An introduction to NFT domains, why they are important, and how to get started diving into them yourself.
Domains are something everyone that has ever used the internet has interacted with, and they have become a staple of the modern world. However, the technology behind that is largely centralized, resulting in a lack of real innovation that has limited their potential. NFT domains leverage blockchain technology to enable domains to be more than a website address.
What is an NFT domain?
Domains are used as a way to identify something online, most commonly websites. If it weren’t for domains, we’d likely have to type IP addresses (similar to a long phone number) that aren’t easy to remember. For example, “localcoinswap.com” is a standard domain name that is much easier to remember than a 12-digit IP address for every website you may want to visit.
NFT domains are special types of domains that essentially live on a blockchain in the form of a non-fungible token. While similar to many other kinds of NFTs in that each has its own unique traits and names, NFT domains can be used for things like payments alongside the things you traditionally see domains used for, such as viewing this page you are on right now.
Domains and Decentralization
As NFT domains are tokenized, the result is a much more decentralized approach to how domains are handled. Traditionally when registering a domain, you are relying on a centralized third party to firstly allow you to register the domain and then trust that they don’t decide to take it away from you or otherwise interfere with how you choose to use it.
With an NFT domain, you essentially have a digital certificate of ownership that is secured with smart contracts and leveraging the security of modern blockchains; this results in it not only being more secure but also much more powerful in the potential ways it can be used. As only do you have the ability to update your domain information it is now much safer to use it for things like payments,
What can you use an NFT Domain for?
- Simplifying cryptocurrency payments with easy-to-remember wallet addresses
- Receive cryptocurrency using the same address across multiple blockchains
- As a form of verifiable identity for personal or business use
- Host a website or other online service on it
- Login to supported applications
How do you get an NFT Domain?
If you’re interested in NFT domains, maybe you’d like to get one for yourself. Fortunately, it can be quite easy to do.
Step 1: Visit an NFT marketplace
The first step is to head to an NFT marketplace such as Unstoppable Domains, which are ideal as they can even be used when withdrawing funds from LocalCoinSwap, so they are an excellent option to consider.
Step 2: Decide on your preferred extension and domain name
As the popularity of NFT domains has increased, so have the options when it comes to choosing an extension or top-level domain (TLD). You can now choose between a number of different options, such as .nft .crypto .blockchain and even .bitcoin, so you have plenty of options from which to choose. Once you have decided on the extension to use, the next step is deciding what name you actually want to purchase.
Step 3: Check name availability
As NFT domains are unique, you can’t already claim a domain name that someone else has, so after you decide on a name you wish to purchase, you can use the marketplace to check the availability of the domain name, as well as other details like the price.
Step 4: Complete purchase
If you’re ready to proceed, you can move forward and complete your purchase by following the prompts to complete your payment and claim your domain. Of course, in many cases, you will also need to mint the token for the domain before being able to use it, but this is generally a pretty straightforward process when using a modern NFT domain marketplace and just requires following a few simple steps.
How to Store an NFT Domain
As NFT domains are similar to other forms of NFTs, you can store them in a wallet compatible with the blockchain on which they reside. For example, to store an NFT domain minted on the Ethereum network, you could use a non-custodial wallet like MyEtherWallet or MyCrypto. Alternatively, you could use a hardware wallet like a Trezor or Ledger.
Storing an NFT domain is very similar to storing other forms of cryptocurrency. The most important thing to remember is that not all wallets are compatible with all blockchains, so you must ensure you are using a suitable wallet. If in doubt, you can always contact the marketplace if unsure which wallets may be suitable for storing your purchased domain.
Conclusion
Decentralized domains can be a great way to make receiving cryptocurrency easier, but they can also enable you to participate in the movement towards a more decentralized future. The ability to purchase a domain and have complete control over it is pretty powerful, especially as more uses for these domains inevitably arise and existing use cases like application logins begin to be supported by more platforms you use daily.
As the demand for decentralized alternatives continues to grow, it’s a great time to explore NFT domains and discover how they can help you better connect with the world around you.