, it will be stored in the Ethereum blockchain. This in turn means that you also need a wallet with ether.

First enter the name you want for the domain directly on the website and check if it is still available. Prices cannot be pre-classified, they are individually associated with the name. On the platform, you can choose from different domain extensions, including “.blockchain”, “.bitcoin” and “.crypto”.

What is the problem that blockchain domains solve?

As mentioned earlier, blockchain domains solve a problem: they do not have to be registered, they need to be purchased. This prevents the domain from being released due to lost payments. In addition, with blockchain domains, only the owners have the opportunity to make changes.

Additionally, due to the new domain extensions, it is possible that there are more possible combinations. If blockchain domains do not currently interest you, many providers already offer a wide range of domain extensions to register your domain.

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This article is part of our Content Center for Web Hosting, Cloud Services and Domains sponsored by IONOS.

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