What are block­chain domains?

Block­chain domains (often also referred to as ‘crypto domains’) are based on an al­tern­at­ive name-res­ol­u­tion system. Whilst this new de­vel­op­ment isn’t yet main­stream, it already promises some in­ter­est­ing benefits—for example, unlike tra­di­tion­al domains, block­chain domains can be purchased.

How do block­chain domains work?

When you enter a domain in your browser, the Domain Name System (DNS) makes sure the website you want is loaded. To do that, the ICANN assigning authority centrally manages all domain names. For every re­gistered domain, the IP address of the as­so­ci­ated web server is stored. When we enter the URL, the DNS looks up the matching IP address and accesses it.

Block­chain domains, on the other hand, work in a de­cent­ral­ised way. That means there’s no single point where the entire system comes together, unlike the DNS. Block­chain tech­no­logy is already widely used for crypto­cur­ren­cies, where every trans­ac­tion is recorded in a ledger. This ledger — es­sen­tially a long list of data — doesn’t live on one server; it’s dis­trib­uted across many different nodes. This makes it possible for all users to see what trans­ac­tions have occurred over time, which in turn makes the system highly resistant to tampering.

Ownership of the domain is stored on the block­chain. So instead of querying a central database when a website is accessed, the browser can check the ledger directly to see which services are linked to the domain. In this sense, block­chain domains function as non-fungible tokens (NFTs), which is why this emerging tech­no­logy is often referred to as NFT domains.

Because they can be linked directly to crypto­cur­rency wallets, many block­chain domains are also referred to as crypto domains. This makes it easy to send crypto­cur­rency payments to a domain address without having to copy com­plic­ated wallet addresses. Crypto domains are therefore es­pe­cially well-suited for projects in the crypto or NFT space.

Benefits of a block­chain domain

If you want a tra­di­tion­al domain for your website, you have to rent it from a domain registrar. For the rental period — typically one year — the registrar registers the domain with ICANN in your name. If you want to keep the domain longer, you need to renew it each year; otherwise, the domain becomes available again.

Block­chain domains, however, are not rented but purchased. Once you buy a domain, it’s written to the ledger and remains yours until you choose to sell it.

Because the entire block­chain system is de­cent­ral­ised, no single or­gan­isa­tion (such as ICANN or re­gis­trars) can control a domain once it has been sold. Only the owner has the ability to make changes, which also means the domain cannot be suspended. Websites that use a block­chain domain are stored in the In­ter­Plan­et­ary File System (IPFS), a de­cent­ral­ised al­tern­at­ive to the tra­di­tion­al web. Since these sites are not hosted on one central server but dis­trib­uted across the block­chain, they cannot be easily blocked or censored.

Crypto domains also provide clear ad­vant­ages for anyone working with crypto­cur­ren­cies. They allow you to send payments, NFTs, or tokens directly to a simple, memorable domain address instead of relying on long, error-prone wallet addresses. These domains can also be in­teg­rated with de­cent­ral­ised services — for example, for login systems or de­cent­ral­ised apps (dApps) — making them both practical and useful for branding.

Benefits of crypto domains at a glance:

✓ Ownership instead of rental: domains remain yours per­man­ently

✓ De­cent­ral­ised: no central authority can suspend the domain

✓ Cen­sor­ship-resistant: websites on IPFS are difficult to block

✓ Simpler payments: crypto domains can be linked directly to wallets

✓ Ideal for NFTs and crypto projects: branding and payment func­tion­al­ity in one crypto domain

Use cases for block­chain domains

Block­chain domains offer some of the same cap­ab­il­it­ies as tra­di­tion­al domain names. However, they go even further.

• Website: As with tra­di­tion­al domains, you can use a block­chain domain to make your website available. These websites also work in a de­cent­ral­ised way and are hosted via the block­chain.
• Wallets: The domain is es­pe­cially practical as a re­place­ment for the otherwise cum­ber­some address of your personal crypto wallet. Different addresses for different mar­ket­places can also be con­sol­id­ated under a single address.
• Trading: Tra­di­tion­al domains are traded as well. However, since block­chain domains are es­sen­tially NFTs, they’re es­pe­cially well-suited for trading. Thanks to smart contracts, buying and selling is very easy and secure.
• Apps: You can also build software on these domains. Even today, there are de­vel­op­ment platforms and frame­works designed spe­cific­ally for block­chain apps.

So far, block­chain domains—and es­pe­cially the websites as­so­ci­ated with them—are still not wide­spread. One reason is that you can’t simply access these domains directly, because the browser must support the tech­no­logy. Opera already does this out of the box; for Chrome and Firefox, however, you have to install add-ons.

Still, some companies have already secured block­chain domains. For example, the major brewery Budweiser purchased beer.eth. It’s likely that Web3 — and with it, block­chain domains — will continue to grow in pop­ular­ity. So it may be a good idea to purchase a suitable domain now, whilst prices are still re­l­at­ively low.

How to register block­chain domains

Right now, the number of mar­ket­places for block­chain domains is still fairly limited. Un­stop­pable Domains has emerged as one of the main providers because the platform is es­pe­cially easy to use. Other services include Ethereum Name Service (ENS) and Freename. Domains purchased through Un­stop­pable Domains are written to the Ethereum block­chain. This means you’ll need a wallet that supports Ether. If you don’t have a crypto wallet yet, you’ll need to create one first. You should also purchase some Ether, since you may need it to set up and manage the domain.

On the Un­stop­pable Domains homepage, enter your desired domain name to see if it’s available. Prices can vary sig­ni­fic­antly depending on the name. Short domains — such as common first names — can cost up to £8,000, whilst longer or less sought-after names may be available for around £15. On Un­stop­pable Domains, you can choose from the following ex­ten­sions:

• .888
• .bitcoin
• .block­chain
• .coin
• .crypto
• .dao
• .nft
• .wallet
• .x
• .zil

Other platforms offer different ex­ten­sions. With ENS, for example, only the .eth extension is available. Freename, on the other hand, supports a wide range of ex­ten­sions because users can even create and mint their own TLDs across multiple block­chains. Popular options include ex­ten­sions like .web3, .meta, .nft, and many others. Since new TLDs can be in­tro­duced at any time, the selection continues to grow.

Once you’ve decided on a domain, you buy it with a one-time payment. After that, the domain is yours. That means you won’t have any ad­di­tion­al renewal or rental fees. With Un­stop­pable Domains, you can pay by credit card, PayPal, or crypto­cur­rency.

Before you can actually use the domain, it still needs to be written to the block­chain. Just like with other NFTs, this usually requires paying a fee to the block­chain operator — the so-called gas fee (similar to fuel costs). This fee applies anytime an action is performed on the block­chain. With Un­stop­pable Domains, the initial fee for re­gis­ter­ing the domain on the block­chain currently doesn’t apply.

Once that’s done, you can use the domain through the Un­stop­pable Domains platform. Link the domain to your wallet and upload a website or software. The platform can also be used to find other websites on IPFS. Tra­di­tion­al search engines like Google aren’t designed for that yet.

Should you start using block­chain domains?

If you want to be suc­cess­ful online in the long term, you should start fa­mil­i­ar­ising yourself with block­chain domains now. It can also be worth­while to secure domains early — either to use them yourself later or to resell them at a profit. However, since the block­chain ecosystem is still mostly a niche when it comes to websites, a tra­di­tion­al domain remains essential for building your own web presence.