What is an NFT domain?

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Anyone who wants to build their own website needs a domain. That’s why we introduce you to NFT domains, the new generation of domains, and show you how you can register one yourself.

Anyone who has previously registered a domain has opted for a provider and at the same time agrees that all website data is stored centrally on the provider’s servers. This is exactly different with NFT domains, because the data is stored decentrally.

In principle, everyone has the opportunity to register NFT domains. How exactly this works, we will show you in this article.

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Excursus: Basic information on NFT

Before we deal with the NFT domains, let’s first clarify what NFT is in general. NFT is the abbreviation for Non-Fungible Tok. Translated, this means “Non-exchangeable token”. A token is the digitized form of an asset. The token can have a certain value or a specific function.

An NFT is therefore a unique digital object. NFTs are currently particularly popular for digital artworks, such as videos or GIFs. The creator can then sell it and set individual rights.

NFTs work with blockchain technology. The blockchain is a decentralized database that is mirrored on many computers. The background of the blockchain is that it summarizes and saves its entries in blocks.

💡 By the way

In another article we will explain to you exactly what blockchain domains are.

What are NFT domains?

The technology behind NFT domains is similar in principle. The information about the owners of the domain is stored on the blockchain, as well as all content of the website and the domain. The NFT domain is stored on a wallet that is already known from cryptocurrencies. This makes you completely independent of the internet.

You can register your NFT domains with different providers. In contrast to normal domains, the top-level domains are not released by ICANN, but managed by the providers themselves. Examples of the top-level domains of the NFT domains are “.crypto”, “.nft” or “.x”.

The fact that the TLDs are not officially managed by ICANN can lead to problems. This is because the NFT domains are not entered in the root zone of the domain name system, which means that the websites cannot be opened with all browsers.

In addition, there could be problems in the future if ICANN officially administers the top-level domains used and allows them in the domain name system.

How domain NFTs work

Basically, domain NFTs work like normal NFTs: you can buy them, hold them or sell them again. So, NFT domains are crypto addresses that act as addresses of websites.

At the same time, domain NFTs serve as wallet addresses. This allows someone else to send you a specified amount of compatible cryptocurrency directly to your NFT domain address. This makes trading cryptocurrencies easier and easier.

What are the advantages of an NFT domain?

The biggest advantage of NFT domains is that you host your domain completely independently from the rest of the internet and you own it completely. As already mentioned, you also have the opportunity to significantly simplify trading in cryptocurrencies.

To do this, you register with your domain on a decentralized application and turn your wallet address into a simpler URL for trading cryptocurrencies. Your customers don’t have to remember a complicated sequence of numbers and letters, they simply use your NFT domain.

In addition, with NFT domains you do not have to reckon with recurring costs, but only with a one-time purchase fee. After that, it’s yours forever, with no additional fees.

Where to register an NFT domain?

NFT domains can be traded on NFT marketplaces such as OpenSea and paid for with cryptocurrencies. With a few providers, you also have the option of paying for your domain in other currencies, such as US dollars. It is important to note that NFT domains cannot currently be registered with traditional providers.

How to register NFT domains?

The actual purchase and registration of NFT domains is similar to the process of regular domains. The first step is to search for your desired domain name on an NFT marketplace. You will then see the availability and prices for the different domain extensions. The prices vary greatly for the endings, you should expect prices from around 100 to several thousand US dollars.

In the registration process you then link your crypto wallet, which must be supported by the provider – you should check this beforehand. Your NFT domain is then minted and stored in your wallet.

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This article is part of our content hub for web hosting, cloud services and domains and is sponsored by IONOS.

Source: https://www.basicthinking.de/blog/2022/05/05/nft-domains/

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