NFT domains are a new and upcoming concept in the industry. As NFTs live on the blockchain, the idea is to own immutable, decentralized domain names for use without the worry of being taken down or having to use a centralized service to maintain domains.
Traditional “.com” and other familiar domains require a registrar to maintain a centralized database of owners.
Each domain is rented out and not purchased, so any missed renewals could result in the loss of a website or email address.
Let’s now explore this new use case for NFTs!
Want to Buy and Sell ENS Domains to earn money? List them on CYAN Marketplace.
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How Domains are Sold as NFTs
There are currently two safe ways to buy domains as NFTs. The first is Ethereum Name Services, or ENS for short. This is the most common method and most preferred for social media, for the clean endpoint of “.eth”. Many prominent social media influencers use an ENS to publicly display which assets they possess in their wallets.
When purchasing an ENS, you are renting the domains for a year at a time. You can select multiple years when purchasing to save on gas fees and hold onto the name for years into the future. This is a similar concept to traditional domains like “.com” and “.io”.
The major benefit to an ENS over traditional domains, however, is that your privacy is secure as your name, address, and phone number are not required. You can also sell, trade, or transfer the ENS to another wallet at any time as the domain is tied to an NFT. This is much easier when compared to the process of transferring a “.com”, which typically requires a broker in between and some technical knowledge.
The second way to buy domains is through Unstoppable Domains. These domains are very flexible as they can be used as actual website domains, though only available to users when using the Brave browser.
Nonetheless, an Unstoppable Domain can be used as a wallet address, website domain, login username, and other internet-related identification methods. Unstoppable Domains is working on a host of features to give more power to any domain owned.
A domain purchased here differs from ENS as you own the domain, as opposed to renting it. Thus, you only need to worry about the purchase and own it in perpetuity.
Cyan offers a method for users to purchase these unique domains through Buy Now, Pay Later so the total cost isn’t required upfront. The benefit of this is the ability to pick up multiple domains without handing over the full price from day one. You can use the domains during the loan period as well, so you aren’t limited to waiting until you’ve fully repaid them.
Who should buy NFT Domains?
NFT domains are a relatively easy way to get involved in NFTs as they can be had for as cheap as $5 equivalent in ETH. ENS is a great way to get familiarized with the concept, as the method for purchase is similar to the traditional domains like “.com”. Unstoppable Domains are also a great way to dip your toes into NFTs, as the domain you purchase can be used to rename your wallet, login to dapps like Cyan easily, and even set up your website to redirect to the domain.
Early collectors of domains are good candidates to purchase NFT domains as well. Build a portfolio of common names, speculate on companies that may enter the space, or simply collect names you like. Over time, it is expected certain domains may be desirable as NFT domains become a mainstream way of accessing an influencer, business, or wallet. Luckily a handy website exists to follow the prices of domains, available at ens.vision.
How to Select the Perfect Domain for You
One of the easiest ways to get started is to buy an NFT domain name of your name to connect to your wallet.
An ENS such as “vitalik.eth” is easy to identify and remember, thus making it easier for anyone looking to transfer your assets. It becomes much easier to transfer assets to yourself as you can just type “vitalik.eth” instead of copying a long address such as:
“0xD66FE0a25b5Ef9E916E1A035F00fE7601838182C”
You can pick up multiple domains with another number or suffix to keep yourself organized, like “vitalik-nfts.eth” or “vitalik1.eth”.
For collectors, you will most likely want to research prices before committing to purchase. Websites like ens.vision can help in assessing the value of domain names. Just like in traditional domains in “.com”, nouns, verbs, and four to five-letter words fetch a premium. Common names and places also are desirable given the speculation that mainstream internet users become more familiar with cryptocurrency and blockchain.
Do’s and Dont’s
Although this is a non-comprehensive list of do’s and dont’s that you should follow in a any NFT marketplace. Yet this will help you in a great respect, as a beginner.
Do’s
- Research what ENS and Unstoppable Domains are before buying
- Make sure the name you are buying is available. Sometimes the name you are looking for is already acquired and can be purchased from a secondary marketplace like Cyan
- Try to not overpay for names. Alternatives can sometimes be much cheaper for giving up some convenience in the name
- Purchase an ample amount of years for an ENS if you wish to keep it. Setup a payment reminder right after purchase so you don’t miss it
Don’ts
- Try to avoid services outside of ENS or Unstoppable Domains as your first purchase
- Go overboard and purchase too many domains without a considerable amount of research.
- Connect your ENS or Unstoppable Domain to a wallet unless you explicitly want your transactions available to the public. Once a wallet is tied, it is forever known to be associated.