When I first heard about crypto domains, aka NFT domains, I was kind of confused. And after over $600, I’m a little closer to understanding what they are. In this article, I will answer the question as best as possible.
Answer: Crypto Domains, also called NFT Domains, are human-readable addresses for cryptocurrency and crypto-token wallet locations. NFT Domains have the same relation to wallet addresses as domains have regarding IP addresses. The technology uses smart contracts to execute and save the blockchain location or information in an easy-to-remember and use format.
If you still don’t get it, that is understandable. Keep reading, and by the end of this article, you should have a good understanding of Crypto Domains, aka NFT Domains.
I welcome you to leave a comment.
Another exciting way to describe what is happening here is how NFT domains differ from traditional domains. ICANN governs traditional domains, and you must register with a registrar. Each registration comes with a yearly fee. Crypto domains do not have this annual fee. Instead, crypto domains are held by the individual in their wallet on their computer or phone. You can also store crypto domains, called blockchain domains, in cold wallets.
If you want a better understanding of how this is possible, it might help to know how cryptocurrency works. Read my article: What is Cryptocurrency?
Once you realize that ICANN is a central authority acting as a trusted authority, you can see how anyone can use cryptocurrency technologies to remove this arbitrary cost from the system of domains.
What Is a Blockchain Domain?
One of the first confusions many people have about crypto domains is they are different than blockchain domains. The simple answer to this is yes. Blockchain domains are a subset and TLD of NFT Domains owned by Unstoppable Domains. Each domain TLD, in this case, is some word. Without complicating things in this article which I want to keep simple (read this if you’re going to get into the nitty-gritty details: What is Handshake? – coming soon), you should think about these as separate things. However, many people use these terms interchangeably when they first learn about NFT domains.
Currently, Unstoppable Domains has 9 Blockchain NFT Domain TLDs. However, you will quickly find several other alternatives if you look around. ENS’s .eth and handshake are two examples of alternative domain naming systems based on blockchain.
Why Would I want a Crypto or Blockchain Domain?
Unstoppable Domains is a marketplace of domains covering 9 TLD Blockchain NFT Domains. They are working hard to bring this technology to the world and make it easy for everyday people to get started in crypto or host a website on crypto.
But we want to know if getting a blockchain or crypto domain is the right choice for you. Here are some questions that might help you think about this:
- Do you have crypto wallets:
You will need at least one crypto wallet to claim a domain unless you use the Gemini Custody network offered on the Unstoppable Domains dashboard. I don’t know the details yet, but I will update you with an article soon. - Are you trying to become uncensored?
Censorship is a big topic, and blockchain domains hold a lot of promise to get around censorship. However, this still seems to rely on things that might make this less than ideal. I’m still learning and will update as I know more. - Do you want to be the latest and greatest?
For me, I like being an early adopter. I enjoy learning and teaching others the new and cool things I found. Sometimes this has gotten me into trouble, but now and again, it pays off. Suppose you like being early in a process and don’t mind waiting for what seems like a very long time. Then Blockchain Domains may be a good option. However, they are still very speculative.
As I get further in the process of getting my own crypto domain or 50, I come up with more and more ideas for potential uses. I will update you with new info as I have it. I hope that was helpful for now, and if you didn’t mind leaving a comment, I would appreciate it.
What Else Should I Know?
- You own your domain forever. Actual ownership and not a “rental.” It is similar to having a property deed without land ownership taxes.
- Storage and security are on you. There is no central authority to govern and control the domains. If someone owns your copyright or trademark in a blockchain domain, getting them to give it up to you might be near impossible. This is good because ICANN or your registrar can no longer decide who should own a domain. However, this is bad because there is no oversite once the domain is created and tied to a wallet.
- These central points of contact might be straightforward to track. However, see #4
- It might be possible to own and use these anonymously. I will write a guide on this as I spend more time with the system.
- It is/can be expensive. For me, I waited months to do my transfer because the fees were so high. What I ended up doing, entirely by chance, is committing to doing it on the highest fee night seen in a while. It wasn’t enjoyable but rewarding to see the task completed.
- There is a solid re-sell market, but I think it is far too early to be flipping domains. To me, it seems like the right time to buy and hold.
There is so much more to cover. But only so much time in the evening.
*UPDATE*
Check out this video where I show how to do a layer 2 claim: