What are NFTs?
NFT (non-fungible token) is a unique digital object stored on the blockchain. NFTs can represent almost anything — from artwork to virtual land to domain names — and serve as digital records of ownership.
NFT domains exist on the blockchain and grant users ownership of their stored data. These NFTs are used to create and host websites, and as a way to simplify transactions by replacing wallet addresses (long strings of letters and numbers) with domain names.
How is domain name NFT defined?
Think of NFT domains as an easy-to-remember wallet shortcut. Like other types of NFTs, NFT domain names are stored on the blockchain. In web2, websites are accessed through DNS (Domain Name System) servers. DNS servers translate website addresses into IP addresses. Likewise, in web3, wallets can be accessed through domain names. These domains will become wallet addresses.
With growing concerns about ownership of personal data, and a desire to avoid third parties such as domain registrars, NFT domains could be a potential answer to the question of how to do this. Gain more control over user data. Domain name NFTs allow users to own and control data that exists on their domain, rather than a hosted web2 domain.
NFT domains can contain extensions such as .eth, .polygon, .nft, .crypto, .bitcoin, .x, and .blockchain.
What are the benefits of using blockchain for NFT domain names?
Ownership and Control
Due to the immutable and public nature of the blockchain, NFT holders can verify that they own their domain name and transfer it whenever they want. Additionally, content hosted on web3 domains is decentralized and owned by the domain owner.
Accessibility and the web
By using the blockchain to store and transfer NFT domains, a more seamless experience can be created for owning, selling, and buying NFTs. In addition to interacting with others, NFT domains also make it easier for domain owners to access their crypto wallets, since in many cases they can replace wallet addresses with their domain names.
authenticity and provenance
.By using the blockchain to track the ownership and movement of NFT domain names, a clear and verifiable record of the domain name’s authenticity and provenance can be established. This can provide more transparency to users.
What is the Ethereum Name Service?
Ethereum name service (ENS) is a “distributed, open and scalable naming system based on the Ethereum blockchain”. It is the most widely integrated domain name service, with 2.8 million names, 529 integrations, and 649k owners at the time of writing. Domains on ENS have a “.eth” extension, but as of 2021, ENS has allowed direct integration of other top-level domain sites such as .com and .org. Now, if someone has a domain ending in .com, you can connect that domain to an ENS domain ending in .eth.
ENS was originally proposed by Nick Johnson in April 2016 as a protocol that would provide “flexible resolution of short, human-readable names for resource and service identifiers.” Johnson’s Ethereum Improvement Proposal explains that “the name and arrangement of resources can change over time, so a user can change wallets, a website can change servers, or a team document can change. Update to a new version without changing the domain name”.
ENS has a similar purpose to DNS, but has a different architecture because it is built on the Ethereum blockchain. According to ENS, “ENS complements and extends DNS functionality with decentralized, trusted name resolution for web3 resources such as blockchain addresses and distributed content.”
Unlike other NFT domain names, ENS needs to be renewed at least once a year after purchasing an NFT domain name. Prices fluctuate based on the length and uniqueness of the domain name.
Other Notable NFT Domains
NFT domains are starting to become popular in 2021. That same year, Budweiser became one of the first major brands to purchase the NFT domain beer.eth. According to Yahoo, the acquisition comes as it pushes web3 further, including using a profile picture designed by NFT artist Tom Sachs.
Also in 2021, Unstoppable Domains sold its win.crypto domain name for $120,000, breaking the all-time record for the most expensive blockchain domain name at the time.
Where are NFT domain names stored?
NFTs will be stored on the blockchain. Users can use NFT-compatible encrypted wallets to access their NFTs and view them on OpenSea once their wallets are connected. An easy way to remember the role of a cryptocurrency wallet is to think of it as our unique address on the blockchain – it allows us to send, receive and store items.
How to use OpenSea to discover and buy NFT domain names?
Customers can find NFT domains on OpenSea by visiting the Domain Directory page.
Similar to any other transaction, in order to buy NFTs, users need a cryptocurrency and a crypto wallet (or in some cases, just a credit or debit card). Using OpenSea, users can instantly purchase items for sale, place bids in auctions, or bid on NFTs.
Domain NFTs build on the popular DNS domain name buying infrastructure, offering an alternative for those who also want to own a domain name in metadata. Each domain is hosted in a decentralized manner and gives the owner the opportunity to be the sole safe custodian of any content that exists on that domain.
- The MetaMask update includes NFT viewing for ERC-721 and 1155.
- OpenSea launches OpenSea Pro to compete with Blur for NFTs
board pass
According to Opensea
