Complete Guide to Web3 Domains
Web3 domains, sometimes known as NFT domains, are the blockchain equivalent of DNS addresses. Web3 domains take what we know about traditional domains to the next level and have a multitude of use cases. One of the key things is that they are decentralized and can be traded like an NFT. In this article, we’ll dive into everything you need to know about Web3 domains.
Table of Contents
What is a Web3 Domain?
Web3 domains are a service that provides users with decentralized crypto domains. These blockchain-based addresses are the Web3 equivalent of a Domain Name System (DNS) address, which is how we commonly access websites such as Wagmi.tips on the internet.
Web3 domains, also known as NFT domains, use blockchain technology to make domain name registration and resolution completely on-chain. Users are able to register unique, easy-to-remember domain names which can replace their wallet addresses and decentralized websites (DWebs). Registering a Web3 domain would require a registrar such as Ethereum Name Service (ENS) and Unstoppable Domains.
Are Web3 Domains NFTs?
In short, Web3 domains can be traded like NFTs on any platform where NFTs are offered, such as OpenSea. Web3 domains exist on the blockchain as an ERC-721 token and thus, can be traded like NFTs.
Types of Web3 Domain Extensions
Web3 domain name extensions refer to the suffix in a URL – for example, john.wallet has the .wallet extension. The extensions that are available on Unstoppable Domains are geared toward specific communities. For example, .nft is aimed at the NFT community while .bitcoin is aimed at Bitcoin users. However, you can register a domain with whichever extension you like.
Are you looking for the complete Web3 domains list? Here are some examples of popular web3 domain extensions:
Solana domains are a type of web3 domain which is based on the Solana blockchain. These can be registered on Bonfida which is known for offering Solana-based products.
Domains registered on Bonfida have the .sol extension. Solana domains have the same uses as any other web3 domain – they can be used as a wallet address, traded or collected like an NFT, and can be used like a website. In addition to that, Bonfida offers users the option to get verified by linking a Twitter handle to their domain address.
You can also find Solana domains on sale on Solana NFT marketplaces. A popular Solana NFT marketplace is Magic Eden which is currently the leading marketplace. The platform has nearly 900k traders, so you’ll be bound to find a good Solana domain for your needs.
Check out our article How to Buy Solana NFTs on OpenSea if you need a more detailed guide about buying Solana domains.
Uses of Web3 Domains
The primary use of the Web3 domain is to map crypto addresses or metadata to a shorter domain such as “john.wallet”.
Wallet addresses such as those for Ethereum are long and comprised of hexadecimal codes. The problem with this is that in order to receive crypto such as ETH, the wallet address needs to be copy-pasted as the 42-character address is difficult to remember and consistently type accurately. A missed alphabet or number would mean that the funds will not be transferred to the correct wallet.
This is what web3 domains can fix. Essentially, web3 domains are human-readable, with easy addresses such as “john.wallet”. Users are able to map their cryptocurrency wallets to this shortened domain which makes it much easier to send wallet addresses.
Aside from this, decentralized websites (DWebs) can also be mapped to web3 domains which means that a user can simply link to their web3 domain for someone to access their DWeb address. The advantages of using a web3 domain over a DNS domain are that web3 domains are decentralized, more secure, and future-proof. It also affords the website owners more privacy as they can be registered anonymously.
Where to Buy Web3 Domains
There are two popular registrars for web3 domains, Ethereum Name Service (ENS) and Unstoppable Domains.
To register an ENS domain, first you can look up ENS names or addresses on the ENS App. If your desired address is available, proceed to Request to Register, pay using your MetaMask wallet, and approve the transaction.
The process is similar on Unstoppable Domains – simply look up your desired address to see if it’s available, hit Add to Cart, then proceed to Checkout. From here, you will be given the option to connect your wallet and proceed to payment.
To use your new domain as your wallet address, each domain registrar will have instructions on how to use it. You have to set a public resolver, bind your old address to your new ENS domain, and you’re set to use your new domain!
NFT domains purchased on Unstoppable Domains only require a one-time registration fee while ENS domains impose an annual renewal fee.
Web3 Domain Research Tools
Similar to DNS addresses, a memorable domain name can become a great investment – you can use it for your business or sell it for a profit. Check out our ENS Domain Tool which helps you find good domains to register. This is a great tool for doing market research on which domain names are top-sellers, popular, and available for sale. You could also use ENS Vision which allows you to look up and trade ENS names.
Frequently Asked Questions
It is the crypto equivalent of a DNS domain which allows you to shorten your crypto wallet address to a simplified web3 URL, among other uses.
The most popular web3 domain registrars are ENS and Unstoppable Domains.
Depending on the length of the domain address, it can vary from $40-20,000. Addresses with more characters will be cheaper to own.
This depends on your registrar. ENS domains have an annual renewal fee but domains registered on Unstoppable Domains do not.