When compared to classic Web2 setups, NFT domains are a significant improvement. These digital assets energize a wide range of new prospects, providing much-appreciated leeway to those who design websites. Furthermore, they also eliminate the need for data thieves and controllers.
You have no idea what NFT domains are, don’t you? Let’s get the answers you’ve been looking for right here and right now.
What are NFT domains?
The NFT domains refer to a cryptocurrency wallet address that is linked to a non-fungible token (NFT). “NFT” denotes a token that cannot be destroyed. Thanks to its characteristics, the blockchain can attest that you are the rightful owner of this digital asset. This means that instead of allowing a legal entity (ICCAN) to control your website, users will be given this authority.
NFT domains (intense decentralized domain, cryptocurrency domain, blockchain) is a new top-level domain (TLD) that is being released as a smart contract on the public blockchain. Thus, anyone can look up the data stored there, creating a sense of openness and transparency that Web 2.0 lacks.
Like cryptocurrency, NFT domains can only be removed from the wallet by the owner. NFT domains are typically a one-time payment, as opposed to traditional domain web 2.0 business models that rely on annual renewal fees. They are also 100% user-owned, which means that concentrated businesses cannot censor or appropriate your domain.
It’s more accurate to think of buying a Web2 domain as renting it for a certain amount of time rather than buying it outright. Payment of the annual renewal fee will keep the domain name registered for another year, but if you forget to renew it before then, someone else can register it.
How do NFT domains work?
The traditional domains
In the domain traditional Web 2.0 model, rather than buying, you are leasing it indefinitely. You don’t actually own that domain name, but you do have the right to temporarily redirect it to your website, so long as you renew your registration.
Why? ICANN governs the use of generic top-level domains (TLDs) like.com, .net, and .org. Just imagining ICANN as the internet’s version of a security guard. They monitor the Internet’s naming system to guarantee that your website will load when someone types in your domain name in a browser. In other words, ICANN possesses the key to control from one location.
The innovation of NFT domains
Decentralization is where blockchain really shines. The blockchain is used in the cryptocurrency industry because it functions similarly to a public ledger or a bank’s customer records. Because so many people are using their computing resources to add to the blockchain’s power and keep track of transactions, it’s starting to feel like an unstoppable force (hence, the other name of NFT domains is unstoppable domains). When you purchase an NFT domain, it is yours permanently.
So, we have NFT domains, where you can essentially buy something once and keep it forever. And because it is blockchain-based and distributed, nobody but you has access to your domain. That is to say, no higher authority can order your website’s domain name to be taken down.
Why are NFT domains so popular recently?
When compared to the domain Web 2.0 business models, NFT domains offer many distinct advantages to users. And as if I haven’t stressed enough – it’s a one-time payment, and it’s your asset. Does it have any other pros? Here’s a quick of the key features of NFT domains:
Less complicated, and safer
Every computer that is online has a unique number called an IP address. These identifiers are necessary for the online identification of specific devices. It’s just that they’re very lengthy and not easy to keep in mind. A common IP address is 172.217.10.14, which is Google.com. This isn’t going to stick out in your mind, is it?
Using an NFT domain, you can replace all of your wallet addresses with a single, human-friendly name. Keep all your cryptocurrency and payment information in one convenient place by using a single wallet address. With NFT Domains, it’s better and easier to remember because you get to choose the name of the domain you purchase.
It’s also protecting your domains from risks. The NFT domains name you register is stored on the blockchain, making it theoretically as secure as the blockchain itself.
Perform cryptocurrency transactions
The domains can be purchased, sold, and held similarly to normal NFTs. Since a domain can only belong to one person at a time, selling or transferring it will be as easy as clicking a button in the future.
You can use your NFT domain name to send and receive cryptocurrency payments instead of a long, complicated address that is hard to remember and even harder to verify. Suppose you had some Ether and wanted to send it to CyberSrilla. Going into your Web3 wallet, entering the desired amount, adding the recipient “Cyberscrilla.NFT,” and then clicking “send” would be all that’s required. You can also make money by investing in and flipping NFT domain names.
Cost efficiency: Pay once, own and keep it forever
When you purchase a domain through NFT, it is understood that you will have complete ownership of the domain. The only cost you’ll ever incur is the initial investment in setting up your domain name, and no one can make you take it down. NFT domains do not have renewal costs. Individuals can have full ownership of their NFT domain provided it is stored on a public blockchain. There is no time limit, and the domain name does not need to be renewed.
But, before you get too excited and start looking for separate NFT domains, let’s also discuss the dark sides of NFT domains.
Do NFT domains have any disadvantages?
Everything has two sides, and so does this intervention. What are the cons of NFT domains?
This feature is not available on all browsers.
Firstly, It’s worth noting that many common browsers don’t yet support extensions like .crypto or .zil, including the most popular ones such as Firefox, Edge, Google Chrome, and Opera. I believe that it’s still possible in the feature. In the meantime, several crypto-friendly browsers provide safer internet browsing, such as Brave, which supports NFT domains.
Don’t think about changing NFT domains after creating it.
It is practically impossible to alter information or ownership records on an NFT Domain. The reason for this is that NFT zones use a public blockchain. The domain’s history of transactions can’t be changed once they’ve been recorded. It’s possible that this could be seen by some as a plus, while others would see it as a minus.
No results on Google
You probably already know this, but if you maintain a blog or another type of site with valuable content, Google will reward you by displaying your website to the world in the search results. Unfortunately, Google isn’t currently indexing NFT domains, so results for those domains won’t show up in search results. Search engines like Google currently do not prioritize NFT domains.
The value is unpredictable
Lastly, although you can actually buy and resell them for profits, there is chances that nobody will want to buy a domain as an investment in the NFT market. Also, there is no assurance that the value of the NFT domain name you purchased will hold or increase.
Conclusion
In conclusion, NFT domains are promising blockchain applications because of the many advantages they can bring in terms of cost efficiency and owner authority. However, it’s important to be aware of the browsers it works with and the value it provides. Feel free to contact us at hello@satom.vc if you have an innovative proposal or a workable business plan for the Web3 industry. You and your group are more than welcome to use our services and facilities at any time.
