Users can register a domain name on the blockchain and store it in their crypto wallet as an NFT, free from centralized entities.
The buzz around NFTs, non-fungible tokens, started after a digital artist known as Beeple sold a digital art piece for a whopping 69 million USD. The sale of these digital assets made 2.5 billion USD in the first half of 2021 alone.
The trend is not even limited to works of art. The concept of NFT trading on the blockchain transfers ownership of any digital assets has also gained a foothold in other areas.
And one of the most innovative and high-value assets among them are NFT domains. At first glance, blockchain domain names look similar to traditional domains. However, a closer inspection would reveal that they are much more than web addresses.
Platforms like Quik allows users to mint crypto domains with added functionalities, more features, and superior security. Besides offering ease of crypto transactions, developers are also looking at them as a way to seek decentralized internet, or Web 3.0.
What are NFTs?
In a way, NFTs are a lot like cryptocurrencies. Their existence is recorded and live on blockchains, you can trade them using cryptocurrency, and there may not be any physical asset tying them to the real world.
However, their non-fungible characteristics make them different from fungible cryptocurrencies like Bitcoin. In other words, we cannot exchange them for an identical asset. For instance, fiat currency is a fungible asset. Each dollar is unique, but if you swap a 10 USD bill for two 5 USD bills, you still have 10 USD.
On the other hand, if you trade an autographed cricket card for 10 USD, you will have a non-fungible item. Though it is unique and offers a monetary value, the card itself is not a trade commodity.
NFTs examples include houses, artwork, pets, domain names, etc. They are essentially digital tokens on a blockchain representing unique items like a crypto kitty, a digital art, tweets, or even ownership of a physical asset tied to an NFT.
Okay, What About NFT Domains?
Website domain names are often among the first considerations of anyone looking to start an online business. A simple and memorable URL can make a huge difference in the site's marketing and its products. Hence, some domain names have become quite expensive, considering the limited number of URL extensions.
It is also why opportunists engage in "domain sniping." They wait for popular domain registrations to expire and buy the URL before owners realize what happened.
Blockchain domain providers enable users to register a domain name on the blockchain and store them in their crypto wallet as an NFT instead of getting one from traditional registrars like GoDaddy.
These NFT domains come with a whole new set of available TLDs, Top-Level Domains like .btc, .vr, and .chain. In addition, most platforms only charge a one-time fee and offer 100% ownership with no control of central entities. Thus, protecting businesses from activities like domain sniping and censorship.
But, Why are NFT Domains Popular Among Developers?
To understand why developers care about NFT domains, you first need to understand how they work. And you need to know the basics of IP, Internet Protocol, and the DNS, Domain Name System for that.
IP is a set of rules for setting data on the web, so it arrives at the correct destination. Every connected device has its IP address; it is a string of numbers like 123.999.100.133.
Since it is challenging and cumbersome to remember the different IP addresses of different websites, we create the DNS. In a DNS name, the characters immediately after the "." such ".com" are called TLD, and the ones before the dot, such as "Quik," are called the SLD, the second-level domain.
For example, the DNS hierarchy of Quik.com/marketplace, includes the dot as root, com as TLD, Quik as SLD, and /marketplace as subdomain.
DNS servers worldwide act like phone books that translate website domain names into IP addresses readable to machines. The non-profit organization ICANN, Internet Corporation for Assigned Names and Numbers, manages everything, including creating new TLDs and overseeing SLD registrations.
And as blockchain technology became popular, developers looked for ways to decentralize internet domains; they came up with NFT domains.
Crypto domains can bypass ICANN and open the doors for millions of new domains by registering new TLDs on the blockchain.
Different Ways Developers can Leverage NFT Domains
The first thing anyone who purchases an NFT domain is often connecting it to a cryptocurrency wallet to receive funds. "Domain resolution" allows human-readable NFT domains to automatically direct payments to a wallet's appropriate currency addresses like Bitcoin to BTC address, Ether to its ETH address, etc.
Developers also use NFT domains to link to decentralized Web 3.0 apps, whose numbers have grown significantly over the past years. You can also choose to develop your own website or application on top of it.
And since your crypto domain name is recorded on a blockchain as an NFT and launched on IPFS, InterPlanetary File System, a decentralized storage system, only, you can change or delete your website content.
Finally, you can also mint, purchase, or trade NFT domains. In fact, there is a thriving resale market for popular blockchain domain names.
How to Purchase an NFT Domain?
Now that you understand its concept, you can follow a few simple steps to purchase an NFT domain.
#1 Go to an NFT Domain Marketplace
Similar to acquiring a traditional domain, you will have to go to an NFT domain marketplace like Quik or Unstoppable Domain.
#2 Select Your Preferred Extension
You will see a variety of extensions such as .chain, .i, .btc available on the NFT domain marketplace. You can choose one from any of these options.
#3 Make the Payment
After selecting your preferred extension, all you need to do is make your payment to finalize the purchase.
The ease of payments and censorship-resistant blockchain domains solve significant problems with existing domains, transforming them into universal, permissionless commercial tools.
You can also join platforms like Quik.com today and become a part of the internet of tomorrow!