The NFT possibilities are not limited to collecting and reselling. We are just beginning to realize the unique tokens superpowers.
The mission of the NFT is to secure the user's ownership of the information stored in the distributed ledger. This may be the right to real estate, an email address (which cannot be hacked), an avatar that exists in one copy, a nickname, etc.
The creation and sale of tokens that fix ownership through smart contracts is only gaining momentum. It is still difficult to predict which of the ideas will be accepted by society, and which will sink into oblivion.
Like any new technology, the NFT market is subject to hype, redundancy and rake dancing.
But, in our opinion, there is a category of NFTs that has already proven its application value: the domain name.
WEB.2 centralized domain names
The list of first-level domains on the Internet is long, but limited.
The international extensions familiar to our eyes (com, gov, net, io or info) give a general idea of the activities of the site owners: commerce, government, media, IT. And national ones (eu, us or ua) speak only about the geographical reference of the project. The Domain Name System (DNS) was created to make it easier for users to remember website addresses.
The DNS is managed by the non-profit American corporation ICANN. Companies like Bluehost or Google Domains, licensed from the same ICANN, sell and register domains. The state controls registrars. All processes in this area are strictly centralized.
Also, buying a top-level domain from a registrar does not make you the owner. It's more like renting or buying the right to use an address with an annual fee.
If you don’t make a deposit on time, you will lose the address, and the owner will put it up for sale again.
WEB.3 decentralized domains
The existing monopoly system has not satisfied society for a long time.
But the blockchain made it possible to use WEB.3 addresses with proven ownership. You can now create a web property with a domain that you own and control solely.
The name of the site whose URL works through the blockchain belongs to the buyer forever: no renewal fees or hosting fees.
Why Do We Need Domain NFTs?
The priority task is to get a unique name for the WEB.3 site and be sure that it will never be alienated (unless, of course, the owner himself wants to resell it in the future).
Smart contracts, which are the domain NFT basis, give the exclusive right to make changes to a personal digital name. This minimizes the risk of server hacking or domain theft.
But there are also secondary benefits:
1. The ability to choose a suitable name for business and self-presentation.
Extension selection examples:
● .nft is suitable for digital artists, designers, and collectors;
● .crypto - for everyone who is related to digital money;
● .blockchain - for developers;
● .game - for gamers
● .dao - for decentralization enthusiasts.
You can pick up ticker domains: XRP, SHIB, SOL.
You can search for options among the list of crypto exchanges. But we warn you that so far the issue with the names of crypto projects has not been legally defined. There is a risk of conflict with the owners of the site if they decide that your domain is their registered trademark. Although, it is difficult to imagine that this case will be considered in a civil court: the legislative basis for resolving disputes in WEB.3 does not exist yet.
2. Ability to use a domain name to enter the DEX network.
Using a domain profile, you can create your digital identity, verify social accounts, and display an NFT avatar.
This domain makes it easy to send and receive cryptocurrencies: one easy-to-read name can replace long wallet addresses.
By using a tokenized address, you can access DApps without sacrificing privacy.
Note that it is not possible to change the crypto wallet address to an NFT name on all platforms.
So far, exchanges have declared their readiness to accept such addresses:
● Blockchain.com
● Coinbase,
● OKX.
Wallets:
● Trust Wallet
● MyEtherWallet
● Bitcoin.com
● Rainbow
● Liquality
● Omni
● Cake Wallet
● Klever Wallet
Browsers:
● Brave
● Opera
This list is not final and continues to grow.
How to buy an NFT domain?
Buying a domain name is not much different from buying blockchain monkeys. There are specialized sites (for example, Unstoppable Domains and Ethereum Name Service), but sometimes domain tokens can be found on the usual OpenSea or Rarible (this is already a “secondary market”).
Prices with names from the crypto sphere start at $30.
By the way, Unstoppable Domains sold the win.crypto NFT domain for $100,000. This price hints that it makes sense to buy fancy extensions for resale. For example, the address vitalik.eth, bought last year for $250 by a far-sighted anonymous person, can bring in impressive income.
Most NFT names are sold for crypto (more often ETH), but there are providers that accept fiat. You can pay by transfer from a crypto wallet, a bank card and even PayPal. That is, a qualitative search for a suitable seller will definitely give a result.
After confirming the transaction, you will need to fill out an application for minting.
As soon as it is processed and fixed on the blockchain, you will become the proud owner of an NFT address that exists in a single copy.
