The internet rapidly evolves into its next generation, web 3.0 or the decentralized web. This new iteration aims to transfer power from big tech companies to users through blockchain technology, cryptocurrencies, and decentralized applications (dApps).
One fundamental shift is in internet domains and how sites are hosted. Web 3 is bringing about new decentralized domain systems to replace the traditional DNS controlled by ICANN. These new Web 3 domains provide censorship resistance, privacy, and user ownership.
Understanding these new domain options is crucial for anyone building a site on Web 3. This guide will explore what Web 3 domains are, their benefits, and the top platforms to use.
What are Web 3 domains?
Web 3 domains are website domains that point to decentralized hosting platforms rather than traditional web hosting services. They help form the foundation of the decentralized web.
Here are the key things to know about Web 3 domains:
- They replace ICANN domains – Web 3 domains operate independently without oversight from ICANN, which manages standard domain extensions like .com.
- Domains are NFTs – Web 3 domains are issued as NFTs (non-fungible tokens) on the blockchain, meaning each domain is unique and owned wholly by the holder.
- No single point of failure – Decentralized domains remove central authorities that can censor sites or experience outages. The domain NFT points to content hosted across nodes.
- Censorship resistant – With central oversight, web 3 domains can be seized or blocked easily by authorities. Smart contracts on the blockchain control domains.
- User-owned identity – The domain NFT gives complete control and ownership over a site’s identity. The domain can be sold or transferred like any other NFT.
Key benefits of Web 3 domains
Decentralized Web 3 domains provide some significant advantages over traditional ICANN domains:
No renewal fees
Once you acquire a web 3 domain NFT, you own it forever without paying renewal fees annually, like .com or .net domains. You have full ownership rights over the domain in perpetuity.
Censorship resistance
Authoritarian regimes cannot force Web 3 domain providers to seize or block domains. Only the domain owner can control their site. This enables accessing blocked content.
Control over domain
Owning the domain NFT means having complete control without relying on a central registrar. The domain can be monetized, like selling it when it gains value.
Privacy protection
Most Web 3 domain NFTs are purchased with crypto wallets not linked to real-world identities. This provides greater privacy for the domain owner.
No downtime risks
Centralized web hosting services and DNS providers carry risks of downtime. But Web 3 domains spread hosting across nodes, removing single points of failure.
Top web 3 domain platforms
Several platforms are pioneering decentralized Web 3 domains and DNS. Here are some of the leading options:
Unstoppable Domains
Unstoppable Domains offers .crypto domains as NFTs minted on the Ethereum and Polygon blockchains. It provides censorship-resistant sites. Domains can be purchased with a credit card or crypto.
Ethereum Name Service (ENS)
ENS offers .eth domains as NFTs on Ethereum. It features an open-source innovative contract system for resolving domain names. ENS also enables human-readable crypto wallet addresses.
Handshake
Handshake uses a decentralized blockchain to provide domains with extensions like .handshake and .hns. Domains are purchased during auctions held on the network.
OpenNic
Unlike other platforms, OpenNic offers alternative DNS servers compatible with standard ICANN domain extensions. However, lookup operations happen in a decentralized peer-to-peer way.
How Web 3 domains work under the hood
We’ve covered the key benefits of Web 3 domains. But how do they work on a technical level? Here’s a quick overview:
- Users purchase domain NFTs from a provider’s marketplace.
- The domain is recorded on the blockchain in a registry contract.
- Host content on IPFS, Arweave, Skynet, or other decentralized storage
- Upload DNSLink records that map a domain to the content hash.
- DNS resolvers, like from the domain provider, point the domain to hosted content
So rather than linking a domain to a specific server IP address, web 3 domains connect to content hashes hosted across a decentralized network. This provides censorship resistance and removes single points of failure.
Using Web 3 domains for your website
Migrating a website to Web 3 domains provides benefits but also some hurdles. Here are some tips:
- Choose a suitable decentralized storage network – Compare IPFS, Skynet, Arweave, etc. based on performance, cost, and reliability
- Point domain to hosted content – Upload site files and configure DNSLink records to connect domain to content hashes
- Consider bandwidth needs – Blockchain-based storage may incur higher bandwidth costs than centralized servers
- Manage DNS propagation – It takes time for DNS changes to propagate, so have a transition plan
- Update site architecture – Decentralized sites may need adjusting for factors like slower speeds
- Provide fallback options – Maintain your ICANN domain during the transition to Web 3 to avoid disruption
The future of Web 3 domains
Decentralized domain systems are a foundational building block of Web 3.0. As blockchain technology and decentralized infrastructure mature, web 3 domains are poised to become the standard way of mapping identities and hosting censorship-resistant websites.
Before mass adoption, early adopters of namespaces like .crypto and .eth will benefit from controlling their online identities. Web 3 domains help transfer power over naming and domain control back to users rather than central authorities.
