Blockchain Domains Starter Guide: What Are They and How do They Work?

Ever since the introduction of blockchain, the world has seen technology disrupt various sectors and industries. With blockchain having some commendable success in supply chain management, health care, and others, experts seem keen to explore other areas where the innovation could come in handy. 

One such area is domain name registration. Although the internet has been evolving over the years, web hosting and domain registration haven’t changed over the years. However, software companies are now looking to change the industry using blockchain domains. 

Blockchain domains are still a new concept. However, given the technology’s success in previous use cases, we can expect the domains to hit in a few years. 

So, what are blockchain domains, and do we really need them? This starter guide will explore all of these domains, how they work, and what benefits they present. Keep reading for some insightful information on the same.

What are the Blockchain Domains?

The simplest definition is that blockchain domains are web domain assets built on a blockchain. They are new web extensions built on decentralized blockchain networks such as Ethereum. They are quite similar to cryptocurrencies in that the assets belong to the domain owner and not any central authority or third-party. 

For a blockchain domain to be operational, developers have to bring together a collection of complex smart contracts to form a human-readable web address. Users are then allowed to register a domain on the blockchain, and just like crypto coins, they get private keys to the domain. As a result, a domain owner has full control over the blockchain domain. 

Blockchain domains are not as popular as traditional web domains and are still in their infancy stage. As such, you may not be able to open or find them through popular search engines such as Google. To open these addresses, you will need additional plugins before browsers become compatible with the blockchain domains. 

Why Do We Need Blockchain Domains?

Considering that blockchain domains are still in their infancy, do we really need them? Will these domains help solve any issues? 

The truth is that the existing web domains come with a variety of challenges. Some of these challenges are:

  • Current domains aren’t resistant to censorship.

Should you choose to buy a domain today, you will get it from domain registrars, companies like Google domains, and Godaddy. These companies are custodians of your domain and have full control over your domain name.

This means that your domain registrar can decide whether or not to give you a particular domain. They can also take down your site at any time by taking the site’s domain. 

Blockchain domains allow users to build websites that are resistant to censorship. Users store these domains in their crypto wallets and have full control over them. Therefore, no one can take down any content published on these sites unless they have access to the private keys provided to the owner. 

  • Centralized entities currently control domains.

The Internet Corporation for Assigned Names and Numbers (ICANN) is the central entity responsible for assigning new domain extensions on the internet. ICANN has full control over domain extensions in that it can decide not to assign specific new extensions. The company can also choose to bring down specific sites, which bars freedom of speech on the internet. Besides, ICANN can be quite unreliable and slow, and you may have to wait for quite some time before getting your new domain extension. 

With blockchain domains, users don’t need any permission from ICANN to launch their sites. They also get to choose whatever extensions they want. Of course, regulators may come in to have some control over the available extensions, but it won’t be as tricky as it is to get a new domain extension from ICANN.

  • Traditional domains don’t support native payments.

Although a core design of the internet was meant to be the free flow of cash, it is quite a disappointment that there are no cryptographically secure ways to send payments. Various innovations have helped with digital payments worldwide, such as PayPal, Visa, Mastercard, and Stripe, particularly successful in the US and other western countries. 

However, none of these solutions integrate easily with other solutions across the world. Blockchain domains will help make payments across the internet native. Because the domains are human-readable, all you have to do is give someone your domain and have them send payments there, instead of providing long alphanumeric addresses or your bank account. 

The seamless flow of payments is made possible because blockchain domains use smart contracts to connect to currencies’ public addresses. Besides, the domains will serve as payment addresses for individuals and businesses that receive donations, eliminating the need for separate features to accept the donations. 

Blockchain Domain Providers

Given that the domains are still a relatively new concept, there aren’t many companies providing these services. However, some of the companies that allow you to buy blockchain domains include:

  • Alibaba

In August of last year, the Chinese retailer filed a US patent for a blockchain domain name management system. The company plans to introduce a unified blockchain domain name (UBCDN) system on top of its blockchain to help denote and share information, allowing for effective data management.

The UBCDN system will help manage blockchain domains in cross-chain interactions. Identifiers on the network will receive readable names, and the company will implement the system in its operations to facilitate complaints on the violation of rights. 

  • Aloaha Blockchain DNS

The Aloaha blockchain provides an ultra-fast and efficient DNS protocol via an inbuilt server. The blockchain uses the server to publish distributed content and certain public information. 

The DNS protocol by the Aloaha blockchain provides several use cases in the industry. For example, the DNS could check the validity of vouchers, validate blockchain certificates, and publish routing information. The system could also be useful in validating transactions on the blockchain.

  • Handshake

This relatively new blockchain DNS launched its mainnet early in February, and developers from MIT are behind the project. Handshake is working together with Namebase to provide users a transparent platform to search and bid on blockchain domains.

The project has been in its test phase over the last year but recently opened its doors to the public. Unlike other blockchain DNS systems, Handshake doesn’t aim to overhaul the existing DNS systems. Instead, the project wants to replace the root servers and root file systems, which are often the lowest in the internet architectural system.

  • Luxe

This platform has created a revolutionary product that looks to serve blockchain users. Thanks to a partnership with Ethereum Name Service, .luxe domains can revolve on the World Wide Web and the ethereum blockchain.

Luxe ensures that users only need one domain name to serve in both blockchain and the traditional DNS. Therefore, you can associate the .luxe domain to a smart contract, wallet, or decentralized app and later associate it with a 42-character Ethereum identifier. The integration of the Ethereum blockchain and the Luxe platform ensures more functionality, greater ease-of-use, and increased security of the domains. 

To participate in the DNS system, users will have to purchase some HNS coins. These coins will facilitate the registration, updating, and transfer of internet names on the blockchain.

Final Word

ICANN has been around for close to twenty years and has been making it possible for businesses and individuals to acquire new domains. However, with the introduction of blockchain domains, it is only a matter of time before internet users move to the more convenient technology.

Bitcoin live price
price change

Given that blockchain domains don’t require an annual subscription, we can expect them to take the internet by storm once fully developed. Also, more blockchain enthusiasts are likely to jump on board with the new technology, and more providers are expected to come up with time. 

Stay up to date with our latest articles

More posts

Can You Really Protect Your Crypto Investments Against Whales?

It is only natural that the price of BTC changes following whales' transactions. Because altcoins have smaller market capitalizations, this effect is even more pronounced on their prices. The ways whales manage to manipulate the market are inventive and can lead to heavy losses for small traders. In our guide, we look into the matter and reflect on how to protect a wallet against whales. Understanding the Concept of Whales The term "crypto whale" refers to a person or organization…

What Are Fractionalized NFTs?

Most people who use the internet regularly, whether for business or pleasure, are familiar with NFTs. Everyone in the crypto/blockchain community looks at these "Non-Fungible Tokens” with interest.  The only problem is that NFTs are becoming extremely popular and too costly to own.  In this context, Fractional NFTs, or F-NFTs, have entered the market to attract new investors. Imagine dividing a single NFT into smaller parts and making it available for purchase. This concept is the principle governing the growing…

Diluted Market Cap – A Beginners’ Guide

The value of a cryptocurrency is difficult to predict, especially if we are dealing with a new token. If you're looking to invest in cryptocurrency, measures like the fully diluted market cap can guide your choices.  The term "fully diluted market cap” will represent the core of today’s guide. We'll begin by defining the sector's market capitalization before moving on to more advanced notions. Market Cap in the Crypto Industry The total worth of an asset now in circulation corresponds…

Top Crypto Marketing Agencies to Promote Your Cryptocurrency Project in 2022

Nowadays, launching a crypto project can be a daunting task for most developers, especially considering the competition. This report claims that the industry amasses over 18,000 cryptocurrencies as of March 2022. Whether you focus on NFTs, DeFi, or any other crypto-related activity, you will have to face stiff competition. Fortunately, you can gain a competitive advantage over your peers with the help of crypto marketing agencies. These services cover all the promotional aspects your project needs to get into the…

The Difference Between Capped and Uncapped ICOs

Some ICOs decide to set a cap on how many coins investors can buy. However, some people choose to offer unlimited coins at the sale. Different teams can follow different strategies to obtain success in this growing market. Today, our guide aims to make a clear distinction between capped and uncapped ICOs. Understanding the Concept of ICOs An ICO (“Initial Coin Offering”) is a way to launch a new cryptocurrency. ICOs are a way to raise money for a project…

Is It Possible to Spot a Fake NFT?

Blockchain technology should have made life simpler for digital artists selling unique tokens of ownership to other people. A public ledger can give buyers a record of who owns a piece of art in perpetuity. Blockchain gave some artists a new chance to earn money. However, some artists admit that the last year's crypto boom has been a real mess.  Anyone can "mint" a digital asset as an NFT, even if they don't own it. How do you spot a…

Unstoppable Domains – A Beginner’s Guide

Unstoppable Domains are an intriguing and unique new option that is gaining traction in the crypto industry as more people become aware of them. Even though you may be inclined to dismiss them as simply another "crypto craze,” you may not want to be so hasty in your judgment. Whether you have your wallet or just learning about crypto, unstoppable domains have some unique advantages that you might consider utilizing for your website. This post will go over all you…

Understanding How Ripple’s Interledger Protocol Works

Payment networks are now fragmented and disjointed. Transferring money within a nation or between accounts on the same system or ledger is quite simple. The same goes for transferring money between accounts on a different network or ledger. In most cases, however, transmitting data from one ledger to another is unfeasible. Even in places where connections are available, they are often manual, sluggish, or costly. Ripple’s Interledger Protocol allows the routing of payments across multiple digital asset ledgers. Meanwhile, it protects both…

3 Meme Coins Still Riding the Meme Wave and Ready to Explode

With Elon Musk on the verge of buying Twitter, his pet crypto, Dogecoin, could rise to new heights of popularity and demand. However, DOGE is not the only meme coin ready to burst on the scene in 2022. Others are waiting for a signal to show the meme wave is not only alive and well but rising too. Meme coins started out as a joke. In a market dominated by raging bulls and bears shifting crypto prices by the thousands…

Intel’s Blockscale – A New Bitcoin Mining Chip

Earlier this month, Intel announced Blocksale ASIC, the company's second-generation Bitcoin mining chip. Intel plans to deliver the new chip for the third quarter, which it claims will be more energy-efficient. What does this news mean for Intel and the blockchain sector? How will Bitcoin miners react? Intel’s Second Attempt to Attract Crypto Miners Intel's first mining chip, named Bonanza Mine, is a 7nm process packed in lots of 300. We can speak of a 3,600W mining machine with up…