So how is it different to traditional domains?

To answer this question, it is important to explain the technical aspects of crypto domains like .wallet. These domains operate in a very similar way to NFTs in that they are smart contracts launched on a particular blockchain.

For example, many of the crypto domains utilise the ERC-721, an NFT token standard on the Ethereum blockchain and Polygon Network.

A traditional domain utilises the standard Domain Name System (DNS), the internet phonebook that turns an IP address into a readable address that we are used to typing in to visit a website, such as Google.com.

This key difference explains both the advantages of going for a crypto domain like .wallet but also points to some of the fundamental challenges people face when using crypto domains. We will touch on these further on in this article and it is important to be aware of these before making any decisions about investing in a new domain, whether traditional or crypto.

Why you might want to go for a .wallet domain

The opportunity to replace your crypto wallet addresses with a simple .wallet domain isn’t the only reason why it is a great idea to buy one of these domains. Let’s explore some of the reasons in a little detail below, to help you understand whether it is the right choice.

Replacing your wallets

A crypto wallet has an address that is by default, a series of numbers and letters. This complicated address can be shared with others to enable you to send/receive cryptocurrency. Every address has a specific blockchain allocation and is unique, in much the same way as a traditional bank account number and sort code.

By getting a .wallet domain, you can replace this troublesome series of numbers and letters that is almost impossible to remember and easy to get wrong. Imagine being able to change to yourname.wallet or yourbrand.wallet and only needing to share this from now on? It makes perfect sense!

Connect to a website

Whilst there are limitations to how browsers connect to crypto domains like .wallet, you can now connect a crypto domain with a website.

By using a crypto domain, you maintain full control over the domain itself, the content and how data is used. Furthermore, you have greater control over how revenue is generated and all of these things are very appealing to those wishing to monetise domains. It also adds value to a domain when trying to trade it or rent it out on a platform like Cloudname.

Continue branding across Web3.0

As more and more people embrace the concept of Web3.0, cryptocurrency and blockchain technology, it is important to think about how to continue/maintain your brand!

It is imperative to note that it is harder to protect branding and IP within crypto domains and as a result, securing your preferred domains early on will help ensure you have more control. You can use a crypto wallet with your brand’s name as a way to take payments, control marketing and revenue and be ready to take advantage of developments as they happen.

Investment opportunities

The secondary domain market is worth billions of dollars and crypto domains are a growing part of this market. For those looking to start an investment portfolio, or add to an existing one then crypto domains like .wallet are a fantastic option.

The growing demand for these domains and increasing interest in investing in cryptocurrency, suggest that the investment opportunities will continue to go up. By getting in there early, you can buy crypto domains and over time sell, rent or tokenize them.

What challenges do people face when using a crypto domain?

With any new technology or advancement in the digital age, there are challenges and pitfalls to be aware of. This is particularly important as crypto domains are still in their infancy compared to the traditional domain system. Whilst some of these challenges do present fairly significant barriers, it is highly likely that there will be solutions developed over time as Web3.0 is integrated into more of the day-to-day internet experience.

Let’s look at three challenges to be aware of:

Lack of widespread understanding

The first point we do need to make is connected to our comment above that the crypto world is still in its infancy. There is still a degree of suspicion held by many members of the public and this is in part because there is a lack of understanding.

Until this understanding is improved and more people embrace the crypto world, there will be challenges with using crypto domains like .wallet because not as many systems and services will integrate with it.The expansion of the cryptocurrency universe in recent years has led to a transformation of the domain name industry that we have been exploring in recent articles. We can no longer simply consider the idea that domains fall under one type or that they are solely used to connect a website to the internet.

One of the unique new uses of a Web3.0 domain name is it can be a shortener and easy to remember name for your long cryptocurrency wallet number. You give out this address to receive crypto and tokens, verify identity and record assets on the blockchain.  Of the different extensions available across multiple Web3.0 domain systems, .wallet is a natural fit for this new use, a natural language crypto wallet address   With a .wallet you can have money sent to mycrypto.wallet, or test123.wallet etc.

.Wallet domain name addresses can be minted and originated at Unstoppable Domains and sold in the aftermarket on Cloudname.  They don’t have renewal fees.