Web 2.0 enabled user-generated content and social media, but Web 3 builds on that user-first ethos. The open, decentralized nature of blockchain aligns with the original vision for the web itself. As Web 3 gathers momentum, domains owned and controlled by users promise to accelerate this next evolution.
What is Web 3?
Web 3 refers to the third generation of internet services and applications. It is focused on leveraging blockchain, decentralization, and token-based economics to give users more ownership over their data and online identity. Some fundamental principles of Web 3 include:
- Decentralization – Reducing reliance on centralized intermediaries and servers. Data and applications are distributed across nodes.
- Transparency & Immutability – Blockchains provide transparency into transactions and an immutable record. This builds trust and accountability.
- User Control & Ownership – Users own their accounts, data, digital assets, and identities rather than large tech firms.
- Openness & Interoperability – Open standards and protocols allow applications and data to be easily portable across platforms.
- Participation & Equity – Users are stakeholders who participate in protocol governance and shared value creation.
Pioneering Web 3 Domains
Several emerging tech sectors are leading the Web 3 infrastructure and ecosystem development. Here are some of the critical domains pioneering Web 3:
Decentralized Finance (DeFi)
- Enables financial services like lending, trading, and insurance directly between users without intermediaries.
- Uses intelligent contracts on blockchains like Ethereum to create open financial products.
- Aims to create an open and globally accessible financial system.
- Key platforms include Aave, Uniswap, and Compound.
Non-Fungible Tokens (NFTs)
- Digital assets with unique identifications and properties are recorded on a blockchain.
- Allow digital art, collectables, and assets to be tokenized and traded.
- Provide proof of ownership and scarcity for digital goods.
- Popular NFT platforms include OpenSea, Rarible, and NBA Top Shot.
DAOs (Decentralized Autonomous Organizations)
- Member-owned communities and organizations that operate on the blockchain.
- Governed by smart contracts and voting rights given to members.
- Allow decentralized and transparent governance of projects and protocols.
- Examples include MakerDAO, Uniswap, and ConstitutionDAO.
Metaverse Platforms
- Online 3D virtual worlds focused on user experience and engagement.
- Allow users to interact, game, trade, and monetize virtual experiences.
- Merge digital and physical worlds into a shared virtual space.
- Key platforms include Decentraland, The Sandbox, and Somnium Space.
Web 3 Infrastructure
- Underlying blockchain protocols and networks powering Web 3 applications.
- Includes Ethereum, Polkadot, Cosmos, Filecoin, IPFS, Livepeer.
- Provide decentralized computing resources, storage, identities, payments, and more.
Benefits of Web 3 domains
The growth of Web 3 domains aims to unlock several vital benefits:
- Greater User Control: Users control their data, identities, assets, and online experiences rather than giant tech gatekeepers.
- Open Innovation: Open standards spur innovation and interoperability between applications and networks.
- Transparency & Trust: Blockchain-based transactions and operations provide transparency and auditability, building trust.
- Censorship Resistance: Applications are hosted and processed decentralised, resisting censorship.
- Reduced Fees: Disintermediation removes unnecessary intermediaries fees and rent extraction.
- Accessibility: Permissionless, global access to applications and economic opportunities.
- Equity & Ownership: Users capture value and have ownership in the networks they contribute to.
Challenges Facing Web 3
While promising, Web 3 still faces adoption challenges:
- Technological Maturity: Many protocols remain in beta stages and need further testing and development.
- User Experience: Onboarding and user experiences need improvement to reach mainstream audiences.
- Regulatory Uncertainty: Regulations around blockchain technologies and assets are still evolving.
- Security & Centralization Risks: Decentralized networks must ensure robust security and resistance to centralizing forces.
- Sustainability: Questions remain around energy consumption and environmental sustainability.
The Road Ahead
Web 3 represents an ambitious vision to reshape how we interact online and share value. The success of Web 3 will depend on addressing its challenges while staying true to its core design principles. With continued innovation across its pioneering domains, Web 3 could unlock an internet that is fairer, more open, accessible to all, and shaped by users. The road ahead is filled with obstacles and unknowns but also new opportunities.
Conclusion
New Web 3 domains powered by blockchain and decentralized storage provide an alternative to the traditional ICANN system. Benefits like avoiding censorship, reduced fees, and no gatekeepers make Web 3 domains appealing for the new user-owned web.
Platforms like Unstoppable Domains, ENS, and Handshake are introducing extensions like .crypto and .eth. By purchasing domain NFTs, users can own their identities and host sites resistant to downtime and central control.
There are still challenges in fully transitioning sites, but Web 3 domains are laying the foundation for the next generation of an open, user-owned internet. Early adopters will reap the most rewards.
