5 Real Benefits of Using a Web3 Domain
Accessing multiple Web2 apps and protocols can be cumbersome. A case study revealed that most online gamers had to log in to multiple apps with different IDs and passwords to launch a game interface, resulting in a poor overall experience. This inability of Web2 apps pushed many online gamers to switch to decentralized domains.
Web3 domains are multipurpose means of communication for blockchain users. They serve as gateways to the decentralized internet and help you manage your digital assets, including cryptocurrency wallets, dApps, NFT collections, etc.
Going beyond seamless accessibility, Web3 domains offer unmatched security, scalability, and transparency, attracting people from different walks of life to switch to blockchain technology. This post will discuss the top 5 benefits of using a Web3 domain.
If you are interested to know more about this topic, read our article on the reasons why everyone should own a Web3 domain today.
Why Do You Need a Web3 Domain?
Enhanced Security
While Web3 domains work similar to Web2 domains, they offer better security, thanks to the blockchain technology. A decentralized domain gives you complete control over your digital asset, NFT, data, or any form of content.
Here’s how Web3 domains ensure enhanced security:
1. Tamper-proofing
Web3 domains provide cryptographic key encryption, storing your credentials on a local device. Similarly, whenever you make a transaction on the blockchain, it is stored in a separate block containing a cryptographic hash of the previous block, ensuring it is immutable.
2. Blockchain-based Validation system
Web3 sites leverage blockchain technology to identify and check transactions, ensuring that approved users can access the network data.
When you enter a Web3 domain name in your blockchain-powered browser, it communicates with a blockchain network where every domain is already stored in a highly secured ledger. Since the network is decentralized, no party can compromise it.
Next, smart contracts access the intended information stored there, verify the domain and communicate the associated IP address to the browser. The browser gets the IP address to connect to the intended domain.
Decentralized Control
As discussed above, many businesses and individuals have been switching to a Web3 domain because they offer complete ownership and control.
You can build a website and produce content without facing any bans or penalties – or you can mint your domain on blockchain to resell it later. There are no renewal charges, no matter how long you keep a Web3 domain. But more importantly, your data is protected from cyber threats.
Web3 domains have a decentralized strategy for data distribution. The data is scattered and saved in nodes across a network of peers, making it much more difficult for cybercriminals to target a singular victim.
The main purpose of the distributed data is to disperse power instead of storing it in a central server/database location, making it vulnerable to cyberattacks.
Decentralized storage offers a number of benefits:
- The Web3 ecosystem is able to withstand failures. If one node goes down, it will not affect the functioning of other active nodes hence, the data will remain safe.
- Blockchain users can participate in policymaking and strengthen blockchain’s overall security through feedback.
Improved Privacy
Improved privacy holds significance when you run an online business that handles sensitive information, like financial data or medical information of your clients. As far as privacy is concerned, decentralized domains render a higher level of anonymity than traditional domains.
It’s more like end-to-end encryption, allowing you to keep your personal information safe and giving you the authority to determine who can access and use your data.
1. Protecting Your Personal Information
Upon registering your Web2 domain, you have to provide your credentials – name and location.
Unlike traditional domains, where your credentials are stored in a WHOIS directory on a central server, Web3 domains give you the option to keep your personal information private. Instead, the information is stored on a local device, ensuring protection from cybercriminals.
2. Accessibility
A classic example of compromised privacy is Web2 browsers and social networks. Platforms like Facebook, Instagram, and Google provide unrestricted access to user’s personal information, making their data vulnerable to theft.
While each implements security protocols to maximize data privacy, many users still complain about data breaches or thefts.
A report related to social media hacking revealed some shocking facts:
- An attempt to sell 1.5 billion stolen Facebook accounts was already made in September 2021.
- Nearly 1.4 billion accounts are being hacked every month.
- Google says 20% of social media accounts are likely to be compromised at some point.
In comparison, Web3 gives creators complete control over their data. They are free to decide who can access their data and how they can access it. They can also restrict data-sharing if they don’t want to make their information public.
Interoperability
Did you know that the Base network allows you to interact with over 17000 protocols and dApps using a single Web3 domain? Like Base, there are many other networks and thousands of dApps that you can manage with your unique decentralized domain.
Web3 domains are interoperable, offering lots of customization choices to build a strong blockchain-powered portfolio:
- You can integrate your cryptocurrency wallet with your blockchain-based domain, and there are no wallet limits.
- Web3 domains can be integrated with your NFT collection, Metaverse asset or dApps.
- You can create smart contracts and add them to your Web3 domains. A smart contract for transferring money to vendors will not only save time but also prevent payment-related hassle.
- You’re free to integrate as many subdomains (basically separate sites) into your principal Web3 domain.
There is no need to create separate login IDs or passwords, as you can manage all your digital assets and domains using a single identity.
Long-Term Cost Efficiency
There is a clear cost-benefit when considering Web3 vs traditional domains.
1. Why Traditional Domains Are Expensive
To acquire Web2 domains, individuals must go beyond budget. First, they must choose a domain name and ensure that its domain extension holds value.
Domain extensions like .com, .org, .net, etc., reflect legitimacy. These extensions have occupied the majority of the Web2 domain space, making it virtually impossible for other TLDs to penetrate the market. This is why they’re pricier.
Secondly, after registering a domain name, you need to pay the renewal fees almost every year. Failure to do so would result in automatic deactivation.
In addition, you have to operate your domain according to the guidelines provided by ICANN; otherwise, you will face penalties or bans. Moreover, you may have to invest in plugins and ad-ons to add more dynamics to your Web2 domain.
These factors make it virtually impossible for new players to buy Web2 domains and use them at will.
2. The Cost-Benefit of Web3
On the other hand, the Web3 ecosystem has a lot of room for newcomers and potential investors. Web3 domains are reasonably priced. For example, you can buy a Web3 domain from Freename.io for just $5.
On top of the price benefit and permanent ownership, Web3 domains are free to operate. What makes them more feasible is their ability to integrate with various blockchain products, such as dApps, crypto wallets, NFTs, and more.
| Are you interested in knowing more about how the Web evolved over time? Read our research. |
Conclusion
The decentralized approach of blockchain technology makes Web3 domains ideal for modern-day online interaction. Considering factors like data security and integrity, customization, integration, and long-term cost benefits, decentralized domains have a clear edge over traditional domains.
Web3 is still in its infancy, so there is a lot of vacant space for potential businesses and investors. There’s still a lot to be expected as new users become part of the Web3 ecosystem. It’s an ideal time to buy Web3 SLDs and TLDs to make the most of them in the future.
With Freename, you can buy Web3 domains at fairly reasonable prices and secure a space for your brand. Explore attractive investment opportunities or simply mint domains on blockchain to resell later. But we’d recommend registering a TLD and making it a passive income stream for yourself.
So, what are your plans?
