In just over a decade, cryptocurrency has revolutionized the way we think about finance and investing. It has brought about a new level of decentralization and democratization that was previously unimaginable.
One of the latest developments in the world of cryptocurrency is the emergence of crypto domains, potentially far superior to the current (DNS) domains.
In this article, we will explore what crypto domains are and whether they are worth investing in.
What are Crypto Domains?
A crypto domain is essentially a web domain that is powered by blockchain technology. It is a decentralized domain name system that is not controlled by any central authority or government, unlike the current domain naming system we are familiar with.
Instead, it is powered by a decentralized network of computers that validate and secure the transactions on the blockchain. This makes crypto domains much more secure and transparent than traditional web domains.
Crypto domain names have gained popularity in recent years as the cryptocurrency market has continued to grow and more people have become aware of this option.
Crypto domain names can be used for a variety of purposes, not just finding a website. They can also be used to receive and send payments.
Similar to purchasing a traditional domain name, crypto domains are sought after by individuals and companies looking to establish a presence in the cryptocurrency space and also come with many additional benefits.
Crypto domains are created by specific blockchains, with the most popular being Ethereum or Unstoppable Domains. These domains are typically composed of a combination of letters and numbers, similar to traditional web domains. However, they can also be used for cryptocurrency wallet addresses, making it easier for users to send and receive cryptocurrency payments (without having to remember a long and complex set of numbers).
One of the key benefits of crypto domains is that they are censorship-resistant.
Crypto domains are not controlled by any central authority, they cannot be seized or shut down by governments or other organizations. This makes them ideal for anyone who wants to create a website or application that cannot be censored or controlled by outside parties.
Are Crypto Domains Worth It?
To answer this question, we first need to look at the pros and cons of crypto domains when compared to traditional domains and then look at the intentions of the person looking to purchase one.
Crypto domains offer many benefits when compared to traditional web domains. They are more secure, transparent, and censorship-resistant. They can also be used to create decentralized applications and services that are not controlled by any central authority and equally important, there is only a one-time cost associated with them (no annual payments required).
However, since this new domain naming system is still a relatively new technology, it hasn't been widely adopted.
It should also be noted, that the crypto domain market is currently highly speculative. Just as we saw with traditional domain names (especially the .coms'), many of these domain names have sold for hundreds and millions of dollars. We are now seeing this speculative approach with crypto domains with many investors purchasing common names and reselling them for a fortune.
Likely, one of the biggest drawbacks to crypto domains is they are still very new to the market and there is little awareness of their importance or significance. As the internet moves to Web3, crypto domains will become more common, more popular, and as a result more desired.
In short, determining whether or not crypto domains are worth investing in depends on the individual investor's intent (how do you intend to use it - will it be used to help with your brand or as a vanity domain and if you are looking to buy and sell domains, your risk tolerance and investment strategy.
If you are willing to take on the risks associated with investing in new and speculative technology, then crypto domains may be worth considering. However, if you prefer to invest in more established and less risky assets, then crypto domains may not be the best choice for you.
Here are the pros to investing in a crypto domain:
You “Own” the Domain
Likely the greatest advantage of crypto domains over traditional domains is you truely own the crypto domain once you purchase it.
A crypto domain is a non-fungible token, which comes with the same advantages and responsibilities of any other tokenized digital asset (like an NFT).
These tokens can be safely stored on a hardware wallet and there is no risk of them being revoked or taken away from you as long as your have sole custody over your private keys.
If you are familiar with traditional domain names, you will be aware to keep your ownership, you need to pay a fee each and every year you want to keep ownership of the domain. In essence, when it comes to traditional domain names, you are renting them on a yearly basis.
Crypto domains aren't rented - they are truly owned. There is a one-time payment, and once it is made, you own it for life (or forever) as the case may be.
Crypto Domains Can Recieve Crypto Payments
One of the best advantages of crypto domains is that they can receive payments. Instead of submitting a long string of numbers as an address, a crypto domain can be used to direct your payments.
Crypto Domains Require More Responsibility
If you have been in crypto for a while, then you know you are responsible for your keys. If you lose your keys, you lose access to your funds. This is a significant distinction from traditional banking and the same holds true for crypto domains.
A crypto domain is a token on the blockchain and if you lose your private keys to the domain, you won't have access to your crypto domain. This is a very significant point.
Most Browsers Do Not Support Crypto Domains
Crypto domains are still so new that most web browsers do not support them. Since the majority of the world's internet users use either Google Chrome or Safari, they will not be able to find your website until either these browsers start to support crypto domains or the user switches to a different web browser that does support crypto domains, like Brave Browser.
Aren't Ranked Well by Search Engines
Crypto domains are not yet well recognized by search engines, so if you were to build your website it's currently unknown how well that website will rank using a crypto domain.
While it's highly likely in the future, search engines will recognize crypto domains, it is still too early to tell if search engines will rank these domains as well as traditional domains.
Search engines like Google still place a priority on more established top-level domains like .com, .org and .gov.
However, as the internet moves into Web3, this will likely change, however, the timeframe for this is unknown.
Conclusion: Are Crypto Domains Worth It?
Crypto domains represent the new emerging frontier in the world of cryptocurrency and blockchain technology. They offer many benefits over traditional web domains, including greater security, transparency, and censorship resistance.
Whatever your goal is with a crypto domain, there are many considerations you should make.
The first and foremost is whether you’re comfortable with the responsibility that comes with token ownership. If you’ve been in crypto for a while, you’ve hopefully already practiced most of the crypto security hygiene that comes with it, and this shouldn’t be too new for you.
That being said, crypto domains present an immense opportunity to capture what could be a significant part of the evolving web-3 “metaverse” ecosystem. If you are looking to delve into the crypto space, it's well worth getting yourself (or your company) crypto domains, even if it's just a vanity domain (such as your name).