Web3 Domains vs Traditional DNS Domains: A Comparison

web3 domains vs traditional dns comparison

With the advent of cryptocurrencies and blockchain technology, tech enthusiasts and crypto experts discovered a new functionality that, although previously unheard of, could revolutionize the very concept of privacy and data ownership—Web3 and Web3 domains.

Today’s internet relies on a foundational system called the Domain Name System (DNS). This system acts like a massive phonebook, converting regular website names into complex IP addresses that computers can understand. However, with Web3, a new era of the internet is on the rise with a new approach to domain ownership – Web3 domains.

This shift has massive implications for how we interact with the online world. Understanding the critical differences between Web3 domains and traditional DNS is extremely important for anyone navigating the future of domain ownership and the decentralized web.

This article explores the building blocks of the decentralized web in contrast to the traditional DNS. In essence, the present versus the future of domain ownership.

Web3 Domains vs Traditional DNS Domains: Quick Comparison

This comparison table provides a concise summary of the critical differences outlined in the article between Web3 domains and the traditional Domain Name System (DNS). This table serves as an introduction to the deeper exploration in the article, highlighting how these two domain systems shape our interaction with the digital world.

FeatureTraditional DNSWeb3 Domains
OwnershipTypically rented; requires annual renewal fees.Permanently owned; no renewal fees after initial registration.
Control and AuthorityCentrally controlled by organizations like ICANN.Decentralized; control lies with the domain owner.
PrivacyWHOIS directory lists owner details, which can be masked but not omitted.No personal information required; owner details remain pseudonymous.
SecuritySusceptible to censorship and centralized points of failure.Enhanced security due to decentralized storage and blockchain technology.
Domain ExtensionsStandard extensions (.com, .net, .org, etc.).Innovative extensions (.crypto, .eth, .nft, etc.).
UsabilityUsed mainly for website addressing.Can replace complex wallet addresses, enhancing cryptocurrency usability.
TechnologyRelies on a network of DNS servers to resolve domain names.Operates on blockchain technology, enabling on-chain resolution.
Domain Sale and TransferRequires a registrar and often incurs transfer fees.Direct and transparent sale/transfer via blockchain, often without fees.
Development StageMature and widely supported across all platforms.Still developing, with limited browser support and evolving standards.
ApplicationsPrimarily for navigating to websites.Broader applications including identity management and decentralized web.

What is a Domain Name System (DNS)

The Domain Name System acts by translating a given domain name into an IP address character set with the help of a Domain Name System Server.

Although there are millions of servers all over the globe, they all act as a singular database. That is why when you input a domain name into your search browser, the browser communicates with the name server so as to find the IP address matching that name.

How Does a Traditional DNS Work?

The traditional Domain Name System works by converting a domain name into a set of characters called an Internet Protocol (IP) address with the aid of a DNS server. However, since all internet-enabled devices are assigned an IP address, for a webpage to load successfully, it must pass through four (4) DNS servers:

DNS Recursor

The DNS Recursor is similar to a librarian who is tasked with finding a particular book in a library. The DNS recursor is a server designed to receive queries from a client’s machine through applications known as web browsers. This recursor is responsible for making extra requests to fulfill the client’s DNS query.

Root Nameserver

The root server is tasked with resolving human-readable host names into IP addresses. Think of it as a book index that points to different words/phrases in a book. 

TLD Nameserver

The top-level domain (TLD) can be likened to a specific shelf in a library. The TLD nameserver hosts the extension or ending of a hostname and is the third step in the search for a specific IP address.

Authoritative Nameserver

This can be said to be the final boss in the search for a specific IP address. The authoritative nameserver is like a dictionary that holds the information about DNS records.

What are Web3 Domains?

Web 3 domains are similar to traditional DNS, such that they operate using web extensions. However, unlike traditional DNS, they are launched on smart contracts hosted on public blockchains. 

Web3 domains as a service give the user a decentralized crypto domain, using blockchain technology to facilitate domain name registration and resolution entirely on-chain. They are often referred to as Non-Fungible Token (NFT) Domains. 

The impact of the Web3 domain service is massive, as users can now register unique domain names that can replace their wallet addresses and decentralized websites (DWebs).

What are Web3 Domain Extensions?

Similar to TLDs of traditional DNS, Web3 domain name extensions refer to the suffix in a URL. Web3 domains offer greater freedom in selecting your preferred extension (e.g., .eth, .bnb). 

