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The hype surrounding NFT domains began when several formerly Twitter now X users started transitioning their usernames with a name followed by a dotcom-like extension such as:
- uxsid.NFT
- username.ETH
- Itssocoolin.METAVERSE
Source: (1)
Captivating! Isn’t it?
It was cool back then until people started to realise its groundbreaking potential. It slowly started witnessing a massive adoption rate. Users got educated about its design established for the paradigm shift heralded by none other than Web3, the third iteration of the World Wide Web.
These cool extension’s impetus goes beyond simply being a username. NFT domains embrace a diverse range of applications from hosting decentralised websites, storing NFTs, associating digital collectibles, tagging virtual real estate and a variety of other purposes.
In this guide, we shall unravel this new-age decentralised domain name ecosystem. With deeper insights into its web3-oriented capabilities and also compare it with traditional domain name systems.
What are NFT Domains?
NFT domains are a new-age domain name system developed for Web3, the third iteration of the World Wide Web. It is decentralised by nature and operates on Blockchain technology. Each NFT domain is uniquely distributed, ensuring no duplicates are minted via smart contracts.
Smart contracts firmly validate and assure its singularity. This separate blockchain nomenclature establishes a safe and plagiarism-free environment. Web3 itself is established to address the shortcomings of the previous version and NFT domains are its first step toward fixing everything the right way.
NFT domains are an unimagined evolution of traditional domains, a predominantly utility-driven concept:
- NFT domain names can be optimised to host a decentralised Web3 website.
- NFT domain names can be optimised to personalise digital wallets.
- NFT domain names can be optimised to personalise Web2 social media usernames.
- NFT domain names can be optimised to tag Metaverse properties.
- NFT domain names can be optimised for connecting Virtual Reality digital estates we a personalised naming system.
- NFT domain names can be optimised to develop personalised Virtual Reality identities.
Note that: These are primary functions of NFT domains. It is yet in the active development phase and continues to progress and expand. The array of its use cases and functionalities is expected to expand in the coming years.
NFT Domains | Web3 Domains | Crypto Domains | Decentralised Domains | Blockchain Domains | Metaverse Domains
NFT Domains, Web3 Domains, Crypto Domains, Blockchain Domains, Metaverse Domais and Decentralised Domains all share a common premise but the difference lies solely in the foundational background connected with the associated extension.
The names vary to reflect the various settings and usage scenarios but at the base, they all represent domain name systems that rely on blockchain and decentralised technology. In simple terms, a username uxsid.BTC can be called a Crypto Domain.
Are NFT Domains a good investment?
The viability of NFT domains as an investment depends on your underlying goals. If the goal is to acquire profit by selling these decentralised domains for resale, the current market period may not be ideal. The market is still in the growing phase and is not yet mature enough for rolling domain names.
However, if the goal is to optimise the functions and explore the potential of these decentralised domain names, then it can be considered a good investment. We recommend developers to optimise this situation and explore the technology to uncover explored sections of this technology.
Also, for those contemplating NFT domains as a passive income source, the future is yet unpredictable. Currently, NFT domain names showcase promising futures but their long-term viability remains questionable, similar to the volatility of cryptocurrencies.
This cautionary emphasises the importance of being prepared for unforeseen events. However, if you wish to sell NFT domains, it would be hard for you to find a buyer. The technology has potential but it also depends on some elements.
Web3, the Metaverse, Virtual Reality, Blockchain Technology, Cryptocurrency or the entire decentralised technology is what the adaptability and potential of NFT domains depend upon. But we do emphasise that this technology to get mainstream, which we can expect until 2030.
Source: (2)
Source: (3)
