Is blockchain the future of web domains?

The evident and alleged similarities between the dotcom boom and the rise of cryptocurrencies over the last few years have been examined and written about extensively.

For example, between 1995 and 2000 the Nasdaq Composite stock market index rose 400% in just five years, while between 2016 and 2021 Bitcoin grew from $315.21 to an all-time high of $68,789. Of course, a big difference is that the dotcom bubble only lasted about five years before bursting, while Bitcoin was invented in 2008 and is still going strong 14 years later.

During the late 90s the meteoric rise of the internet caused an influx of money to be poured into tech companies, many of which didn’t have the ability (or the foresight) to turn the attention they were enjoying into concrete plans or profits. They subsequently went bust.

While there have been predictions of a similar future for cryptocurrencies, NFTs and Web3-related products and services built on blockchain technology, it remains to be seen whether or not that will be the case. Or will the crypto ‘bubble’ ultimately just turn into a fully-fledged stable industry like any other?

Growth spurts are not confined to the contemporary business era and have accompanied several technological innovations over the last two centuries. There is a big difference, however, between internet-based bubbles and any other technology-inspired booms of the past. In the case of railroads, cars, radio, TVs and home computers, both early adopters and those who waited enjoyed the benefits of these inventions in very similar ways — via tangible benefits with everyday value.

Not so much with the dotcom era and the rise of Web3 in the last decade or so, where early adopters have benefited (and will benefit) enormously compared to virtually everyone else.

When it comes to cryptocurrencies, or even NFTs, the time to be first is over and done with. In the case of blockchain domains? You could still be early... Let’s take a look at what that means, and why it matters.

Blockchain domains

Blockchain domains are a core element of the vision of Web3, as they represent a way to break free from the centralised control of Web2 (the one we know today) as well as traditional systems like the DNS and ICANN.

They are domains built on blockchain technology and, just like any other public transaction on the ledger, they are not governed by any centralised body. Blockchain transactions are immutable so, once you own a blockchain domain, it’s yours to hold onto forever or to sell. Most name services have no renewal fees or hosting fees, as is the case with traditional domains.

Blockchain domains are essentially NFTs, and can be sold and bought exactly like one. With self-sovereign ID technology, they can also be used to match a domain to a unique Web3 ID. This means they will function as complete online identities and be associated with personal information you choose to store on the blockchain — think bank accounts, email addresses and other personal data.

Of course, they can be (and primarily are) used to match a crypto wallet address. These are typically long and hard to remember, with a human readable word or string of numbers, like elephant.ccd or 1234.ccd. People can send blockchain-related assets like cryptocurrencies directly through these domains, which makes them particularly useful now that everyone is buying and selling NFTs. It will only render them more and more beneficial as the new era of Web3 is ushered in.

New competitors to the Ethereum Name Service (or ENS, the distributed open naming system based on Ethereum blockchain) are entering the field, delivering affordable and relatively easy-to-secure domains. But, as big brands catch on and secure blockchain domain names, the risk of cyber squatters and speculators snapping up domains will inevitably make it harder for small companies, individuals and startups to secure their corner in Web3.

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