The internet is undergoing a transformation reminiscent of the 90s. Just as domain names, servers, and search engines became accessible to everyone at a low cost back then, Web3 technologies like blockchain are poised to elevate this accessibility to new heights. If you're considering investing in Web3 domains, you've likely encountered blockchain technology. This article explores 1Web's vital role in the world of Web3 domains.

Understanding Blockchain

To grasp the significance of 1Web's role, it's essential to understand how blockchain operates.

In simple terms, blockchain is a network of computers maintaining shared data records, akin to a digital ledger. Whenever new data is generated, it's simultaneously recorded across all servers in the network, forming a block. Any changes made to the data are reflected in all servers.

The key attributes of blockchain are its immutability and transparency. Once data is recorded in a blockchain, it cannot be altered; any changes are reflected in subsequent blocks. Additionally, the entire network can view the blocks and modifications made, enhancing transparency and reliability.

The Impact of Blockchain on Web3 Domains

Blockchain has the potential to revolutionize how domains function, aligning with the decentralized nature of Web3.

So, what does decentralization mean for domain names?

In Web2, domain names are typically owned by registrars. Individuals purchasing domains, known as domain registrants, don't truly own the domain but merely register or lease it. Ownership requires monthly or yearly payments, and upon expiration, the domain is reclaimed and offered for sale.

Blockchain disrupts this ownership paradigm. Web3 domains powered by blockchain are genuinely owned by the purchaser. Once acquired, ownership information is stored in the blockchain, ensuring the domain belongs to its owner until it's sold.

Blockchain also enhances transparency. As the blockchain network is accessible to all, anyone can verify domain information before investing. This transparency helps mitigate domain fraud and trademark disputes prevalent in Web2.

Moreover, blockchain introduces new revenue streams. Unlike Web2 domains serving merely as gateways to content, Web3 domains enable owners to explore innovative business models. For instance, platforms like Freename allow domain owners to earn passive income by hosting top-level domains. Owners receive commissions whenever someone purchases a domain under their TLDs.

Additionally, Web3 domain names can double as crypto wallets, facilitating transactions.

In summary, blockchain is pivotal to the functionality of Web3 domains. For those considering investments in Web3 domains, monitoring developments in the blockchain space is crucial. Each advancement presents an opportunity for capitalization.