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

Ever since the introduction of blockchain, the world has seen the technology disrupt various sectors and industries. With blockchain having some commendable success in fields such as 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 had many changes 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 be a hit in a few years.

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

What are 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. As such, 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 some 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, which are companies like Google domains and Godaddy. These companies are custodians of your domain and have full control over your domain name.

What this means is 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 in charge of 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 the disappointment that there are no cryptographically secure ways to send payments. There have been various innovations to help with digital payments across the world, such as PayPal, Visa, Mastercard, and Stripe, which has been 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 out there providing these services. However, some of the companies that allow you to buy blockchain domains include:

• Unstoppable Domains

This has been one of the most successful companies in providing blockchain domains. Unstoppable Domains is currently looking for ways to develop a blockchain exclusively for blockchain domains. Now, the company is running .zil domains on testnet. Through the Zilliqa domain system, the developers aim to use a human-readable name to replace crypto addresses. .zil users will also be able to launch websites that are resistant to censorship.

Although the company also issues users with a wallet, they can only use it to store their blockchain domains. Users must, therefore, integrate their wallets into the company’s software to send and receive crypto coins using their domains.

• 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.

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.

Given that blockchain domains don’t require an annual subscription, we can expect these domains to take the internet by storm, once they are 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.