Web3 domain extensions are becoming increasingly popular, and it is quite easy to distinguish them from traditional top-level domains (TLDs). Some examples are:

  • .eth
  • .polygon
  • .wallet
  • .btc
  • .bitcoin
  • .web3
  • .crypto
  • .nft
  • .zil
  • .blockchain
  • .coin
  • .888

Applications and Benefits of Web3 Domains over Traditional DNS

While traditional domains focus primarily on websites, Web3 domains are proving to be more than that. These blockchain-based domains offer a range of possibilities that are tightly linked to the world of cryptocurrency – especially ownership and decentralization.

Some of the main advantages of Web3 domains over Traditional DNS include:

  • Verifiable ownership
  • Pseudonymous identity
  • Decentralized and secure storage
  • Simplified wallet addresses
  • Self-sovereign identity

Verifiable Ownership and Free Sale

We are probably used to buying website domains from companies such as Google Domains or GoDaddy. ICANN accredits these registers and holds significant control over your website domain. When you purchase a traditional domain, you’re more or less making a rental purchase since even though you possess the right to use the name for a period (usually a year), you still need to pay the renewal fees or risk losing the domain.

However, that is not the case with Web3 domains. Once minted (registered) on a blockchain, the domain becomes yours and is permanently linked to your crypto wallet. No one can take it away unless you decide to sell it. And since all transactions on the blockchain are visible to the public, the owner’s identity is verifiable at all times.

With Freename you not onlycan registered your Web3 domain but you can even become a Web3 registrar by creating or buying a top-level domain and earning a passive income for registrations within that domain. 

Pseudonymous Identity 

When you buy a traditional domain name, registrars collect your information and store it in a central registry controlled by ICANN, called the WHOIS directory. While some registrars might mask your details with their own, their privacy policies can change. Ultimately, registrars hold your data; depending on their location, governments can legally compel them to disclose it. 

Web3 domain registration offers a stark contrast. You’re identified solely by your crypto wallet address, where your Web3 domain is stored. This emphasis on privacy and security is in line with blockchain principles of protecting private user data with unique identifiers that keep their real-world identities pseudonymous. The blockchain shows public wallet codes, not your personal details, safeguarding your privacy.

Decentralized and Secure Storage

Traditionally, websites rely on a two-step process. First, you buy a domain name. Then, you pay a hosting provider to store your website’s content on their servers. This centralized system is vulnerable to censorship. The Internet Corporation for Assigned Names and Numbers (ICANN) can blacklist your domain, and your hosting provider could shut down your website.

Again, Web3 eliminates this risk. Web3 domains offer a powerful alternative with decentralized storage solutions like InterPlanetary File System (IPFS). IPFS acts as a peer-to-peer network where files are distributed and stored across various devices worldwide. This eliminates a central point of control.

However, IPFS and Web3 technology are still under development as browser support is limited. Only a few browsers, like Brave and Opera, currently offer native integration.

Simplified Wallet Addresses

This functionality is crucial if you own cryptocurrencies and want to use them for payments or DeFi (Decentralized Finance). Web3 interactions require a crypto wallet to store your crypto and NFTs.

However, this makes transactions prone to errors because wallet addresses, which are necessary for receiving and transferring tokens, are made up of long and complicated alphanumeric strings (like “1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa”). Hence, the reason wallet addresses must be copied and pasted carefully each time. 

All of these can be avoided with the advantageous features of a Web3 domain because long and complicated wallet addresses are easily replaced by readable names such as “charlie.crypto” or “ellie.eth”.

Self-Sovereign Identity (SSI)

Self-sovereign identity (SSI) gives you the power to control your online information and actions. Web3 domains follow this principle, which is one of the key reasons for their popularity and development.

Web3 domain providers, along with other blockchain identity projects, are exploring ways to unify your identity across different platforms. This could involve single sign-on (SSO) solutions, allowing you to use your Web3 domain as a universal login for Web2 and Web3 apps—all with the same digital identity.

Imagine your Web3 domain being more than just an address. Instead, it could become your online username for different services on different platforms—lending protocols, DEXes, metaverse, play-to-earn video games, or social networks.

Web3 Domains vs Traditional DNS Domains: Make Your Choice

Web3 domains represent a unique approach to domain ownership, built on principles of decentralization, security, and user empowerment. While traditional DNS remains relevant to the current web, Web3 domains offer a glimpse into the future, with the potential to transform how we interact and navigate the online world.

