NFT Domain Names: Simplifying Web3 Identity
A wallet address is your key to transacting in Web3. It also serves as your digital identifier and a way to prove your on-chain activity.
However, wallet addresses are long and complex strings, nearly impossible to memorize. To be able to send and receive crypto, you need to copy-paste the address every single time.
NFT domain names make the unwieldy wallet address into a shorter identifier. When your address is lonilush.eth instead of 0x0b3C9e6477688FBD8D6fa56dB7C51C2447Af8C7C, transactions become safer and more straightforward.
Read on to learn more about NFT domain names, how they can be used, and how you can get one yourself.
What Are NFT Domain Names?
A key component of Web2 is the Domain Name System (DNS) - which at the most basic level allows us to convert human-friendly text into IP addresses. Instead of having to deal with a string of numbers that comprises an IP address, we simply type “www.google.com” and get directed to the search engine page.
NFT domain names do a similar thing for web3 wallets and sites. An NFT domain name links back to a wallet address or a decentralized website. The most common NFT domains consist of a word or two followed by .eth, .crypto, .blockchain, .bitcoin, and more (depending on what service you’re using - more on that below).
How Do NFT Domains Work?
Each NFT domain name is an ERC-721 NFT that represents ownership of a second-level domain (SLD) at a specific top-level domain (TLD).
Yes, it’s a bit confusing. Let’s try to explain:
A TLD is what comes after the “.” in a site address. For example, “.eth” or “.com” is a top-level domain. A TLD is key for the DNS infrastructure to be able to translate the site address to its corresponding IP address.
A second-level domain (SLD) would be the primary name you see in a website address - for instance, the “google” in “google.com.” A subdomain is an additional section of your website - “support” in “support.google.com.”
To create an NFT domain name linked to your wallet, you can use a service that operates a TLD and lets you buy your SLD and subdomains. For example, Ethereum Name Service (ENS) operates the .eth TLD. You can register your SLD - that would be lonilush in lonilush.eth.
The TLD, and any second-level domains, or subdomains registered to that TLD, are governed by smart contracts (known in this instance as registries). These registries record the domain name and the owner/wallet address the domain is linked to. Since everything is on the blockchain, all of this information is publicly available.
What Exactly Can I Do With an NFT Domain?
You can use an NFT domain to:
send and receive crypto
log onto decentralized applications (dApps)
host a website
build your brand around
trade them like regular NFTs
As a shorthand for a wallet address, an NFT domain makes sending and receiving crypto and NFTs simple. For example, you can type in your domain for a giveaway immediately, without looking up your wallet address.
Transactions also become safer as NFT domains decrease the possibility of mistyping your address. Copying and pasting an address can also be dangerous in case of hacks that change the address during this process.
Your NFT domain name can also serve as the site address for your decentralized website. Your NFT domain name will direct everyone who puts it into their Web3 compatible browser (like Opera or Brave) to your web page.
You probably also saw a lot of people on crypto Twitter using their NFT domains as usernames. This signals the commitment to the space and allows others to browse your on-chain activity. There are pros and cons here - having your activity public helps you build credibility and authority in Web3, but decreases privacy.
Lastly, since these domain names are NFTs, they can be bought and sold on platforms like OpenSea. You can trade NFT domains just like people trade Web2 domains.
How Can I Get My Own NFT Domain?
While it differs by platform, the general process is pretty straightforward. Search for the SLD name you want, and if it’s available, buy it from the service provider.
There are a few major players in the NFT domain name space. The two you are most likely to interact with are Ethereum Name Services (ENS) and Unstoppable Domains.
While ENS and Unstoppable Domains both let users buy NFT domain names, there are several key differences. Let’s take a look at ENS first:
Ethereum Name Service (ENS)
Launched in 2017, ENS has become one of the most popular services for purchasing an NFT domain name. It is a non-profit foundation governed by a DAO. With the ending “.eth” as the only available top-level domain, it has generated more than 800K names sold as ERC-721 tokens.
ENS has integrations with all the major wallets and dApps in the web3 ecosystem, including Metamask, Coinbase, Rainbow, OpenSea, Etherscan, and many more.
If you have an ENS name, you can add additional identifying information. Through the ENS app, you can create a comprehensive online identity by associating your NFT domain with your Twitter profile, personal website, email, GitHub, and more. You can also add xyz to an .eth domain to browse someone’s NFT collections (eg. lonilush.eth.xyz).
An ENS name is valid for one year, after which you’ll have to renew your ownership. Here’s a straightforward guide to registering an “.eth” domain through ENS.
If the name is already taken on the ENS app, you can try checking the secondary market. Prices vary widely depending on the perceived desirability of the name. On OpenSea, you could purchase a name for as little as .005 ETH (current offerings include “furyroad.eth”) or as much as several thousand ETH (0xmusk.eth could be yours for 10,000 ETH or yachts.eth for 5,555).
Unstoppable Domains
Unstoppable Domains is arguably the biggest competitor to ENS - it allows you to purchase names with endings including .crypto, .coin, .bitcoin, .x, .888, .nft and .dao. Like ENS, these names are ERC-721 tokens. You can buy a name directly through Unstoppable Domains or through a secondary platform like OpenSea. But Unlike ENS, when you buy a name through Unstoppable, it’s a one-time payment - you’re purchasing it for life.
Unstoppable Domains has minted over 2 million NFT domain names and also has integrations with all the major dApps. Its Login with Unstoppable product allows users to log into applications, like virtual real estate platform Parcel, with their domain name. By logging in this way, users have a single username across sites, and also can choose what personal information is shared with the site.
Unstoppable Domains is a for-profit company that has several major venture capital investors, including Coinbase Venture, Draper Associates, and Protocol Labs.
What’s Next for NFT Domain Names?
NFT domain names are a way to make Web3 infrastructure more user-friendly. Instead of complex wallet addresses, a more traditional and familiar handle makes Web3 interactions easier while reducing any concerns around sending or receiving tokens with the wrong wallet address.
Do you have an NFT domain name yet? Let us know in Discord and check out the discount we offer to Surge Passport NFT holders for Unstoppable Domains.
