Abstract
Blockchain is a decentralized ledger (DLT), and no single central server can take complete control of its information. Blockchain networks will likely form the infrastructure and foundation of the future Internet.
As a result, blockchains now offer various naming services for users to provide a simple and readable address for their wallets. Blockchain escrows are addresses like email addresses that send and receive digital currencies.
These addresses are stored in a public ledger, accessible, and purchased with a smart contract. This article introduces five of the best blockchain domain name services with a brilliant history in third-generation web domains.
Introduction
Web3 Domains are new extensions launched as “smart contracts” on public blockchains. Web3 Domains are stored in a wallet by the owner, much like a cryptocurrency, and no third party can take them away.
How to Purchase a Web3 Domain Name, and How Does it Work?
Blockchain domains are technically non-fungible tokens (NFTs) that the owner can use in the metaverse; once created, it remains in the wallet forever, and it is impossible to remove them. Of course, interested people must pay a fee to renew some of them.
Buying a blockchain domain is usually straightforward, but depending on the type of blockchain, it can sometimes be complicated.
For example, to get a domain name from Ethereum Name Service (ENS), users must have Ethereum, find their desired “domain name,” and buy it from a market. After getting the domain, they need to mint it, which will probably have a high fee. The demand for blockchain domains is high, so their prices constantly increase.
Introducing 5 Blockchain Domain Name Services
1. ENS domains
Ethereum Name Service, or ENS, is a decentralized and open-source organization that converts the long and complex addresses of the Ethereum blockchain into shorter, easier, and more readable addresses. ENS allows users to choose a unique name, such as “Minerium.eth” for their address, instead of using 42 hexadecimal characters (a combination of numbers and letters).
Considering the significant growth of the sales volume of NFTs since the beginning of 2021 shows that ENS domains are the most famous and best-selling domain names of Web 3. In January 2021, the transaction volume of user domains was $558,344.
Also, in May 2022, when traders were looking for three- and four-letter ENS domains, the volume of transactions in this collection reached $44.3 million in one month; However, in December 2022, this sales volume decreased to 4.9 million dollars.
2. SPACE ID
SpaceID is a global name service network built on the Binance Chain. The purpose of this network is to connect people, information, assets, and applications in the digital world. SPACE ID is chain-agnostic, which means it is not limited to a specific blockchain. This network is entirely decentralized and implemented in peer-to-peer networks with the help of blockchain technology.
SpaceID is anti-censorship and cannot be censored or controlled by central authorities or institutions. The code of this network is open source, and anyone can use it or contribute to it. SPACE ID domains launched in July 2022. Since its launch, sales of these domains have increased and peaked in September 2022.
3. Unstoppable Domains
“Unstoppable Domains ” was created to bridge the gap between Web 2 and Web 3 and connect these two domains. This service allows users to have a domain name on the Polygon blockchain platform. These domains’ extensions are “. crypto” or. “zil.”
The Unstoppable Domains service converts complex and lengthy addresses of digital currency wallets into convenient and readable names. As a result, it becomes easier to use decentralized applications and exchanges with them.
4. NEAR Names
NEAR Names are NEAR blockchain web’s three domain names. Like other blockchain domain names, these are also a type of personal web address built on the NEAR protocol. These domain names are decentralized and controlled by the user community of the Neyer Network rather than a large central company.
This service converts your “smart contract” address or public key in Near blockchain to more convenient and human-readable names. You can use these names to build websites, access decentralized applications, and connect your wallet to these platforms.
NEAR Names trading started in July 2020, and during March 2021, with the record f trading 15,478 domain names. As of September 2021, more than 416,231 Nyir domains have been bought and sold by 12,046 traders, indicating their accumulation by whales. As of December 2022, 6,132 traders have traded only 13,078 domain names, indicating that traders are no longer considering these names as an investment.
5. Tezos Domain Name
Tezos Domains is an open and distributed naming system that uses the Tezos blockchain. The primary purpose of the Tezos domain service is to translate a user-friendly alias to the corresponding Tezos address and vice versa. This system stores the domain names on the Tezos blockchain.
Open-source, peer-reviewed smart contracts ensure that sending assets to a Tezos domain name is done with the same security as sending to regular addresses.
Tezos’ names are FA2-compliant NFTs, meaning these tokens have a sole owner and controller. These names are stored securely in the users’ wallets; only the owner can move and manage them.
Trading of Tezos domains started in April 2021, and their sales volume peaked in September 2022. In April 2022, the NFTs trading volume record touched $465,457. It is interesting that in January 2022, Tezos domain sales reached 82,768.
Conclusion
Blockchain domain names are a new feature in web3 that makes it easier for us to use cryptocurrency platforms and decentralized DeFi applications. Web 3 domain names are short, simple, human-readable addresses that long, complex blockchain addresses can replace.
Blockchain domain names are much easier to remember and use than regular wallet addresses. In recent years, various services and platforms have been launched to provide domain name services to users of the cryptocurrency space.