What are decentralized domains and why are so important?
Are decentralized domains good investment?
Why we need decentralized domains?
Todays internet WEB2 is connected to big datacenters which are operated by large corporations, ISPs (Internet Service Providers) or governments. This means that all clients that uses Facebook, Youtube TikTok or any other website or platform are connected to one central server, like Google and Amazon AWS, that delivers the content to your phone or computer.
WEB3 is transforming internet services in all aspects, but the most important things are decentralization, data ownerships, censorship resistance, privacy and gives users part-ownership of the network with no mediators in the process what so ever.
I’ll give it example of todays internet and WEB3, let’s say that Bob want to text his best friend John a private message, what really happens is that, when Bob sends the the message first goes to the app provider, than to the host of the central domain, so it could reach the final destination which in this case is Jack’s phone. So next question arises, what will happen if Bob want to send message to Jack using messaging DAPP like Status? If, Bob sends message to Jack using Status (messaging service on WEB3) it will go strait to Jack, with no central mediators, because DAPPS are build on public blockchain, thus it can not be censored or shared from another party. This is the reason why we need decentralized web with all decentralized services.
The decentralized WEB3 has few categories: Web applications or DAPPS, web hosting, search engine, storage, domain name systems, NFT platforms and DeFi protocols, all of them are decentralized, this means that, no single entity or group have ownership of users data. Every user is in full control of their own data.
Decentralization is the first key element of Web 3.0, because information would be found based on its content, it could be stored in multiple locations simultaneously and hence be decentralized. This would break down the massive databases currently held by internet giants like Facebook (now Meta) and Google, and would prevent their undue enrichment by handing greater control to users. With Web 3.0, the data generated by disparate and increasingly powerful computing resources, including mobile phones, desktops, appliances, vehicles, and sensors, will be sold by users through decentralized data networks, ensuring that users retain ownership control.
Standard domain name system (DNS) addresses like tokenpaddock.com are different from Web3 domains. A DNS is like a phone book, but instead of listing phone numbers, it indexes public websites and the IP addresses that go with them.
Unstoppable Domains is probably the most popular provider of decentralized domain name systems. Unstoppable Domains stores these domains as NFTs on the Ethereum blockchain. Users can control their NFTs from any NFT ready wallet. Decentralized crypto domain are readable address for your crypto wallet on exchanges like OpenSea, these Web3 domain names can be traded as nonfungible tokens (NFTs) or digital certificates of validity. Additional Web3 domain extensions include: .crypto,.dao, .bitcoin, .nft, .blockchain, .wallet, and .x and .888
There are key things that we need to know when we are buying decentralized domain:
- NFT domains are owned not rented. Buying domain is easy, with a one time registration fee and there isn’t renewals ever again.
- The domain is stored in your hot-wallet, just like a cryptocurrency. You are the only and true owner.
- Point your domain to content on a decentralized storage network.
Another popular decentralized domain name service is ENS, which can be used for decentralized naming for wallets, websites and can be paid in their ERC-20 native token ENS. This Web3 domain native name suffix is .ETH, but also you can use ENS with DNS names you already own, like: .com, .org, .io, .app, .xyz and .art
For many people WEB3 is far from becoming mainstream given the size of the big tech monopolies, however the decentralized web is coming and it is in many areas faster than expected.
Buying Decentralized domains can be good investment, as we are going towards web3 future, there will be more demand for decentralized domains, as more users are transferring from WEB2 to decentralized WEB3, so that being said, yes decentralized domains can be also good investment for the future.
DISCLAIMER: Content of this website references an option and is for information purpose only. It is not intended to be investment advice. Seek a licensed professional for investment advice.