Choosing between a traditional domain and a Web3 domain depends entirely on your needs and priorities. Traditional domains offer familiarity and widespread compatibility. However, they lack the security and control features of Web3 domains. Web3 domains, however, have the potential to become a more prominent player in the domain ownership landscape.

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How does it work?

Accordingly to the day when you will finalise your purchase, you have the right to receive from 1 to 3 NFT Domains for FREE!

Once you have completed your order, within 48h you will automatically receive on www.freename.io platform, in your personal area “portfolio” the randomly assigned NFT Domain/s.

You can chose on which blockchain you want to mint on and minting fee is covered by Freename!


Once you have added your favorite items to the cart, you proceed to “checkout” and add your coupon to the “coupon box”.

Said coupon will instantly do its magic and your due total will drop!


How does it work?

Once you have completed your order, you will automatically receive on www.freename.io platform, in your personal area “portfolio” the randomly assigned NFT Domain value $50 or if you’re lucky a randomly assigned TLD with value $699 (between these: .immersive; .multiverse; .freelancer; .cashback; .hologram)

you can chose on which blockchain you want to mint your NFT Domain/TLD on and minting fee is covered by Freename!


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Why do i Need a Wallet?

Freename domains are blockchain-based assets and would be minted and stored using a wallet. Users are required to mint and manage their domains using a Metamask or Coinbase-configured wallet. It must be a non-custodial wallet, meaning that one must own the private keys to the wallet in order to approve transactions via a signature.

To benefit from Freename Web 3 domains/TLDs, you must have a wallet. This is because Web 3 domains/TLDs are blockchain-based assets. Users can mint and manage their domains using Metamask or Coinbase-configured wallets.

Keep in mind that it must be a non-custodial wallet. You own the private keys to the wallet (in order to approve transactions via a signature).

Are the Domains Associated with ICANN?

ICANN does not manage freename.io domains. Freename.io believes their TLDs/domains must allow customers to operate independently. Freename.io wants to build a utility infrastructure, allowing customers to use their services for valuable and generative purposes. By leveraging blockchain technology, Freename Web 3 domains/TLDs have no centralized authority imposing rules and regulations.

What is a Wallet?

Every blockchain user requires a wallet in order to interact with the network. A wallet is essentially an account on the blockchain where transactions can be sent and received. It is also where one can store blockchain assets such as cryptocurrency or NFTs (non-fungible tokens). There is no personal information associated with a wallet and none is required to create one. A wallet consists of a public key and a private key. The public key can be safely shared with anyone who wishes to send assets to the corresponding wallet, however, the private key should not be shared and is the key to accessing the wallet in the event where access is lost or to create another instance.

A crypto wallet (cryptocurrency wallet) is software or hardware that enables users to store and use cryptocurrency. With cryptocurrencies, there isn’t any actual money to carry around in a wallet. They exist on the blockchain. Similarly to traditional bank transfers, crypto wallets enable users to send and receive cryptocurrencies, NFTs, etc.

A wallet consists of a public key and a private key. To receive assets, you share your public key associated with your wallet. You should NEVER share your private key.

How do i Claim my Earnings from Freename

ou can withdraw revenues generated passively through a cryptocurrency transfer. Connect your cryptocurrency wallet and, once your withdrawal request is confirmed, the desired amount is pulled from Freename’s reserves and conveniently delivered to you!

Claim your earnings by following these steps:

  1. Connect your cryptocurrency wallet to Freename.io
  2. Request a withdrawal
  3. Receive request confirmation
  4. Receive withdrawal directly to your wallet.

Can i Transfer Domains?

Yes. The domain is stored in your cryptocurrency wallet and can be transferred by you after you have minted it. Access your portfolio, select the TLD or Domain you wish to transfer and type the recipient’s address. Afterwards, you must paste the OTP code you received by mail to confirm the transaction. Keep in mind that currently, it is not possible to import the domain that has been transferred, but it will be possible soon!

Yes. Domains are transferable ONLY after a TLD/domain has been minted and stored in a user’s wallet.

To transfer the TLD (or domain), the user must:

  • Access their wallet
  • Select the item they want to transfer
  • Enter the recipient’s address.
  • Confirm the transaction by pasting the OTP received by email

In the future, Freename.io will support importing domains that have been transferred.

What about Trademarks?

Registering a trademark on your Freename Web3 TLD will allow you to protect your web3 TLD and your logo worldwide juridically.

