Over the years, internet users have relied on a lot of familiar things, and many of the elements we encounter when browsing websites have become so common that we often overlook them. Recently, though, we’ve seen a rise in fake websites that look almost identical to the real ones. I’m sure you or someone you know has encountered these dangerous, deceptive sites. But now, there’s a new solution: domain NFTs. These domains are much safer and more secure than traditional ones. Want to know how they stack up? Check article below, or if you’re interested in a quick comparison, just scroll down. You’ll find a table at the end!
What are traditional domains?
A traditional domain is a recognizable web address that you can use to access websites, like www.example.com. It works through the Domain Name System (DNS), which translates easy-to-remember names into numerical IP addresses that computers use to communicate with each other.
Imagine you want to visit a bakery’s website. Instead of typing in a complicated set of numbers, you just enter www.yourfavoritebakery.com into your browser. The browser then uses DNS to find the correct IP address and connect you to the bakery’s site.
While traditional domains are widely used, they don’t automatically guarantee safety. However, there are advancements, like Self-Authenticating Traditional (SAT) domains, that add security features directly into the domain name, making connections safer and less vulnerable to attacks. This means that when you see a SAT domain, you can trust that it’s secure without needing extra steps to confirm its authenticity.
What are Domain NFTs?
Domain NFTs live on public blockchains, giving users full ownership of their data. They simplify crypto transactions by replacing long wallet addresses with easy-to-remember domain names. Plus, they make it simple to create and host websites on Web3.
Where do we get Domain NFTs?
Popular services like Ethereum Name Service (ENS) and Unstoppable Domains let users have crypto addresses as NFTs. With these services, you can change your complicated numeric address into a simpler and friendlier domain name. For example, instead of a long string of numbers, you could use something like myname.crypto or myname.eth. Just like social media handles, each name is unique.
The Ethereum Name Service (ENS) allows you to represent traditional addresses—like wallet addresses, hashes, and website URLs—with a simpler format that ends in .eth. You can buy and mint ENS domains directly on their platform or trade them on secondary markets like OpenSea.
In April 2022, a numeric ENS domain called ‘555.eth’ sold for 55.5 ETH, which was worth over $160,000. This sale made it one of the most expensive ENS domains ever sold. A Chinese collector bought it just for fun during a surge of interest in numeric ENS domains.
Before that, Unstoppable Domains sold the blockchain domain NFT ‘win.crypto’ for a record $100,000 in March 2021. This sale was one of the first big deals that showed the growing interest in NFTs beyond just digital collectible art.
Advantages of Using Blockchains for Domain Name NFTs
Authenticity and Provenance: Blockchains track the ownership and movement of domain NFTs, creating a clear record that proves the authenticity and history of the domain name. This adds transparency for everyone involved.
Ownership and Control: Because blockchains are public and unchangeable, NFT owners can easily verify that they own their domain name and can transfer it whenever they want. Plus, the content on a Web3 domain is decentralized, meaning the holder completely owns it.
Accessibility and Networks: Storing and transferring domain NFTs on a blockchain makes it easier to buy, sell, and own them. A domain name NFT can also give owners quicker access to their crypto wallets since they can replace complicated wallet addresses with their domain names.
To sum up, here is a table highlighting the key differences and similarities between traditional domains and domain NFTs:
| Feature | Traditional Domains | Domain NFTs |
|---|---|---|
| Definition | Recognizable web addresses (e.g., www.example.com) that allow access to websites. | Unique digital domain names stored on blockchains (e.g., myname.crypto, myname.eth). |
| Ownership | Typically owned through registration with domain providers (e.g., GoDaddy, Google Domains). | Fully owned by the user, with no central authority involved. |
| Payment Model | Often requires annual renewal fees. | Usually a one-time purchase without renewal fees. |
| Operation System | Works through the Domain Name System (DNS) to translate names into IP addresses. | Operates on public blockchains, simplifying transactions and ownership verification. |
| Security Features | Standard domains do not guarantee safety, though SAT domains add some security features. | Built-in security and authenticity, making it hard for others to hijack or censor. |
| Use Case | Commonly used for websites, businesses, and personal pages. | Ideal for crypto transactions and web3 applications; can replace long wallet addresses. |
| Customer Experience | Can require complicated IP addresses or long numerical strings. | Offers easy-to-remember names and a more user-friendly experience. |
| Trading | Usually traded through domain registrars or auction sites. | Can be bought, sold, and traded on blockchain marketplaces (e.g., OpenSea). |
Will more websites switch to NFT domains in the future? We’ll have to wait and see. But with the overwhelming advantages presented, it might come sooner than expected.
