If you have been following up with blockchain and its latest developments, then you would probably be familiar with Non-Fungible Tokens. Popularly known as NFTs, which also brings us to NFT domain names. Talking NFTs, these are rare forms of digital assets that one can trade and gain ownership of. Popular examples of NFTs are digital artifact, gaming assets, avatars, collectibles, domain names, and more. How to create NFT domain names? Well, we shall find out here. But first let’s talk about NFTs in general.
In simple words, NFTs are not irreplaceable, meaning they are rare. On the other hand, fiat currencies are replaceable. Simply because a pound can be traded for another pound as they hold the same value.
However, it’s not the same with NFTs. For example, two digital assets owned by the same user may not have the same value.
Every NFT is different and runs on decentralized blockchain technology. NFTs trading is done through cryptocurrencies. Although NFT art is one of the most popular use cases, web domains can also be tokenized and traded likewise. So, let us learn about how to create NFT domains names and more.
But, first, let us talk about Domain Names
Before we jump into NFT domains, we should backtrack a little and understand how domain names are generally obtained. Domain names are the web-based addresses of sites. This is the very thing you enter in a program to go to a particular site e.g. (sofster.com).
As a general rule, the location of a site is a string of numeric characters called the IP (Internet Protocol) address. The Domain Name System or DNS was made to make it more straightforward for end-users to recollect web addresses. Consider IP addresses as a guide that pinpoints the specific area of a spot. And the space name as the memorable simple alphanumeric location.
DNS servers work as telephone directories that interpret space names to IP addresses. So that when you input a site name into a browser, the PC knows exactly what explicit information you are mentioning. And sends back the right information.
These space names are checked by an American association called the Internet Corporation for Assigned Names and Numbers (ICANN). To utilize a domain name for your site, you’ll have to enroll. And buy it from a domain registrar, like Godaddy, DreamHost and others.
Nonetheless, in this situation, “buying” your domain name doesn’t imply that you own it. You are essentially purchasing the rights to utilize “sofster.com” on the web. It is more like a rental or lease for the name, not a deal. In case the user fails to pay or the contract expires. The domain again become available in the market, and anyone can register it again.
Corrupt organizations and cyber attackers exploit the framework by checking domain names that are going to run out. Then, buying them quickly once they do lapse. They then sell the name back to the original buyer at a much greater expense. Or put it on the market to sell it to the highest bidder.
What are NFT Domains?
NFT Domains are new web expansions (like .com or .org) pFut in place through smart contracts on open blockchains. For instance, the domain names can be an ERC 721 on the Ethereum blockchain and Polygon Network.
NFT Domains are put away in a wallet by the owner. Similar to cryptographic money, and no outsider can remove them. Pay once, and you own the domain forever, with no renewal charges.
Self-custody is one of the main elements of an NFT Domain. This is the thing that makes your domain name decentralized. This is exactly what gives you unlimited authority over your domain
A self-custody is conceivable because your domain is a resource on the blockchain. And is stored like cryptographic money in your wallet. This custody strategy gives your NFT Domain “superpowers” that traditional domains don’t have. Because of the decentralized nature of the domain on the blockchain:
- Cannot be held onto by a third party.
- Can empower decentralized websites.
- It very well may be moved all over the world in seconds without requiring consent from any outsider.
- It gives the owner sole control and access to domain features & highlights – adding crypto addresses and directing content towards your domain.
How NFT Domains Can be Help?
If you are familiar with the NFTs then you would be aware that Non-Fungible Tokens are known to grant ownership of the digital asset to the buyer. So while others can check out the ownership of the digital asset. Only the original owner of the digital asset has ownership of the domain name.
With the introduction of NFT domains, it is possible to decentralize the registration of domain names. The web3 NFT domain names are decentralized, Meaning their ownership always remains with the original owner, no matter whosoever purchases it.
What is the Use of NFT Domains?
NFT domains are for everyone who owns a website or is planning to have one. Typically, if you have know-how about cryptocurrencies, then you must be aware that it is important to have a crypto wallet. As it stores the crypto tokens. Again, NFT domains have more value than simply providing a web address. They can also be used as crypto wallets, and since these are NFTs you can buy, sell, or store them just as other NFTs.
If you own a website, you can type the NFT domain on a compatible browser. And in the same manner, as conventional domains, the NFT domain will bring in results for the user. At the same time the crypto wallet, you can use the same domain name to send and receive cryptocurrencies.
The NFT domains work on decentralization and have top-level domains (TLDs). However, these TLDs are not the same as the ones used in the second generation of the web. While the TLDs for web2.0 are managed by ICANN. And the TLDs for NFT domains run on the blockchain through decentralization. The NFT domains provide TLDs as: .crypto, .nft, .ether, .x, .blockchain, etc.
What are the Benefits of NFT Domains?
As all know, NFTs provide ownership and uniqueness to digital assets. And in the case of domain names, this means that one does not require a domain registrar. In order to obtain rights for the domain names. With these many steps responsible for getting a domain name. There is more control over what and how things are managed. Moreover, these companies can charge hefty fees, with renewable charges from time to time.
