Web3 Domains - What Are They and How They Work

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With the introduction of Web3 technologies, people will once again have control over decentralisation, security, and ownership of their online experience. The introduction of Web3 domains, which represent a significant break from the conventional domain name scheme, is one of the key components of Web3. We will explore the definition of Web3 domains, their operation, and the possible ramifications of this revolutionary development in the digital sphere in this extensive read.

What are Web3 Domains?

One of the primary components of Web3 technologies that aim to replace the conventional Domain Name System (DNS) on the internet are Web3 domains, sometimes referred to as decentralised domains. They provide people more ownership and control over their digital assets and online appearance by providing a decentralised, secure method of registering, maintaining, and controlling domain names.

How do Web3 Domains Work?


The functioning of Web3 domains can be understood in the following ways: 

  • Resolving Addresses: The IPFS (InterPlanetary File System) content address associated with a Web3 domain is retrieved by the decentralised domain system through a query to the corresponding blockchain when a user visits a website with that domain. In essence, the IPFS content address serves as a special identification for the domain-related online content.

  • Content Hosting on IPFS: The actual web content associated with a Web3 domain is housed on the IPFS network rather than traditional web hosting servers. A peer-to-peer, decentralised file-sharing system called IPFS guarantees data availability, integrity, and resilience to censorship. The content address, which is typically a cryptographic hash, identifies the online content's IPFS location.

  • Blockchain-Based Registration: There are many blockchain networks that  are used to register Web3 domains. On the blockchain, every domain is represented by a non-fungible token (NFT) or other comparable digital asset. A private cryptographic key is used to guarantee ownership and control of the domain through this tokenized form. Like digital properties, domain names are essentially assets that are registered on a blockchain.

  • Ownership and Control: Users have complete control and ownership of their Web3 domains. They don't need to use conventional registrars or hosting companies to update, change, or transfer their domain. No one can change or take over the domain without the owner's permission because ownership is linked to the private key connected to the domain's blockchain registration.

Advantages of Web3 Domains 

A vital part of the Web3 ecosystem, Web3 domains have many advantages that are changing how we use the internet. Among these advantages are:

  • Decentralisation: Web3 domains do not require centralised authority and domain registrars. Due to the increased control that domain owners have over their online presence, this decentralisation lowers the likelihood of censorship. Additionally, it lessens the internet's dependence on a small number of central organisations that might be exploited or corrupted.

  • Improved Security: Web3 domains are more secure by nature. The ownership and registration details of a domain are less vulnerable to hacking, domain hijacking, and unauthorised modifications because they are kept on a blockchain. For companies and individuals that wish to safeguard their online assets, this additional layer of security is very essential.

  • Immutable and Reliable Records: Web3 domains' blockchain technology guarantees the immutability and reliability of domain ownership records. It lessens the possibility of conflicts and unauthorised domain transfers. Users can look for domain ownership with confidence by looking through the public ledger on the blockchain.

  • Portability: Web3 domains can be registered with any registrar or hosting company. Users can effortlessly move their domains to other hosting providers or even to other people thanks to this portability. It lessens provider lock-in and streamlines domain maintenance.

  • Websites Resistant to Censorship: Web3 domains make it easier to create websites that are resistant to censorship. This is especially crucial in areas where governments strictly regulate what can be found online. Users in these places can continue to express themselves online without worrying about censorship or takedowns.

  • Censorship resistance: Web3 domains provide censorship resistance, making it very difficult for governments or other organisations to block or remove websites. There is no one point of control because the data regarding content location and domain ownership is dispersed throughout a decentralised network. This complicates the operation of conventional takedown methods.

  • Ownership Rights: Users basically lease domain names from registrars when using conventional domains. Web3 domains, on the other hand, provide users actual ownership. On the blockchain, domain owners are in charge of their domains through their private keys. More control and the ability to transfer or sell domains without the need for middlemen are made possible by this ownership arrangement.

