What Is An NFT Domain? (Decentralized Domains Explained)

With brands like Unstoppable Domains and ENS becoming increasingly popular in the web3 space, NFT domains are beginning to gain more traction as sales steadily increase. But what is an NFT domain and how does it differ from a traditional domain?

NFT domains are web extensions published on the blockchain with new endings like .eth, .nft, .dao, and more. These domains are stored in your crypto wallet and can be bought and sold using cryptocurrency. Due to their decentralized nature, NFT domains can’t be censored or taken from their owner.

To learn more about NFT domains and all they have to offer, continue reading below.

NFT Domains Explained

NFT domains are new types of domain names that are minted (published) on the blockchain. Rather than the traditional domain endings we often see today (.com, .org, .net, .io, etc.), NFT domains are offered in various endings as well.

Here’s a list of the most popular NFT domain endings.

NFT Domain Name Ending	NFT Domain Provider
.eth	Ethereum Name Service (ENS)
.nft	Unstoppable Domains
.crypto	Unstoppable Domains
.bitcoin	Unstoppable Domains
.blockchain	Unstoppable Domains
.dao	Unstoppable Domains
.wallet	Unstoppable Domains
.zil	Unstoppable Domains
.888	Unstoppable Domains
.x	Unstoppable Domains

There are many terms used to describe an NFT domain, including:

• Web3 domain
• Decentralized domain
• Blockchain domain
• Wallet addresses
• Crypto addresses

That said, all these terms describe the same thing—an NFT domain.

NFT Domains (Web3) vs. Traditional Domains (Web2)

When it comes to similarities and differences between NFT domains and traditional domains, there aren’t many similarities, only major differences.

NFT Domains (Web3)

When it comes to NFT domains, there are some unique features that can only be had with them.

• Full ownership. Once you purchase an NFT domain, it’s s tored in and protected by your crypto wallet. If someone wants to gain access or control of your domain, they’d have to gain access to your web3 wallet.
• Can’t be censored. Since these domains are stored and hosted on the decentralized blockchain (a network of computers from all around the world), there’s no way that a single entity can censor what you use your NFT domain for.
• Websites are hosted on IPFS. NFT domains used to build a decentralized website utilize the InterPlanetary File System (IPFS)—a peer-to-peer network used for storing and distributing data in a distributed file system. This means decentralized websites are stored on numerous computers.

Traditional Domains (Web2)

As for traditional domains, they’re practically the complete opposite of NFT domains.

• Rented ownership. When you purchase a traditional domain name, you’re actually just renting it from the provider. Basically, you choose the number of years you want to use the domain name and then you pay annual renewal fees if you want to continue using it once it expires.
• Can be censored. Traditional domains can easily be censored or completely taken down by the web hosting provider.
• Websites are hosted on a centralized server. Traditional web domains are hosted on a web server (one computer).

What Can You Do with an NFT Domain?

Althoug NFT domains are still in their infancy, there are several things you can do with them. Below are some of their main use cases.

Create a Decentralized Website

These can function in a similar way to a traditional domain. You will type it into the browser and see the website and its content. Though you might need to use a special browser, like Brave, to view the decentralized web.  On other browsers, like Google, a special extension might be required. 

Own your online identity

Whether you run a small business or are working to build your personal brand, Unstoppable Domains allow you to own your online identity by purchasing your personal or business name. 

Of course, if a domain name is already taken by someone else, you can’t own that same domain name. You have to buy it from the current owner. But, with an unlimited amount of potential domain names and various domain endings, you’re sure to find a name that represents your online identity.

Use your domain name as your wallet address

Generally, your web3 wallet address is represented by a long string of letters and numbers. Because this address is randomized, it’s difficult to remember. When you own an Unstoppable Domain, you can use your domain name as your wallet address instead. 

This is better for business owners, as it’s easier for customers to remember and verify that they are dealing with the actual brand and not a potential scammer. 

Easily buy, sell, and trade your domain

NFT domains can also be bought sold, and traded as a normal NFT would be. With traditional domains, you would generally need to use a domain broker to sell your domain name. 

Many of these brokers aren’t very efficient and take 7% to 15% of the profit that you make from selling your site. 

However, you can easily list your NFT domain on the Unstoppable Domains’ marketplace or on a secondary NFT marketplace, like Opensea, in a matter of minutes and keep more of the profit.

Ultimately, selling an NFT domain is a lot easier compared to trying to sell a traditional domain.

Send and receive emails

Unstoppable Domains email provides you with an anonymized way to send emails while maintaining the privacy of your personal email address. 

Every Unstoppable Domain comes with a free “ud.me” address you can use with your personal email (Gmail, Outlook, etc.) or with Skiff, an end-to-end encrypted inbox.

If you choose to enable your ud.me email using your personal email address, all emails sent to your UD address will be forwarded to your personal email. 

This allows you to maintain the privacy of your personal email address while still being able to send and receive messages, and sign up for various platforms without sacrificing privacy.

Why Buy an NFT Domain?

You should buy an NFT domain if you want to flip them for a profit, build your own web3 website, or have a human-like wallet name as opposed to a long wallet address for receiving cryptocurrency. If you have an online business, an NFT domain will be necessary for the near future.

