What are Decentralized Domains?

by | Sep 4, 2020 | Industry | 0 comments

As the internet continues to experience changes, traditional domains are becoming ineffective. While decentralized domains are still in their infancy stage, the internet community is already excited about them.

Just like digital currencies, decentralized domains represent a group of assets that belong to the owner, and not a third party or central entity. The owner has a private key to their domain; hence, the domain is entirely under their control.

A decentralized or blockchain domain is a set of smart contracts that make it operational. For instance, the Ethereum developers have developed the Ethereum Name Service (ENS), which enables people to register a domain name in the .eth zone.

The .eth domain zone is decentralized. It runs on top of the Ethereum network and can interoperate with other decentralized applications and resources, such as wallets, exchanges, and other storage systems.

Since such domains are not as widespread as traditional domains, most people have not heard of them. Nevertheless, they are quite common among the crypto community. Just imagine, the “exchange.eth” domain was sold for 6,660 Ethers.

With the above discussion, some questions arise: why are the benefits of blockchain domains? What challenges do they solve?

The benefits of decentralized domains

Blockchain domains are more convenient to use for transactions compared to traditional wallets. A conventional wallet address comprises of about 35 characters, which is naturally difficult to remember and quite easy to confuse. For someone who wants to transfer crypto funds, it will be easy to enter a wallet-based domain name and send coins to it directly.

The second benefit is related to content. Decentralized domains cannot be blocked or censored. With traditional domains, the registrar can revoke your domain name as per court procedures (or even without a court verdict).

On the other hand, it is impossible to revoke a blockchain domain. The domain remains your possession. You solely control it and enjoy complete ownership over it.

For example, the developers behind Unstoppable Domains are designing a unique blockchain for domain names. They plan to launch new domain zones and introduce blockchain into the existing ones. New domains will run outside the ICANN system; therefore, users will require additional software to use them.

The firm is also creating the Zilliqa Domain System (ZDS). The .zil domain team intends to replace complicated addresses and domains with human-readable names. Besides, they plan to develop domains for sites that could be resistant to censorship.

Unstoppable Domains also plans to register a .crypto domain zone once ICANN launches new top-level domain zone registration. Crypto domains will be used to design crypto-based websites and facilitate the exchange of digital assets.


ICANN has been in operation for more than two decades, facilitating the creation of new business models and business roles. With the revolutionary decentralized-based alternatives to DNS, these roles are not clearly defined. Currently, we are on the edge of new blockchain capacities.

Decentralized domains will solve several existing issues: from content management to private domain ownership. However, blockchain domains are still in their early stages, and developers need more time to create more applications.

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