  • NFT Marketplaces: As non-fungible tokens (NFTs), Web3 domains are frequently purchased and traded. Users can now exchange valuable digital assets on a new market that has been developed as a result. These digital properties get value and distinctiveness from the union of NFTs and Web3 domains.

  • Resilience to Conventional Shutdowns: Web3 domains are resilient to conventional internet shutdowns because of their decentralised structure. Because it uses a distinct infrastructure, a Web3 domain can continue to function even if a standard domain (like a.com) is taken down.

  • Safe Digital IDs: Web3 domains can act as a base for digital identities that are both portable and safe. Users have the ability to safely manage their online presence and personal data by connecting their digital identity to their Web3 domain. This has effects on data ownership and internet privacy.

Challenges Related with Web3 Domains 

There is no question to the fact that Web3 domains are the way to the future and offer many benefits to the user. However there are certain risks and challenges associated with it. For the user to make the most of this technology, finding the right solution to these problems are a must. The challenges include: 

  • Problems with interoperability: Various blockchain networks and systems could implement the Web3 domain differently. This may cause incompatibilities and make it more difficult for Web3 domains to integrate seamlessly across different platforms. When interacting with various blockchain networks, users may find it challenging to navigate and use these domains.

  • Difficult User Experience: Compared to utilising standard domain registrars, administering Web3 domains might have a more complicated user experience. It entails navigating decentralised applications (dApps), managing blockchain wallets, and private key management. This intricacy may prevent further acceptance because it can be frightening to non-technical users.

  • Domain Front-Running: A concern associated with certain Web3 domain systems is the possibility of front-running, in which unscrupulous players keep an eye on attempts to register domains and steal valuable names before their intended owners have a chance to do so. Unfair practises and domain name speculation may result from this.

  • User Errors: Users must exercise extreme caution when registering, transferring, or administering Web3 domains due to the irreversible nature of blockchain transactions. Asset loss could arise from a simple typo in a private key or blockchain address.

  • Limited Adoption: Web3 domains are still very new, and there are many obstacles to overcome before these technologies are widely used. Infrastructure development, user education, and resolving the previously mentioned complexity and interoperability challenges are necessary for mass adoption.

What are Conventional Domains?

Conventional domains, as we currently understand them, are the familiar web addresses, such as www.example.com, that people use to access websites. They are registered through domain registrars, hosted on centralized servers, and managed by internet infrastructure companies.

A defining characteristic of conventional domains is their centralized nature. Domain registrars, DNS operators, and hosting providers wield significant control over these domains. They possess the authority to suspend, alter, or even confiscate domains, thereby presenting security and censorship concerns.

In the conventional domain system, users essentially rent domain names from registrars, often paying recurring annual fees. This ownership model provides users with limited control and ownership, without establishing a direct link between the domain name and the owner's digital identity.

Difference Between Web3 Domains and Conventional Domains 

The differences between Web3 domains and conventional domains can be understood in the following ways:

  • Security

Conventional Domains: Because of centralised control, these domains are susceptible to hacking, domain hijacking, and unauthorised changes.

Web3 Domains: Stronger defence against online attacks thanks to blockchain technology, which makes them inherently more secure.

  • Censorship Opposition

Conventional Domains: Open to censorship by government agencies or domain registries.

Web3 Domains: Uncensorship-resistant, making it harder for organisations or governments to shut down websites.

  • Possession

Conventional Domains: Registrars rent out domain names to users.

Web3 Domains: Since users possess private keys and domains are tokenized on the blockchain, true ownership is possible.

  • Mobility

Conventional Domains: Limited portability due to affiliation with particular registrars and hosting companies.

Web3 Domains: Less lock-in, easily transferred to other platforms or people.

  • Digital Personality

Conventional Domains: Inadequate personal digital identity integration.

Web3 Domains: The basis for portable and safe digital

Web3 domains are an essential step for reshaping the internet into a more decentralized, secure, and user-centric space. They offer the promise of a digital environment where users have true ownership of their online presence, censorship is more difficult to achieve, and security is enhanced. As Web3 technologies continue to mature, Web3 domains are expected to play a pivotal role in the future of the internet.