NFT domains provide a portal for customers to reach each other. People wanting to simplify crypto transactions under a single name to replace various wallet addresses look to purchase NFT domains. NFT domains are also used as URLs. They can be used to create censorship-proof sites while running without centralized servers.

Let’s take a look at the many pros and cons of using an NFT domain.

Pros and Cons of NFT Domains

NFT Domains have proven to be very profitable for a lot of investors in the market. With the world moving towards more secure domain ownership and domains having all their management done via smart contracts, there are a lot of benefits and some drawbacks to NFT domains. 

Let’s take a look at everything we need to take into account before buying an NFT Domain.

Pros of Buying an NFT Domain

• No Annual Fees
  There are no annual fees associated with NFT domains. With NFTs operating on a public blockchain, people are allowed to own their NFT domain outright. There isn’t any deadline to it, nor is there a need to renew the domain. There is only a one-time fee that the buyer must pay when purchasing the domain.

• Complete ownership and control
  It goes without saying that when you buy an NFT domain, you own your domain name outright. No one can force you to take it down, and you only ever pay a one-time fee to own your domain. 

• Send and receive cryptocurrency payments
  Users can easily send and receive cryptocurrency over blockchain networks and quickly log in to decentralized apps that support them. 

• Use a name rather than a wallet address
  NFT domains uncomplicate the different wallet addresses you might have, replacing them with a single human-readable name. With having one wallet address, all your payments and cryptocurrencies can be stored under one domain. It is much better and more memorable with NFT Domains as you get to pick the name of the domain you purchased making it easy for you to remember and others to remember.

• Simple transferability
  Similar to NFTs, these domains can be bought, sold, and can be held just like any other NFT. As the ownership is sole to one person, you can later sell off your domain and transfer ownership with the click of a button.

• Security
  Because your NFT domain is stored on the blockchain, your domain name is technically as secure as the blockchain is.

Cons of Buying an NFT Domain

• No record modification
  It is quite impossible to modify data or the records of who owns what on an NFT Domain. This is because NFT domains operate on a public blockchain. With no way to modify records, the transactions made under the domain will forever be in the record. Many may consider this a pro, however, some might consider it to be a con. 

• Not supported on all browsers
  NFT domains are currently supported by some popular browsers including Brave, Opera, Google Chrome, Firefox, and Edge. However, if there is a browser you are more accustomed to that isn’t yet supportive of NFT domains, this might be an issue for you.

• NFT domains will not appear in search results
  Search engines like Google will not showcase your NFT domain, yet. If you run a blog or another kind of site with valuable content, then you know that Google rewards your site by showing the world your website in the search results. As of now, NFT domains are not indexed by Google to appear in search results. However, I believe this is only a temporary issue.

• Risk factor
  If you are buying NFT domains as an investment, there is always a risk that others will not want to buy the domain name you’re selling. Similarly, there is no actual guarantee that the NFT domain name you bought will retain or appreciate in value.

Although some of these cons might not be terrible or are only temporary, they are concerns that are worth taking into consideration when purchasing your own NFT domain name.

Where to Buy an NFT Domain

There are two main NFT domain name providers you can choose from:

• Unstoppable Domains. You can buy NFT domains on UnstoppableDomains.com. Unstoppable is a decentralized NFT domain marketplace that allows you to buy NFT domains with no renewal fees, no minting fees, and no gas fees, meaning it’s a one-time purchase and you own your domain forever.
• Ethereum Name Service (ENS) domains. You can buy ENS domains

Buying an NFT Domain is similar to the traditional way of buying a Web 2.0 domain. Unstoppable Domains can be related to any site, page, or even wallet address. You can choose from a variety of domain suffixes including, .nft, .crypto, .wallet, .zil, .bitcoin, .dao, and more.

Besides the one-time initial payment for your NFT domain, Unstoppable Domains is nice because you can purchase your NFT domain using a debit card, PayPayl, or your Web3 wallet, giving you several options for purchasing your NFT domain. 

Additionally, you can use the Unstoppable Domain website to build your NFT domain or connect an existing Web 2.0 domain. The site offers many resources and step-by-step instructions to help you every step of the way, so even if this is your first experience with an NFT domain, Unstoppable makes it easy to use.

To learn more about Unstoppable Domains, make sure to check out our complete guide on Unstoppable Domains.

What Are the Best NFT Domains?

The best NFT domains are Unstoppable Domains due to their one-time purchase fee and no renewal fee structure. Plus, Unstoppable provides over nine different domain endings to choose from. And once your own an Unstoppable NFT domain, you own it forever or until you decide to sell it.

Although Unstoppable Domains are the best NFT domains, ENS domains are another extremely popular option. That said, Unstoppable and ENS domains do have their differences, but they are both premium options if you are looking to get your hands on your own NFT domain name.

Final Thoughts

Ultimately, NFT domains are the future of the internet. Soon, many websites and businesses will utilize NFT domains, and many of us will even move away from traditional, centrally controlled Web 2.0 domains because they simply lack everything NFT domains offer — ownership, control, security, and transparency.

If you are serious about the next iteration of the internet, and you want to start learning and laying down the foundation for your future—whether it be personal or business-related endeavors—NFT domains are a proper first step into the future of domain names.