While Web 3.0. can mean many things, the new Internet starts with Web 3.0. domains. Whether your website is about DeFi, NFTs, Metaverse, or crypto-unrelated. Even if you don’t have a website, Web 3.0. has something to offer that traditional domains don’t.
If you add the Top 5 domain providers, there are over 3M blockchain domains registered. While most of them are NFT investors, Fortune 1000 companies also seem interested. Sometimes paying as much as 230 ETH for a .eth domain (worth around $750,000).
What’s crazy is that many domains like these are still for sale below $100. Is this the crypto version of the dot com bubble? The difference is, Web 3.0. domains have utility for people who neither trade domains nor own a website.
What Are Web 3.0. Domains?
Web 3.0. domains are one of the decentralized web applications of NFTs. They look just like traditional domains, but instead of .com or .net, they use blockchain extensions (e.g., .eth). To avoid confusion, note that Web 3.0. domains can be called these other synonyms:
- Web3 domains
- Decentralized domains
- Blockchain domains
- NFT domains
- Crypto domains
For a proper definition, here are the basics:
- Domains are names that make website addresses readable and easy to remember. Domains are stored on registrar servers and require annual fees to keep active.
- Non-fungible tokens are unique tokens attached to some digital asset. It appears in your blockchain wallet like any cryptocurrency. Owning an NFT allows the blockchain to identify you as the owner of the attached media (a picture, audio, video…).
- Web 3.0. is an abstract term that includes all applications of blockchain to the Internet. These range from infrastructure layers (Bitcoin, Ethereum, Binance Smart Chain) to decentralized applications (dApps). For example, ENS is a dApp that allows you to register NFT domains on the Ethereum blockchain.
You can find examples of Web 3.0. domains on Cloudname:
Web 3.0. Websites vs Domains (With Example)
Web 3.0. websites aren’t exactly web 3.0. domains and they’re neither some hosting service (at least yet). There’s no such thing as Web 3.0. websites. The term refers to traditional websites with Web 3.0. applications.
For example, Uniswap.org is an Ethereum decentralized exchange (DEX). This is the website:
And this is the dApp of the website:
Web 3.0. domains are just another website application, just like the exchange for Uniswap. While they’re not the same, they both need your Web3 wallet to work. Also, one website can have more than one application (e.g., Uniswap could have both the exchange and a Uniswap.eth domain).
Web 3.0. Domains vs Traditional Domains
For a beginner, trading Web 3.0. domains may sound as daunting as buying your first Bitcoin. What you’ll quickly find however is, trading crypto domains is even easier than traditional ones. Here are five factors to decide whether you should get web 3.0. Domains, web 2.0. domains, or both:
You don’t really own a .com domain after buying it. Traditional domains are long-term rentals, and if you don’t pay your annual renovation, it’s revoked. Not only the registrar owns the domain but also the conditions: they can increase rates anytime.
An NFT domain is a token held in your Web3 wallet. As long as you don’t share your private key, nobody can take away your domain. And because it’s permanently public on the blockchain, you don’t pay any fees, only on the purchase.
You may think NFT domains are more expensive for this reason. Ironically, many domains under six letters sell between $20 to $100. Have a look at the Cloudname domain marketplace, where you can sort by price, date, and extension.
While NFT domains save money in the long run, it’s easy to overpay if you’re not careful. When buying on Ethereum (which is 99.9% of the current marketplace), your $20 domain may come with +$100 in fees. To make it worthwhile, you either buy a pricier domain or wait for network congestion to decrease.
Thankfully, multichain domains are in development to solve this problem.
Depending on the name, traditional domains seem cheaper. Sure, you just pay <$50 per year. But if you want a great short domain with resale potential, those can go anywhere from $500 to $10,000 per year!
It’s not just the rarity that ramps up the price but availability.
Think of the perfect domain. That same name might be available on a global blockchain extension for far cheaper. Which also allows the budget to invest in many at once.
If Web 3.0. turns out to be a fad, you’re down a few hundred bucks. But if it changes the world as Bitcoin did, the ROI is unmeasurable. Domains are attached to tokens with long-term potential like ETH, which also increase your resale value.
Besides having more names available, NFT domains are easier to sell:
- Blockchain payments are fast and worldwide available (fiat also available)
- You can list them on UnstoppableDomains and NFT marketplaces (e.g., Opensea)
- You can fractionize them and sell faster with smaller investors
Because Web 3.0. is in development, blockchain domains aren’t as practical as traditional names. The best choice for website owners is to redirect the NFT domain to the main .com. Why?
- Your visitors need a special extension or browser (like Brave) to load your page
- Search engines don’t index blockchain extensions yet
- If you use another device, you need to set up Web3 applications again.
