Understanding Web3 Domains

Many projects in the crypto and blockchain space are exploring Web3 domains due to the limitations of Web2 domains, which don't give full ownership to their users. Web3 domains are gaining global attention for offering a more secure and decentralized online environment.

Using blockchain technology, Web3 domains have several advantages over traditional Web2 domains. More and more people and businesses are getting on board with Web3 domains because of their practical uses and the significant impact they're expected to make on the future of the Internet.

This educational article will discuss what Web3 domains are and why they are shaping the future of the Internet. What are Web3 domains? 

Web3, or blockchain domains, are domain names registered on a blockchain instead of the traditional centralized domain registrars. These domains utilize decentralized and secure digital ledger blockchain technology to manage domain ownership and associated data. The blockchain ensures that domain ownership and records are unchangeable, transparent, and censorship-resistant.

The problem that Web3 domains aim to solve is that Web2 domains are essentially leased from organizations like ICANN, involving recurring fees, making them not truly owned by the users. In contrast, Web3 domains are completely owned and documented on an unalterable blockchain, removing central control. No ongoing fees exist; you pay once, and the domain is yours indefinitely. Importantly, Web3 allows ownership of second and even top-level domains (TLDs).

Web3 domains are typically built on blockchain platforms that support creating decentralized applications (dApps), smart contracts, and digital assets. Ethereum is a prominent example of a platform that accommodates various Web3 domain providers.