Domaining — investing in domain names with the intention of selling for profit — has become an increasingly popular activity over the past two years. There are in total about 340 million names registered, and the global domain name registrar market is expected to reach over $1 trillion by 2027.
Decentralized domains make up a small but rapidly growing part of the global market. Ethereum Name Service (ENS) — the most widely-used Web 3.0 naming system — has consistently been one of the most traded non-fungible token (NFT) projects, attracting Web 2.0 giants like Puma and NBA and celebrities like Jimmy Fallon and Paris Hilton.
Even GoDaddy, the Web 2.0 domain juggernaut, has acknowledged that Web 3.0 identities are capturing a lot of attention from traditional domainers and recommended “defensive registrations” to its clients as a way to secure their brand domains.
But what exactly are Web 3.0 domains? How do they work?…