This brings us to the topmost advantage of NFT domains. When you purchase an NFT domain name, you only need to pay once, which is the starting selling price. Once you pay the registration fees, the NFT domain name is fully yours. Moreover, the continuous menace from cybersquatters who constantly keep an eye on buying a domain name once it expires is also at bay.
Moreover, you can also host your NFT domain separately from web2.0. Additionally, you can also access the decentralized apps by using the domain. Also, the use of crypto wallets frees you from memorising the crypto address and securely transfers the cryptocurrency.
Here is briefly what you get by using NFT domain names:
- You do not have to pay monthly or animal registration fees. Since NFTs run on a public network, it gives users a chance to own the NFT domain names straight out. It does not have any expiry date or renewal plan.
- Uses crypto wallets. The NFT domain names simplify the multi-wallet address, by restoring it with a single wallet address.
- Utilize blockchain, cryptocurrency, and web3.0 abilities. The NFT domain names can collect cryptocurrencies from different blockchain networks, and also seamlessly sign in to apps that support them.
Why Choose NFT Domain Names over Traditional Domains?
NFT domains are best for users who want to ease out their crypto exchanges by providing a single name that can replace the multiple wallet locations. The use case of these URLs is while creating a censor-ship proof for websites through InterPlanetary File System (IPFS allows users to create and share the content). The peer-to-peer websites run on a decentralization server, where the new NFT domain can be used as its address. Besides, you can also buy an NFT domain as a way to earn profits from reselling. You can get your work done from NFT development company too.
Why are NFT Domains Valuable?
Just like NFTs, even the NFT domains are rare and have identifiers with several uses. These can collect as investments.
- The NFT domains are purchased for the use of personal descriptors replacing complex addresses with different wallets with a single domain name improves the sharing of payments. You can likewise utilize them to have your own Web 3.0 websites.
- Since every NFT domain name is rare. The uniqueness of the rare NFT domain utilization is for speculative investment. Again reselling these scarce NFT domains on other marketplaces can be profitable.
How Do You Create NFT Domain Name?
Simple steps you need to follow to create NFT domain:
Step 1: Select a domain.
Step 2: Add it to the Cart.
Step 3: Next, create an account.
Step 4: Confirm and choose your wallet.
Step 5: Lastly, add the domain in the wallet address.
How Do You Buy NFT Domain Names?
Precisely buying an NFT domain is more or less the same as purchasing any other NFT. You can buy and register these domains for using NFT marketplaces. While most of the NFT domains exchange is possible through cryptocurrencies. However, there are a few contributors that also accept fiat currencies. Registering an NFT domain is not as difficult as you may think it, especially if you have previously traded NFTs it is quite easy.
Steps to Buy the NFT Domain Names
Step 1: Find & Sign in to an NFT Marketplace. Make sure to search for a creditable NFT marketplace development, OpenSea, and SuperRare for NFT domains to name a few. Make sure to give in a password, username, and correct email address to start with.
Step 2: Create a digital wallet. You will have to connect the crypto wallet to the NFT marketplace for buying the new NFT domain name.
Step 3: Add cryptocurrency to the wallet. You need to pay for the new NFT domain name through cryptocurrency. Make sure to check in with the marketplace you have signed up for different payment options. If you are using crypto for payment, you need to transfer it to the wallet and connect to the NFT marketplace.
Step 4: Choose domain name preferences. Mention your domain name preferences, and then choose from the available extensions for the availability as .nft, .blockchain, .crypto, .ether, etc. Each TLD has a different price.
Step 5: Minting the domain. Once you find the domain name you need, choose it and add it to the cart. You can also have the option to bid on the domain name if the seller has listed the NFT for auction. Once you buy it, confirm the transaction with the connected wallet. After minting the NFT domain, the blockchain will accept that you are the owner of the domain name. Thus you have an NFT that you can store or even sell by listing, but also a web address and a crypto wallet.
Steps to Store and Protect NFT Domains
After buying the NFT domain, it will be stored in the marketplace where you bought it unless you need to shift it somewhere else. While on most of the platforms you can find non-custodial wallets, thereby the platform manages the keys to the wallet. You can use the custodial wallet to store the NFT on the website and easily re-list it on the marketplace.
To take complete ownership of your NFT or manage the private keys related to the storage, you can shift it to a personal non-custodial wallet.
Final Takeaway: Create NFT Domains
The latest buzz in the blockchain is NFT domains, which have the potential to use web3.0 to transform the usage of the internet and the impact of blockchain is nothing unknown. Creating a site using the NFT domain is quite straightforward. These domains can store using crypto wallets and can be listed for re-selling. One of the main advantages of the NFT domain is that once you register it, you will have ownership of it forever, without renewal charges. Moreover, because of decentralization, you have complete ownership of your NFT domain which can manage through smart contracts. So getting one is ideally a great bet, especially if you think from a future perspective.
Now that you have complete know-how of NFT domains, are you thinking of purchasing an NFT domain name? Let me know in the comment section.