NFT domain names

Buy NFT domain names in Internet extensions such as .ETH or .CRYPTO from SOLIDNAMES.

An NFT (Non-Fungible Token) domain name is used in web3. An NFT is a pointer to a digital resource.

In this respect, an issuer creates an NFT that can be transferred to a third party. He then points it to a digital or sometimes physical resource. In the “blockchain”, the issuer declares that such and such an entity is the “owner” of the digital resource to which this NFT points.

In an article on this subject, Afnic compares the NFT to a certificate of ownership: ” If you hold a certificate saying ‘So-and-so owns such-and-such a star’, then people who trust the NFT issuer, and the NFT system in general, will recognize you as the owner “.

NFT domain names, blockchain domains

Blockchain is a technical mechanism that enables people who don’t know each other to agree on a state.

There are several blockchains, such as Ethereum (ETH), Polygon and USDC.

When it comes to cryptocurrencies, Bitcoin is the best-known blockchain. The blockchain is a distributed database containing all Bitcoin transactions. They are grouped together in cryptographically secure blocks.

Afnic specifies that ” the important thing about these chains is the absence of a central authority: anyone can participate and check. Anyone can write information into the chain, and no one can remove it arbitrarily. Addresses are associated with a two-part cryptographic key: the private part is used to authenticate operations on this address. “.

For the .FR domain name registry, ” secure management of this private part of the key is crucial “. Many blockchain users go through an intermediary to manage the keys for them.

Web 3 domain names: the leading Ethereum Naming Service (ENS)

ENS, or “Ethereum Naming Service”, is often referred to as the equivalent of DNS for the blockchain, and for Web3.

As a reminder, DNS (Domain Name System) are used to associate IP addresses (a sequence of numbers) with human-readable domain names.

Technically, the domain name points to a useful resource such as an IP address.

In practice, ENS proceeds in a similar way at the level of Web3 (a decentralized version of the Internet based on a peer-to-peer network). ENS uses the Ethereum blockchain.

ETH domain names

ETH 2023 domain names

When you hold a crypto wallet, you have an address made up of long strings of numbers and letters. As such, it’s hard to remember. To solve this problem, ENS translates these complex addresses into readable domain names. These are then registered on the Ethereum blockchain.

In concrete terms, if you want to pay someone you no longer have to enter their complex address, but only their ENS domain name, such as <solidnames.eth>.

In which extensions are NFT domain names registered?

NFT domain names are not registered in the normal Internet extensions managed by ICANN. To date, there is no regulatory authority for these Web3 extensions. DNS is centralized, while NFT extensions are decentralized. .

Among the NFT domains, there are two leading entities.

ENS markets .ETH domain names. The company presents itself as a provider of ” decentralized domain names for digital portfolios, websites and more “.

In 2024, ENS is the world’s most widely used blockchain-based naming system. It has over 2 million .ETH domain names held by 885,000 different registrants.

The other structure is Unstoppable Domains. It has several extensions in its catalog. ENS uses the Polygon blockchain.

Unstoppable Domains

.BITCOIN, .CRYPTO, .NFT domain names

Unstoppable Domains markets domain names in .888, .BITCOIN, .BLOCKCHAIN, .CRYPTO, .DAO, .NFT, .WALLET, .X or .ZIL. The registry regularly adds Web3 extensions to its catalog, such as the arrival of .POLYGON domain names or .XMR for the cryptocurrency Monero.

By December 2023, the company claims over 3.8 million domain names registered in its Web3 extensions.

Like .ETH domain names, they are particularly useful for designating your cryptocurrency wallet, your “username” on the Web3 or your classic URL address.

.CRYPTO currently has the most domain names registered among the extensions offered by Unstoppable Domains.

How much does an NFT domain name cost?

The price of an NFT domain name consists of :

  • Purchase price from supplier (e.g. ENS, Unstoppable Domains);
  • Gas fees (the equivalent of transaction fees for .ETH only);
  • Any costs incurred by an agent such as SOLIDNAMES, to whom the purchase of the domain name is entrusted.

The pricing policy for Web3 extensions varies according to the registry equivalent.

Rates for ENS and Unstoppable Domains

ENS offers an annual fee of the equivalent of 5 US dollars (USD) per year for domain names longer than five characters. Shorter domain names are more expensive. For example, a four-character .ETH domain name costs $160 per year. The price of a three-character .ETH domain rises to $640 per year.

Unstoppable Domains offers first prices at ten dollars (e.g. .BLOCKCHAIN). However, the majority of extensions are priced at $20 (e.g. .888, .DAO, .NFT, .WALLET, .ZIL). Other Unstoppable Domains are priced at $40, such as .BITCOIN or .CRYPTO. Finally, .X is $100.

Unlike ENS, Unstoppable Domains domain names are not subject to annual renewal.

Unstoppable Domains also has a policy of premium domain names, particularly for short addresses.

In addition, a blockchain domain corresponding to a protected trademark can also be sold for more than the standard price.

Gas fees

In the blockchain, miners are paid to validate transactions. The miner who solves a complex mathematical process the fastest is rewarded. The users responsible for the transaction then pay him or her a gas fee, i.e. a transaction fee.