This problem is temporary until all major browsers standardize crypto domains.
While investors look at domain rarity, website owners look at the transactional implications. Maybe it has buyer words like “buyinsurance.com,” maybe it’s a .store extension. And the easier it is to pay, the better.
Both traditional and Web 3.0. domains support blockchain payments, which are secure, fast, and worldwide available. If you own the latter, you could get a name service like ENS. So anyone with a wallet can send money by typing your domain. #imgEns
If you consider this feature, make sure to add more payment methods and blockchains. It won’t help conversions if your customers find $100+ ETH fees.
3 Ways To Buy Web 3.0. Domains
Buying domains is easy. Domain investing, not so easy. There are countless name choices, and the best ones are already taken. You can’t trade them unless you’re high-net-worth.
Web 3.0. domains don’t have those limitations. Because investors actually own their domains, they can offer more buying choices.
Buy and sell domains with more payment methods. Most platforms support USD, USDT, BUSD, WETH, BNB, and utility tokens. Trade Web 3.0. domains within minutes based on real-time prices:
- Visit the domain marketplace
- Find a domain listing you like
- Create your account or sign up with Google
- Enter your billing information
- Select payment (Stripe/Metamask) and coin
- If Metamask, confirm trade from the extension
- Your new domain is now in your account! You might also relist it on NFT marketplaces.
For future trades, it’s even simpler: choose domain, review trade, and confirm on Metamask.
If you own a small website, domain rentals can quickly boost your traffic. Especially if the domain was used before. Depending on rarity and traffic volume, you could rent one from a few bucks to over $1000 per day.
It’s a feature most platforms don’t have built-in yet. Not only it would support crypto-fiat rentals, but also allow you to switch as convenient. And as the domain owner, you’d be able to keep active domain listings while renting.
If you ever thought of investing in million-dollar domains, it’s now possible even for small investors. Specifically, fractionalized domains. Just like you can buy less than 1 Bitcoin, you don’t need to buy the full domain to invest.
- Find a domain that allows fractionalization (set by the owner)
- Enter the number of domain tokens (fractions) to buy
- Select payment method and confirm
Not only do these domains sell faster but improve liquidity for both the owner and buyers.
3 Reasons To Buy Web 3.0. Domains Without Having A Website
While all websites start with domains, you don’t need to start a website to buy one. Not if it’s Web3. Because, unlike traditional ones, blockchain domains share all the applications of NFTs.
As shown on ENS, your domain can be the Google of Web3. Instead of connecting a wallet to a dApp, you just type your domain name (like usernames). Or maybe it’s what clients type to send you crypto payments.
Easy, Fast, Worldwide Payments
Crypto transactions are unreadable. Unless you post your address in some profile description, there’s no way to know who you’re paying. And your address is only visible on the platforms where you share it.
When you buy a domain, you can attach it to your wallet address (e.g., via ENS.domains) to make it easy to remember. Anyone can type your name from any WEB3 wallet, and your address will pop up below the search bar.
If you don’t want to buy ENS, you could also set up a simple payment gateway on a free website.
Another benefit is the so-needed scam prevention on social media. Impostors can no longer fool you with wrong addresses because the real one has the domain attached.
Multiple Liquidity Options
Web 3.0. domains are less risky because of liquidity. Assuming you buy a great name at a low price, at worst, you’ll either break even or sell out. You’re not stuck with a domain you don’t want.
- You can fractionalize domains to reduce sales friction for small buyers
- You can rent domains while listing them on NFT marketplaces
- You can convert them for CName tokens at the appraised value
- You can invest small amounts on domains without buying them
Easy Trade on NFT Marketplaces
Trading Web 3.0. domains is as easy as trading NFTs on Opensea. You click on the listing, connect Metamask, and it’s already in your account. With traditional domains, you’d first need to contact the owner (who may have other potential buyers), negotiate, find an escrow company…
The NFT domain also shows who bought before, when, and how much. These features could further improve resale value. Even if it takes years to sell the domain, you might already be on the green due to crypto’s long-term projections.
The New Internet Starts With Web 3.0. Domains
Domains used to be only for websites. When Web 2.0. came out, these would expand to usernames, profiles, and community content. With the ongoing Web3, your domain can be a website, virtual identity, and private wallet.
Web 3.0. domains aren’t here to replace legacy domains but expand their use cases.
They also bring investment opportunities to both those who can’t buy premium domains and those who own them. Imagine if you could sell a .com name with a .crypto or .eth as a set. Major brands often buy dozens of domain variations as part of their trademark.
It wouldn’t be surprising if domains explode the way they did in the 1990s. Both cryptocurrencies and NFTs are on the rise already. How far can it go, and when?
The best way not to miss out is to get your first Web 3.0. domains.