NFT domains’ popularity has skyrocketed in recent months, and it’s not hard to see why. They are decentralized; rather than renting them by paying third companies, you get to keep the domain as your own. To a large extent, NFT domains are functionally equivalent to those with more conventional extensions like .com,.media,.net, etc. Unfortunately, just a handful of TLDs, like .coin and .x, are available.
About NFT domains
Instead of being hosted on a server, these domains are privately held in a digital currency wallet. NFT domains, like conventional ones, can be used with web hosting services like WordPress to launch a website. When users purchase an NFT domain, they will be provided with a smart contract as proof of ownership, guaranteeing that a third party cannot take the domain away from them.
The primary purpose of NFTs is to establish the veracity and ownership of a single digital asset. That is, domain registrars are not required to sell you the rights to use a domain name. However, because of Web 2.0’s complex structure, these companies can still restrict your activities on their domains and even censor your content. In addition, they have costs that you, the customer, will be responsible for paying.
In addition to using your NFT domain name, you can host your website outside Web 2.0. Also, you can use your domain to access DApps (decentralized apps). You can use it as a cryptocurrency wallet without worrying about forgetting your crypto address, which reduces the possibility of inadvertently sending funds to the wrong address.
Nevertheless, not all browsers will support NFT domain names yet because they are still in the early stages and somewhat experimental. Many people may require plugins to view it. As blockchain domains are outside of ICANN’s purview, there needs to be more motive for traditional browsers to implement support for Web 3.0 domain names. Without a doubt, other browsers will eventually follow Brave’s lead and provide support for NFT domains.
Reasons why people use NFT
There are several reasons why NFT is popular among crypto enthusiasts. Below are some of these reasons.
No renewal fees
NFT domains, in contrast to traditional domains, are not available for rental. Unlike regular domains, there are no recurring costs. One good argument for switching to NFT domains is that they are entirely paid for once purchased. A registration cost will be associated with your purchase on a site like Cloudname. Simply said, once you’ve paid for an NFT domain, you own it and will never have to pay renewal costs again.
It makes crypto trade easier
You know how difficult crypto addresses can be if you’ve ever tried to move cryptocurrency from one wallet to another. Crypto wallets have a far less user-friendly approach than banks and online payment platforms, which use account numbers and email addresses that seem more like regular numbers and addresses. In reality, a cryptocurrency wallet address looks more like this: 1234ahgurj45678rucjcn82.
An NFT domain lets you use it as your cryptocurrency address, streamlining the sending and receiving of digital currency. Suppose your NFT domain is abcd.crypto, your contacts can send you money without memorizing a long string of digits and letters.
It does not centralize web pages
The fact that regular domains are governed by a single authority, such as a government, is a problem. The NFT, on the other hand, is not governed by any central authority. Therefore, your domain will not be accessible publicly through the state’s system like domains like .com.
They save money over the more conventional options.
Pros and cons of NFT domains
Pros
- They are readily transferable everywhere on the planet.
- They are under the complete control of their owners in a crypto wallet.
- Unlike regular domains, NFT domains do not cost anything to renew.
- The NFT domain is entirely transferred to the buyer, with no reversionary rights.
- Instead of the original crypto addresses made of letters and digits, they’re meant to be used.
Cons
- It’s not uncommon for domain extensions to have a less formal appearance than regular ones.
- NFT domains are problematic for local businesses because search engines do not index them.
- Not all web browsers are compatible with NFT domains since they use a different blockchain, the wp3.
- Finally, it’s important to remember that only Brave and Opera can display NFT domains.