Blockchain Domains

Blockchain Domains Domain News Africa

What are Blockchain Domains?

Blockchain domains are essentially suites of smart contracts, software written on a public blockchain. They can work as a naming registry for crypto wallet addresses, for example, or they can point to content hosted on the blockchain, like a website.

Blockchain domains are based on an alternative name resolution system. While they’re not yet ready for mass use, the development of blockchain domains promises interesting advantages. First and foremost: With blockchain domains, you can purchase a domain instead of renting it.

How do Blockchain Domains work?

When a domain is entered in a browser, the Domain Name System (DNS) ensures that the desired website is accessed. For this purpose, the ICANN registry centrally manages all domain names. For each registered domain, the IP address of the corresponding web server is available. If we enter the URL, the DNS searches for the matching IP address and displays the site.

Blockchain domains, on the other hand, work in a decentralized way. So, there is no single place where the whole system converges as with DNS. Blockchain technology is already being used in cryptocurrencies to store every transaction in the ledger. This ledger – essentially a long list of data – is not just on one server, but is distributed from different places. This means that users can track the different transactions, even in the long term, which renders the system tamper-proof.

Blockchain domains follow the same idea. The ownership of the domain is stored in the blockchain. Instead of calling up a central database when a website is visited, the browser can search the ledger to see which services are associated with the domain. So blockchain domains are actually Non-Fungible Tokens (NFTs), which is why the new technology is also called NFT domains.

Blockchain domains aren’t stored on a server. They’re held in the public registry, on publicly accessible blockchains.
This means anyone can look at the records, providing an impressive level of openness and transparency. On top of that, users can benefit from enhanced security — each user holds the permissions to make updates to their domain name, which minimizes worries about servers getting hacked or domain names getting stolen.

Blockchain domain decentralized Domain news Africa

Advantages of a blockchain domain

A traditional website domain is rented from a registrar. For the time of the rent duration – usually one year – the registrar registers the domain in your name with ICANN. To continue using the domain, you need to pay an annual fee. Otherwise, the domain is released to the public again. Blockchain domains, on the other hand, are not leased but purchased. The purchase is entered into the ledger and the owner remains in possession of the domain until they decide to sell it.

Since the entire blockchain system is decentralized, no single organization (such as ICANN or registrars) has control over a domain once it has been sold. Only an owner can make changes. And that’s why a domain cannot be blocked, for example. Websites with blockchain domains also exist on the InterPlanetary File System (IPFS) – a decentralized alternative to the World Wide Web. Since the website is not provided by a single server but is in turn located in the blockchain, it cannot be blocked or censored.

Use of blockchain domains

Blockchain domains provide some of the same possibilities as classic domain names, but they go even further.

Website: As with traditional domains, you can make your website available via the blockchain domain. Websites are decentralized and are hosted via the blockchain.

Wallet: The domain is a great option to replace otherwise bulky personal crypto wallet addresses. Different addresses for different marketplaces can be bundled under one address.

Trading: Classic domains are traded. However, since blockchain domains are in principle NFTs, they are predestined for trading. Due to the system of smart contracts, the process of buying and selling is simple and secure.
Apps: Software can be built on domains. Development platforms and frameworks are available that are specifically designed for blockchain apps.

So far, blockchain domains and the corresponding websites aren’t widely used which is due, in part, to the fact that not every Internet user can access the domains directly, because browsers must be able to support the technology. Opera does this out of the box; for Chrome and Firefox, however, you need to install add-ons.

Nevertheless, a few businesses have already begun to secure their blockchain domains. The Budweiser brewery, for example, purchased beer .eth. It is likely that Web3 and thus blockchain domains will become more popular over time and it may make sense to buy a suitable domain now while they’re still available at a reasonable price.

About domainnewafrica

We Pride in bringing you the most updated domain industry news and events as they happen both locally in Africa as well as Globally.

Leave a Reply