What is an NFT Domain - Everything You Should Know
NFT domains are becoming more trendy and popular online, and we can easily understand why. These domains share many similarities with regular domains but with a few key differences.
Understanding how NFT domains work and the principle behind them can be difficult. However, we’ve gathered all the information you need to know before diving deeper into the subject. Here is your ultimate guide to what an NFT domain is, how they work, what control you have over them, and more.
What are NFTs?
First things first, let’s clarify what NFTs are and what their technology is capable of. NFT stands for Non-fungible Token.
You can either buy or sell a token and they are unique which means they cannot be replaced by something else. NFTs cannot be exchanged with others since they all have different values.
What made NFTs so famous were initially photos – some of them sold for millions of dollars. For example, the artist Beeple sold a digital collage as an NFT for $69 million. But, nowadays, everything can be tokenized to become an NFT – music, software, photos, and, in our case, domains.
NFTs have a sole owner and cannot be copied. In addition, they are not centralized, meaning that no one can take them away from you.
What is an NFT Domain?
The system behind NFT domains seems difficult to understand due to the connection to the blockchain. First of all, on the front end, these domains look precisely like standard domains ending in .com, .x, .nft, .coin, to mention only a few.
The most popular blockchain is by far Ethereum. However, Polygon Network, Ripple, R3 Corda, and Quorum are other well-known platforms. They are launched using smart contracts on the public blockchains.
Instead of being stored in a server like regular domains, these domains are stored in a wallet, similar to cryptocurrencies. Aside from this feature, there are some fantastic advantages to choosing NFT domains instead of standard ones, and we’ll go through them all in the following paragraphs.
What are the Advantages of NFT Domains?
As mentioned previously, one of the pros of NFT domains is that they are stored in a wallet rather than in a server, and that gives you more control over them. But let’s focus on other benefits.
As opposed to regular domains, NFT domains have no renewal fees and, once you’ve purchased them then it’s yours for life.
Apart from that, a very nice feature of NFT domains is that no one can take your domain away from you, and they cannot be seized. In fact, these domains are not centralized and, therefore, you’ll have complete control over yours.
Moreover, these blockchain domains can be transferred all around the world in a few seconds only without waiting for authorization from a third party.
What are the Downsides of NFT Domains
While we can easily see the good things about NFT domains, it’s essential to identify the pitfalls as well. The main downside of these domains is that their extensions aren’t as attractive as traditional ones and definitely don’t look as professional.
The existing NFT domain extensions available are:
We can agree that a domain ending by .com, .net, .it, .media, or .org generally looks better than those above. That being said, these extensions are mainly used to replace crypto addresses, and new extensions will most likely be launched in the future, attracting more users from all around the globe.
Apart from that, while they’re genuine, these NFT domains are based on the web3 blockchain, and not all browsers support it. For instance, you could host your NFT domain on a platform like WordPress, but only 2 browsers can currently display the website – Opera and Brave.
Last but not least, as much as you optimize your website, you will not be able to rank it on search engines. In fact, Google doesn’t index NFT domains, which can be a problem for local businesses.
Replacing Your Crypto Address with Your URL
One of the biggest benefits of having an NFT domain is that you can use your URL as a cryptocurrency address, making it much more readable.
Typically, a crypto address is made up of random numbers and letters which can’t be read. For instance, 83ene757fhfi50. But, if you were to purchase an NFT domain with the URL “crypto.coin” people would be able to transfer money or assets to you using this URL.
Remember that no one else other than you can control your domain and, therefore, you’re the only person identifiable with it.
How to Add Your NFT Domain to Your MetaMask Wallet?
While all crypto wallets will eventually accept NFT domains, let’s take the MetaMask wallet as an example, of how the process works.
Once you’ve purchased your NFT domain name, head over to PolygonScan and type your Ethereum address. From there, you will need to select the token “Cloudname” in the drop-down menu.
After that, you can see “Contract” with a series of numbers on the right-hand side of your screen. This is your smart contract. Copy this series of numbers. Go back to MetaMask and click on “Import Tokens” at the bottom of your screen. The system will ask you the “Token Contract Address” that you just copied from PolygonScan. Paste it here.
Choose the Token Symbol “Cloudname” and, on token decimal, type “0”. Once you fill in this simple form, you can click on “Add Custom Token” and then “Import Tokens”. You’re done, and you can now see your NFT domain in your crypto wallet.
How Much Do NFT Domains Cost?
NFT domains vary in cost depending on the extension (.x, .crypto, .888, etc.) and can be as low as $20 and generally cost a maximum of $100.
That being said, in some instances where the domain name is popular, the NFT domain can cost as much as $250,000.
Can You Buy Any NFT Domain?
While you can buy most domain names you can think of, you can not get your hands on premium or reserved ones – generally called Protected or Premium NFT domains. Domain names associated with brands like Nike or Facebook, notable individuals like Cristiano Ronaldo or Arnold Schwarzenegger, and organizations like the United Nations are not on sale.
Naturally, these are reserved domains, and they will most likely be sold to these individuals or corporations in the future rather than third-party investors.
Now that you understand what an NFT domain is, you can consider getting one and investing in it for the future. NFT domains offer multiple advantages, from replacing cryptocurrency addresses to avoiding constant yearly renewal fees. Always take the time to understand potential risks before investing in an NFT domain, to ensure you have all the facts to make an informed decision.