What is an NFT domain?

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 to register one yourself.

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

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

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Excursion: Basic information about NFT

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

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

NFTs work with blockchain technology. Blockchain is a decentralized database that is mirrored on many computers. The background of blockchain is that it summarizes and stores its records 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 on the website and the domain. The NFT domain is stored on a wallet already known from cryptocurrencies. This makes you completely independent of the Internet.

You can register your NFT domains with different providers. Unlike normal domains, TLDs are not released by ICANN, but managed by the providers themselves. Examples of the top-level domains for 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.

Additionally, problems may arise in the future if ICANN officially manages the TLDs used and allows them into the domain name system.

How Domain NFTs Work

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

At the same time, domain NFTs act as wallet addresses. This provides another option 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 benefits of an NFT domain?

The main 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 option of significantly simplifying cryptocurrency trading.

To do this, you log into a decentralized application with your domain 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 just use your NFT domain.

In addition, with NFT domains you don’t have to count on recurring costs, but only 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 like OpenSea and paid for with cryptocurrencies. With a few providers, you also have the option to pay 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 of the various domain extensions. Prices vary widely for the finishes, you should expect prices from around 100 to several thousand US dollars.

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

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This article is part of our Web Hosting, Cloud Services and Domains content hub and is sponsored by IONOS.

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