Why the ‘craze’ about crypto domains?
Everywhere you turn on Twitter, for instance, you see people’s usernames with something like .eth, and you are wondering; what’s up with these people? Have you ever encountered such a thing? Find your way to an NFT section on Twitter if you haven’t, and you’ll experience this first-hand.
Moreover, it’s quite understandable that ever since the inception of Cryptocurrency and then the recent emergence of Web3, the world and Internet has taken a decentralized turn. Decentralization and anonymity is the gift that comes with cryptocurrency among other things.
The crypto domain, which includes the blockchain, is the next big thing as blockchain (the system that controls cryptocurrency) continues to thrive and gain more audience. The Crypto domain provides a secure and transparent method for recording and tracking data across a distributed system.
Freename and Cloudname domain are the two top Web3 naming systems where you can mint your domain name. Freename has a multi-chain approach that enables you to choose whatever blockchain you want like Polygon, Cronos, and even Binance. You can even create your TLD and earn it whenever someone else uses it. It is a flexible domain name generator.
Moreso, the new blockchain domains, also known as crypto domains, differ significantly from traditional registration service providers in that their data is fully auditable, secure, and up-to-date in real-time, thanks to the distributed ledger.
Most people still don’t understand what cryptocurrencies are or how they work. Let’s solve this question first before we answer the main question, “are crypto domains a good investment?”
Why do you need a Crypto Domain?
This section of the article will help you understand the importance of a crypto domain. You will get a full understanding of its profitability. Blockchain or Crypto Domain is an exciting innovation in the distributed Web3 environment. Since the domains are recorded independently in the blockchain, they are not a part of ICANN’s centralized Domain Name System (DNS). You can easily access a Crypto Domain just like how you access your Web2 websites as long as it is a supported Internet browser.
There are different applications for blockchain or the crypto sector, and crypto domains are very useful in various contexts, such as logging onto many online services with a single username and password.
In addition, Crypto Domains can also function as cryptocurrency payment addresses. A crypto domain can serve as a URL for a website. They are more than just a website’s address; they have many other applications. One crypto domain, for instance, can serve as the umbrella for several Bitcoin addresses.
Crypto Domains as Crypto Wallets
Using this method simplifies working with cryptocurrency. Compared to when the blockchain addresses used to be long strings of numbers and letters, it was quite easy to make errors. Those could be really costly. Now, crypto domains have reduced the rates of making mistakes in that area.
Your blockchain domain is automatically mapped to its corresponding blockchain crypto address as soon as you enter it into a compatible wallet. Crypto Domain is supported by many popular wallets, and the two can easily be matched. It can also be used to create standard websites. In any case, you or your customers will require another DNS resolver, as the browser will need to be instructed to query a new DNS server.
Moreover, browsers such as Opera and Brave have already implemented this feature, making it simple to access both Freename and Cloudname Web3 (NFT) networks.
Also, Freename, the hub for top-level domain (TLD) names, usually keep an IPFS hash and publish it to the blockchain. Thereby resolvers can determine which files to load when a domain name is queried.
Are crypto domains costly?
Taking the Freename domain as our case study, the prices for crypto domains start from a few tens of dollars and it embraces a one-time payment. There is no renewal fee attached to it. Unlike ENS and unstoppable domains, it has a flexible naming system.
This is a prerequisite to answering the main question, “are crypto domains a good investment?”
In addition, certain domain names, including trademarked names, are off-limits for purchase. You should also prepare for extra costs because adding the domain name to the blockchain costs more. There is an ETH (gas) fee associated with transactions if you are using the ENS network. However, that’s not the case when using the Freename domain generator.
Are crypto domains a good investment?
You can relate a blockchain or crypto domain to an NFT in your cold storage, waiting for the right time and person to purchase it. If you can get your hands on popular domain names from the outset, trading them as NFTs can be a lucrative way to make money. After that, you may list the matching domains on Cloudname to buy and sell as NFT.
Maybe it is high time to consider the crypto domain because it is a good investment. Just bring in your economics A-game of supply and demand, which are big determining factors, just as they are in regular domain trading. One can amass a fortune, though, by purchasing a Crypto domain. Study the market and take calculated risks only.