These transaction fees can be very high, but they change over time. In spring 2022, they reached $200 per transaction. In October 2022, these “gas fees” are around twenty dollars.

When gas costs drop, new registrations logically tend to increase. Most Solidnames customers buy .ETH domain names over several years. This saves them gas fees and Solidnames fees. They benefit from Ethereum’s relatively low exchange rate against the euro.

How can I buy NFT domain names?

Solidnames can reserve domain names in NFT extensions such as .ETH, particularly for defensive purposes.

After a search for availability among NFT domain names, Solidnames can register free names or buy back NFT names already taken.

As these reservations are settled in Ethereum crypto-currency, the price in euros can fluctuate significantly.

The cost of registering an NFT domain name with Solidnames includes :

  • Solidnames fee to register on behalf of Solidnames as a proxy: €96 excluding VAT
  • Disbursements corresponding to the acquisition price, including: exchange fees, ENS or Unstoppable Domains registration fees, blockchain transaction fees (“gas fees”). For information, the solidnames.eth registration cost €97 in disbursements in spring 2022.

Solidnames provides an updated estimate of the filing fees for each new application issued to its services.

The domain name is purchased via the Solidnames wallet, credited in cryptocurrency.

In the event of changes to the NFT domain name, additional charges will apply.

These modifications may involve editing the domain’s fields or hosting a static site linked to the domain.

Solidnames charges a fee of €48 (excl. VAT) per modification, plus disbursements such as gas fees.

How do I use NFT domain names?

NFT domain names are not recognized by normal DNS resolvers. To use these Web3 domain names, you need to carry out a number of computer manipulations.

Nevertheless, the main use of this type of address is to name resources on the blockchain.

That said, here are a few technical facts about NFT domains. NFT domains are totally different from classic domain names and the web; they’re called web3.

The most widespread uses include

  • name the wallet with an NFT domain name instead of an address that would normally be impossible to remember. For example, if a customer wants to send Ether to Solidnames, the wallet address is <solidnames.eth>.
  • associate a static website3 that can be consulted under certain technical conditions. It is natively available in Brave and Opera browsers. There are also Web 2.0 gateways to Web3. For example, the Solidnames Web3 site can be consulted via this gateway: https: //solidnames.eth.limo. The extension used is an nTLD recognized by ICANN. .LIMO or .LINK make the transition from an .ETH domain name to classic web.

Among the uses not available for this type of Web3 domain name, it is not currently possible to :

  • have an e-mail address user@domaine.eth
  • to reference a website3 in Google
  • to host a Web3 e-commerce site

Current use remains fairly limited.

For trademarks, registrations among the “NFT domains” are more of a defensive measure, to avoid the equivalent of cybersquatting in Web3.

Renewing .ETH domain names

ENS allows .ETH domain names to be registered for a minimum of one year, with no maximum term. If the domain name is purchased in .ETH for one year, it must be renewed in order to be retained. Under these conditions, a backorder is possible to recover an NFT domain name in .ETH.

Currently, domain names registered in Unstoppable Domains, such as .BITCOIN, .CRYPTO or .NFT, are registered without any renewal fees.

ETH domain name holders pay for the renewal of their names, as well as gas fees. These “gas fees” are often the main cost of renewing a domain name.

If the .ETH domain name is not renewed before its expiration date, ENS provides a grace period of 90 days. During this period, the owner cannot modify any registrations linked to the name. However, they can always re-register it as a priority. After the grace period, the name is released for any new registration by a new person. The price is higher for 21 days and decreases over this period. The published name continues to resolve to .ETH until the new owner overwrites it.

What are the differences between a classic domain name and an .ETH domain name?

Both systems have the same purpose: to point to a content address.

However, a classic domain name makes non-exclusive digital content visible to Internet users. For almost 40 years, domain names have been known and understood by the majority of people.

The NFT points to a resource, generally unique, which identifies the owner of the digital value of the content.

The technology used differs. Domain names in traditional extensions use the DNS protocol organized by ICANN. NFTs, on the other hand, use peer-to-peer (P2P) blockchain technology.

Unlike DNS, ENS operates on a decentralized architecture.

ETH domain names allow you to register addresses composed of emojis. This is not the case for domain names registered under traditional extensions.

While ENS and DNS operate in different technological environments, there are other similarities;

In particular, it is also possible to redeem an NFT domain name in the same way as a .COM domain name. In the event of cybersquatting of an .ETH domain name, a “Legal Notice NFT” letter of formal notice can be sent.

In an article on this subject, Numerama points out that ENS sells domain names in the form of NFTs. As such, ERC-721 tokens, which are a special type of token used on the Ethereum blockchain, serve as certificates of ownership. Numera points out that ” the fact that they are sold in the form of NFTs means that domain names are offered for sale on platforms such as OpenSea “.

Once an NFT domain name has been purchased, it can be transferred to another user or another wallet, just like a classic non-fungible token.

In addition to buying NFT domains, Solidnames also monitors the trademarks among these “NFT domains“.

SOLIDNAMES webinar on NFT domain names

To find out more about NFT domain names, we invite you to watch the replay of our webinar on the subject. If you like the video, please share it.