What Are Blockchain Domains And How Do They Work?

What Are Blockchain Domains And How Do They Work?

In a similar fashion to your email address, a blockchain domain is a very easy-to-remember address for sending and receiving crypto.

Rather than just having to copy and then paste long, complicated crypto addresses such as bc1qw508d6qejxtdg4y5r3zarvary0c5xw7kv8f3t4 you can merely type in a blockchain domain like brad.crypto so reducing the stress of sending your crypto to the incorrect address.

Blockchain.com currently supports sending crypto to blockchain domains from Unstoppable Domains, Ethereum Name Service (ENS), and Yat.

What Are Examples Of Blockchain Domain Endings?

Rather than the usual TLDs we see like .com, .org, .info, and .xyz, blockchain domains utilise the following TLDs:

  1. .888
  2. .bitcoin
  3. .blockchain
  4. .coin
  5. .crypto
  6. .dao
  7. .nft
  8. .wallet
  9. .x
  10. .zil

How Do Blockchain Domains Function?

Just as how domain names were invented because individuals found that remembering long strings of IP numbers difficult, blockchain domains deliver a human-readable name for crypto-wallets.

For instance, Ethereum Blockchain developers created the Ethereum Naming Service (ENS) in order to allow fir the registering of .eth names on the Ethereum Blockchain. So the question is why would individuals register a blockchain domain? Well, a major reason is that it converts a hexadecimal number into a far simpler-to-remember name. Do you want proof? Which one of the below addresses is simpler to remember?

0x78743110A1B17c86cH43g09853c0vb2836c205 or Comlaude.eth.

Blockchain domain provider Unstoppable Domains becomes unicorn amid crypto  mayhem | Business Insider India

What Are The Benefits Of A Blockchain Domain?

A traditional website domain such s that belonging to ZAR Casino South Africa will be rented from a registrar. For the time of the rental duration – normally one year – the registrar registers the domain in your name with ICANN. In order to continue utilising the domain, you have to pay an annual fee. Else, the domain is released to the public again. Blockchain domains, conversely, are not leased, but bought. The purchase is registered in the ledger and the owner stays in possession of the domain until they make a decision to sell it.

As the entire blockchain system is decentralised, no single organisation (such as ICANN or registrars) can exercise control over a domain once it has been sold. Only an owner can effect changes. And this is why a domain cannot be blocked, for instance. In addition, websites with blockchain domains exist on the InterPlanetary File System (IPFS) – a decentralised alternative to the World Wide Web. Because the website is not provided by a single server, however, is in turn located in the blockchain, it cannot be blocked or censored.

Strategies To Look At In The Next 12 Months

Thousands upon thousands of brand names have already been kept in the blockchain world. Brands who are looking to get in on the action are discovering that their names have been taken by cyber squatters.

As registrants are anonymous, and without a formal reclaim procedure, brands are left wondering how to negotiate with an owner. A blockchain domain that matches a famous brand name, attached to an unauthorised wallet, is a big risk. Thus, in the short term, securing just key brands in the major blockchain is a good and cost-effective strategy.

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