From the moment you deposit a trademark request, your web3 TLD will be protected worldwide for 6 months awaiting for the Swiss Federal Institute of Intellectual Property (IGE.ch) to confirm and register the availability of your TLD.****

A trademark is any symbol, phrase, or word that allows customers to identify a company’s goods or services. Freename is a web3 domain/TLD provider that also provides trademark registration.

A user must reach out to the trademark department to register a trademark. To get your trademark filed for review at the Swiss Federal Institute of Intellectual Property, a user must provide the following:

  1. Complete a Know your customer (KYC)
  2. A list of TLDs they wish to trademark
  3. Proof of payment

Once these conditions are met, it takes one week for the trademark to be reviewed and logo/TLDs to be provided with six months of worldwide protection.

Is Minting the same as Buying?

Purchasing a TLD (or domain) on Freename and minting it on the blockchain are two distinct steps. When you purchase a TLD (or domain), the transaction is recorded in Freename’s database and not on the blockchain. Minting a TLD (or domain) on the blockchain requires a second step: log into the user’s personal area, select the TLD (or domain) and press “mint TLD” (or domain): done! Don’t worry, once you have purchased a Freename domain, no one can take it away from you!

No. Buying and Minting a TLD/domain are two different things.**

Buying **is the process of recording a transaction on Freename’s database and not on the blockchain.

Minting is the process of pushing a user’s domain from Freename.io data onto the public ledger of a blockchain and into a user’s wallet. Giving the user full control over the TLD/domain.

It is very easy to mint a domain/TLD once you purchase it. Simply:

  • Log into your personal area
  • Select the TLD (or domain)
  • Press “mint TLD” (or domain)

What is Domain Minting?

Minting is the process of publishing a Freename domain (or TLD) on the blockchain via your wallet to gain full custody of the domain. This means that the only person that has control over the domain (or TLD) is the person who controls (has access to) the wallet.

Minting is the process of pushing a user’s domain from Freename.io data onto the public ledger of a blockchain and into a user’s wallet. Giving the user full ownership over the domain.

Minting on Freename.io is as simple as the following steps:

  1. Go to the Freename.io website
  2. Enter the TLD/domain you want to buy in the search bar
  3. Add the TLD/domain to your cart
  4. Go to checkout
  5. Create a Freename.io account
  6. Purchase the TLD/domain with cryptocurrency or a credit card
  7. Go to “portfolio and incomes.”
  8. Click on mint TLD/domain

Which domains are Protected?

Protected domains and TLDs are domains and TLDs that we’ve detected are associated with a brand, organization, or notable person. We believe it is important to increase adoption for the next generation of the internet by helping to onboard brands into the Web3 era. If you are interested in applying for a Protected domain, please contact us.

TLDs/Domains associated with a notable person, brand or organization are considered Protected Domains. Protected domains help onboard brands in Web 3 increasing adoption. Protected domains also protect users from others impersonating/stealing their domains.

Reach out to Freename.io to apply for a protected domain.

Why use Freename?

Freename domains are unique by their very nature: only with Freename you can register domains with unique TLDs for your digital identity while passively earning money!

Freename.io is not only the leading TLD and Domains platform in Web 3, but also lets users generate passive income!

Owning a Freename Web 3 TLD entitles users to receive passive income whenever a domain is bought on their TLD. Users can register and mint TLD/domains of their choice if available.

What is a Domain?

A domain name is a string of letters and/or numbers that points to the IP address of the corresponding website. Generally, it is easier to remember a name than a long string of numbers.

A domain name is an address that people type into a browser bar to find a website. It consists of a Top-Level Domain (TLD), everything that comes after the dot, and the Second-Level Domain (SLD), everything that comes before the dot.

For example, “Freename.io” is the domain name, “Freename” is the SLD and “io” is the TLD.

Which Chains are Supported?

Freename has a multi-chain approach. You can choose on which Blockchain to mint your Web3 Domains and TLDs ranging Among Polygon, Cronos, and Binance.

A user can mint a Freename.io domain/TLD on the following blockchains:

  • Polygon
  • Cronos
  • Binance

Freename plans to expand its multi-chain approach by adding blockchains upon which domains can be minted.

Are there Renewal Fees?

No! Once you’ve bought a Freename Domain or TLD, it’s yours forever, no renewal fees ever!

No. There are no renewal fees on Freename.io. Once a user has paid a one-time payment for a domain/TLD, they own it. Forever.

This is the significant advantage of Web 3 domain/TLD over traditional alternatives.

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