Crypto domains (also referred to as Blockchain domains or NFT domains) utilise blockchain technology and according to one of the leading marketplaces, UnstoppableDomains, they alone have registered more than 2.3 million domains! Despite there still being some significant restrictions on utilizing them in the same way as a traditional domain, interest is growing and it’s important to understand why.

Today we are going to explore the .wallet domain. Not only is this a specific crypto domain but it also offers a fantastic case study for understanding the link between crypto domains and crypto wallets.

What is a .wallet domain and how is it different to other domains?

A .wallet domain is one of the new crypto domains launched in the last few years, alongside others like .crypto, .nft and .coin. This new type of domain has some very specific characteristics not found in traditional domains like .com and .co.uk. These characteristics include:

• – One-time purchase: When you purchase a crypto domain, it becomes yours permanently unlike traditional domains. You no longer have to pay renewal fees or be beholden to the rules set by the registrars.
  
  
• – Full ownership: As highlighted above, as a result of buying it outright then you have 100% ownership over your domain and how you use it.
  
  
• Connect multiple crypto wallets: Depending on the crypto domain you get, you can connect multiple wallets to it. This means you remove the need to share multiple long, complicated sets of numbers/letters and reduce the risk of the wrong details being given. It also becomes a far more marketable and brandable address.

If you’d like to read our introduction to Web3.0 domains like .wallet, please take a moment to explore this article from our blog section.

Special browser requirements

Not every browser supports crypto domains and the vast majority that do support it, require you to use some kind of add-on or change of settings.

Both the Brave and Opera browsers will work with crypto domains by default, but the main browsers such as Google Chrome and Microsoft Edge have limitations. There are many guides out there on how to enable access, such as this one and it does help you get around some of these particular challenges.

Limit on crypto TLDs right now

Whilst this isn’t currently a huge limitation or challenge to those wanting to use a crypto domain, as they become more popular it will mean it will be harder to find that perfect domain. There are only a handful of domain extensions available right now, as highlighted in this article and as interest grows in this field, it will be important for there to be more introduced.

This is a similar struggle faced with traditional domains but if you get creative, you can normally find a suitable domain for your personal project or business name.

Other crypto domains that you can use for your cryptocurrency wallet

Whilst the .wallet domain is the focus of this article, there are in fact a series of crypto domains available to those who are interested. Some of the crypto domain extensions on the market right now include:

• – .crypto
• – .coin
• – .x
• – .bitcoin
• – .nft
• – .888
• – .dao
• – .zil
• – And more are being launched all the time!

In late 2021, it was announced that traditional domains that use the DNS would be able to be connected to cryptocurrency wallets. This has opened up countless possibilities for a branded, easy to remember wallet address for you to share with people.

What other domain types are there if you don’t want a crypto domain?

As a result of the expansion for crypto wallets to use traditional domains, we believe it is relevant to take a quick look at the other domain types available. These are what we refer to as the traditional domains but in reality, they have evolved in recent years to include a much wider array of creative options.

Generic TLDs (gTLDs)

The original set of domain extensions was created decades ago, with .com still having by far the largest market share. These domains also include .org and .net and combined offer people a more trustworthy domain address.

New Generic TLDs (new gTLDs)

With the internet becoming increasingly popular over the past few decades, there was a clear need to expand the number of domains that are available. This is where the new gTLDs come into play.

These include options like .blog, .tech and .xyz and have exploded in popularity. By allowing people to get more creative, take advantage of name hacks and find a more suitable domain address, they have revolutionised domain naming conventions.

Country-code TLDs (ccTLD)

The concept behind this type of domain is that it is linked to a specific country. Originally allocated to a country (for example the domain .co.uk is for the UK), some of these have been appropriated by different industries, turning them into a more specific gTLD.

The primary reason for choosing a ccTLD is if you were looking to operate a website in a particular geographical location.

Summarising our original question

By now, we hope you’ve developed an understanding of what a .wallet domain is and where it sits within the world of traditional and crypto domains. Fundamentally, it is a fantastic choice for those wanting to utilize a much more user-friendly, brandable address for their crypto wallet but it also offers potential investment opportunities for domain traders.

Explore our domain marketplace at Cloudname to see which .wallet domains are available, as well as a wider range of other domains to buy, sell and rent.