Big brands like Tesla, Pfizer, Walmart and JPMorgan are warming up to decentralized domain names, signaling that even corporate entities see the value in user-owned digital identities. In fact, a mighty 11% of the latest Fortune 100 list now own Web3 domain names via the domain provider Unstoppable Domains. Why? Because brands want to secure their online presence like never before. Thanks to innovative companies like Unstoppable Domains and the collaboration of the newly formed Web3 Domain Alliance, these big players are attempting to shut down impersonators and model what taking control of one's digital identity could look like.
So, what are decentralized domain names? Think of them as the next evolution of web addressing. Unlike traditional domain names that are centrally managed by registrars, Web3 domains leverage the power of blockchain technology and are stored and managed on decentralized networks. This decentralized infrastructure is designed to provide greater ownership, security and resistance to censorship.
Registering a Web3 domain name offers a host of benefits for individuals and businesses alike. For starters, these domains can serve as convenient substitutes for wallet addresses. But that's not all — they can also function as traditional domain names, allowing for fully functional websites. They even act as login credentials for decentralized apps (dApps), replacing those complex wallet addresses with user-friendly usernames. And here's the kicker: they provide a seamless and frictionless way for people and businesses to send and receive cryptocurrencies. It's like having a unified and verifiable social page that showcases your NFT collection, highlights your blockchain achievements and acts as a recognizable handle for your Web3 presence — both professional and social.
The adoption of decentralized domain names by major brands like Tesla, Walmart, and Pfizer speaks volumes. These companies recognize the potential of Web3 technologies and understand the importance of securing unique brand names to prevent impersonation and domain squatting. Sandy Carter, COO and head of business development at Unstoppable Domains, believes that decentralized domain names offer three compelling advantages for businesses: Firstly, they bring practical utility by offering integrations like encrypted email and personalized avatars that can travel across multiple metaverses. Secondly, they provide verifiable branding, allowing businesses to transparently showcase their achievements and event participation. And lastly, they facilitate meaningful interactions within communities, promoting engagement and loyalty through rewards.
"These rewards could be tied to any kind of activity — from the total number of company related badges they hold, to active participation in brand-related activities like purchasing goods or attending events," explained Carter. "Thanks to this functionality, brands can create more user facing ecosystems and increase engagement with their communities."
But it's not just about the big brands, says Carter. Partnerships within the Web3 ecosystem are key to enhancing the accessibility and safety of decentralized domains for everyone. Known as interoperability, the ability for users to interact from blockchain to blockchain is going to be a considerable prerequisite for mainstream Web3 adoption. For this reason, Unstoppable Domains united with a cross-chain coalition of domain providers, including Tezos Domains, Polkadot Name System and Klaytn Name Service, along with other leading Web3 players to form The Web3 Domain Alliance. The coalition focuses on preventing and protecting consumers from domain name collisions. These collisions occur when different naming systems issue domains under the same Web3 top-level domain (TLD), like .crypto or .nft. By preventing name collisions, the integrity and authenticity of registered Web3 domains are preserved, giving owners peace of mind and thwarting impersonation attempts.
Establishing partnerships plays a vital role in enhancing the accessibility and safety of decentralized domains for both users and businesses in the Web3 ecosystem. One such notable partnership is between Webacy and decentralized domain name providers. Webacy, a comprehensive suite of self-custody wallet tools, integrates decentralized domain names into its dApps. By incorporating decentralized domain names, Webacy enhances user safety and provides a range of valuable features. These features include a risk assessment tool, which helps users evaluate potential risks associated with transactions and interactions in the Web3 space, as well as a wallet watch function to monitor wallet activity, a backup wallet feature for secure data storage, and even a panic button to quickly address any emergencies. Through partnerships like these, businesses and users can benefit from a safer and more user-friendly Web3 experience, with decentralized domains seamlessly integrated into essential tools and services.
In conclusion, decentralized domain names are revolutionizing web navigation and empowering individuals and businesses in the decentralized ecosystem. They simplify interactions, enhance user experiences, and are gaining traction among major brands. Collaborations and initiatives such as the Web3 Domain Alliance and brand protection measures ensure the integrity of decentralized domains, protecting against fraud and impersonation. As Web3 continues to shape the future, decentralized domain names will play a vital role in secure online interactions, enabling businesses to enhance their presence and create engaging user ecosystems. It's a game-changer in the world of web addressing — and it's only getting started.
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Amanda Hyslop (aka MizzuzB) is a writer in Web 3 exploring the intersections of culture, finance and technology. She is an avid NFT collector and advocate for women building on the blockchain.
This is not financial advice. If you don't want to spend money investing in crypto or Web3 — you don’t have to. The intent of this article is to help others educate themselves and learn.
