Just Tech Me At

A Guide to Understanding
NFT Domains and the Decentralized Web

January 2023

Credit: David Rumsey Map Collection, David Rumsey Map Center, Stanford Libraries

Domain NFTs are a central part of the decentralized web. With NFT domains (or domain names that are themselves non-fungible tokens) users can manage not only their decentralized website but also digital wallets and other digital assets. These domain names live on the blockchain and are tradable in an NFT marketplace in much the same way as NFT Art is traded. This article with discuss the fundamentals of domains, how the concept of domains fit into the world of the decentralized web, the major decentralized domain naming service providers, and the secondary market for NFTs as a whole.

The Centralized Internet and the Roles of ICANN and IANA

The domain name system (DNS) is a vital part of the internet's architecture. All websites have a registered domain name. The domain naming system is a system of unique identifiers and resources. It is the system that knows that the IP address 192.0.43.22 belongs to icann.org. It allows users to enter into a web browser icann.org and maps them to 192.0.43.22 without them ever needing to memorize the IP number. Internet Corporation for Assigned Names and Numbers (ICANN) and the Internet Assigned Numbers Authority (IANA) have been the coordinators of the system for the centralized web.

IANA was named by Jon Postel, the administrator for ARPANET.* Simply stated, the IANA functions involved the coordination of unique identifiers to make the internet run. Because Postel was the only person performing the tasks of domain naming, it was referred to as the "IANA functions." Following the origination of ARPANET, the internet grew tremendously and ICANN took over the management of the IANA functions.

*Advanced Research Projects Agency Network (ARPANET) was the name of the network established by the U.S. Department of Defense.

Why Decentralize the Web?

Decentralized domain name projects aim to remove DNS's dependence on ICANN using blockchain technology (distributed transparent ledgers structured as chained blocks). Instead of registering a domain name with a registrar (a central authority), you would register it on a blockchain. Decentralized domain name systems are anonymous, censorship-Free, and considered far more secure than the centralized domain naming system.

ENS and Unstoppable Domains

The Ethereum Name Service (ENS) and Unstoppable Domains are the two most widely utilized naming services for the decentralized web. Both naming services are ERC721-compliant which mark the domains they register as "NFT domains". NFT domains become purchasable by others on the NFT market immediately upon their creation. Interested parties can view a domain in an NFT marketplace and seek to purchase it from the owner of record. The owner can transfer their NFT to the wallet of another.

Secondary NFT Market (NFT Marketplaces)

There are a number of blockchain platforms where you can mint, buy, or sell NFTs. Simply secure an NFT wallet that supports the NFT protocol and Open an account with one of the NFT market players and you are on your way.

The following are some of the more popular marketplaces for NFTs:

OpenSea
Rarible
SuperRare
NBA Top Shot Marketplace
Nifty Gateway

Commonly used wallets are Metamask, MyEtherWallet, Coinbase, and WalletConnect.

What is the Significance of NFT Domains?

There are several benefits to NFT domains:

Low to no renewal fees.
You have complete custody over the domain.
You can do more than host websites.
There's minimal risk of domain theft.
Many people use blockchain domains to receive cryptocurrency. Like DNS masks IP addresses, NFT domains mask wallet addresses, making it easier for people to send funds.

Anatomy of a Domain

There are various parts of a domain: subdomain, second level domain, and top level domain. If we dig deeper into the top level domain (TLD), we will find that there are various types. One type of TLDs is the Generic Top-Level Domain (gTLD). It is at the gTLD level where you will see a domain extension. The most commonly used gTLD extensions for the centralized web space are: .com, .net, .biz, .org, and .info. For the decentralized web, you might see an extension like .eth or .blockchain.

Difference Between ENS Domains and Unstoppable Domains

Listed below are a few major differences between ENS Domains and Unstoppable Domains.

ENS Domains

ENS domains are registered for a particular number of years.
ENS domains are registered on the Ethereum blockchain.
When the ENS registration term expires, the domain can be renewed for a fee.
Ethereum is the governing token.
The domain name extension for ENS is .eth

Unstoppable Domains

Unstoppable Domains are registered in perpetuity. Register once. No expiration. No renewal fees.
Unstoppable Domains are registered on the Polygon blockchain. It does not have a governing token.
Unstoppable Domains offers many extensions (.crypto, .nft, .x, .wallet, .bitcoin, .dao, .888, .zil, or .blockchain).

If you're interested in an NFT Domain with Unstoppable Domains, click on the link below. The website offers a Learning Hub where you can gain more knowledge on the topic and start you on the path to owning your first NFT Domain.
Unstoppable Domains

From a Decentralized Domain to a Decentralized Website

NFT domains can be used to build a presence on the decentralized website. To do this, decentralized web developers employ a decentralized storage system that can access a blockchain network. That is where the InterPlanetary File System (IPFS) comes into play. IPFS is a peer-to-peer storage hosting platform within the blockchain ecosystem. It is not a part of the blockchain but offers the benefits of a decentralized storage system. Within IPFS you can store your webpages, images, and other website assets. By linking your decentralized domain name to IPFS, your website can gain a presence on a blockchain network. The IPFS client allows you to upload and fetch web files easily and seamlessly.

Conclusion

The holders of domains names within the decentralized web space enjoy ownership, control, and convenient management of their domains. Not only do NFT Domain Naming Services take on the role of mapping IP addresses to human readable addresses, their domain products also provide support in the storing and transporting of all digital assets. Moving from Jon Postel's IANA functions and ICANN's governance of the centralized web, NFT domains form the next wave of internet architecture for those preparing to enter the arena of the decentralized web.

For more on NFTs, read: