The internet as we know it is built on centralized systems. Traditional domain names—like example.com—are managed by centralized authorities such as ICANN (Internet Corporation for Assigned Names and Numbers). These bodies can seize or censor domains, and users depend on third parties to maintain access to digital identities and websites.
Decentralized domain name systems challenge this model. Solutions like the Ethereum Name Service (ENS) and Unstoppable Domains put domain ownership on the blockchain, giving users full control, censorship resistance, and seamless integration with Web3 applications.
Step-by-Step Breakdown of Decentralized Domain Names
1. What Are Decentralized Domains?
Decentralized domain names are domain systems built on blockchain networks. These systems:
- Register domain names as NFTs (non-fungible tokens).
- Give full ownership of the domain to the holder’s wallet.
- Are not controlled by any central authority or company.
- Are typically integrated into Web3 wallets, dApps, and crypto platforms.
Instead of .com or .org, decentralized domains use TLDs like .eth, .crypto, .zil, or .nft.
2. Why Do We Need Decentralized Domains?
Let’s look at the problems with traditional domains:
- Censorship and Seizure: Governments or corporations can remove or seize domains.
- High Renewal Costs: Domains must be renewed regularly with fees.
- No Ownership Guarantee: You lease a domain through a registrar—you don’t truly own it.
- No Web3 Compatibility: Traditional DNS does not integrate natively with blockchain apps or wallets.
Decentralized domains solve these issues by offering:
- True ownership via NFTs stored in your wallet.
- Censorship resistance—only you can update or transfer the domain.
- Permanent identity across wallets, dApps, and platforms.
- Multi-use functionality—beyond websites, domains can link to wallets, content, or smart contracts.
3. Ethereum Name Service (ENS)
What is ENS?
The Ethereum Name Service (ENS) is a decentralized naming system built on the Ethereum blockchain. It maps long Ethereum wallet addresses like:
0x8e…73F0
to human-readable names like:
yourname.eth
This makes it easier to send crypto or interact with dApps.
How ENS Works:
- Domains are registered on-chain as NFTs.
- You pay a registration fee (usually in ETH) to own the domain.
- Domains can be sub-divided (e.g.,
subdomain.yourname.eth). - You can assign addresses, content hashes (for IPFS), avatars, and more.
Features:
- Domain ownership stored in a smart contract.
- Can store various crypto addresses (BTC, ETH, SOL, etc.).
- Integrates with dApps like Uniswap, OpenSea, and Metamask.
- Supports IPFS for decentralized website hosting.
Example Use Case:
- Your friend sends ETH to
alice.ethinstead of a long hex address. - You host a dApp on
dapp.alice.ethusing IPFS. - You build reputation and brand identity around your ENS name.
4. Unstoppable Domains
What is Unstoppable Domains?
Unstoppable Domains is a blockchain-based domain registrar that offers domain ownership as NFTs across multiple blockchains like Ethereum, Polygon, and Zilliqa.
Unlike ENS, which usually requires renewal, Unstoppable Domains offers one-time purchases with no renewal fees.
Key Features:
- Supports TLDs like
.crypto,.wallet,.nft,.x,.dao, and.blockchain. - Domains are minted as NFTs and stored in your wallet.
- Can be used to receive 300+ crypto assets across different chains.
- Lets you create decentralized websites via IPFS.
How It Works:
- Search for a domain on the Unstoppable Domains website.
- Buy the domain using crypto or fiat.
- The domain is minted as an NFT on your chosen blockchain.
- Link your domain to crypto addresses, websites, avatars, and social media.
Example Use Case:
- You register
mybrand.crypto. - You point it to your Bitcoin, Ethereum, and Solana wallet addresses.
- You launch your company’s site hosted on IPFS and linked via your domain.
5. Key Differences Between ENS and Unstoppable Domains
| Feature | ENS | Unstoppable Domains |
|---|---|---|
| Blockchain | Ethereum | Ethereum, Polygon, Zilliqa |
| TLDs | .eth | .crypto, .nft, .x, etc. |
| Ownership | NFT-based, with renewal | NFT-based, one-time purchase |
| Renewals | Yes (annually) | No renewals |
| Integration | Strong in Ethereum ecosystem | Broad cross-chain compatibility |
| Governance | DAO (ENS Token holders vote) | Company-managed |
| Subdomains | Yes | Limited |
6. How to Use a Decentralized Domain
Step 1: Get a Web3 Wallet
Install a wallet like Metamask or Trust Wallet to manage your crypto and NFTs.
Step 2: Register a Domain
- For ENS: Use app.ens.domains.
- For Unstoppable Domains: Use unstoppabledomains.com.
Step 3: Mint the Domain
- Pay gas fees for ENS (on Ethereum).
- Use gasless minting for Unstoppable Domains (on Polygon).
Step 4: Assign Records
- Link wallet addresses (ETH, BTC, SOL, etc.).
- Add an IPFS hash to point to a website.
- Attach social links, avatars, and more metadata.
Step 5: Use It!
- Receive crypto using your domain.
- Build decentralized websites.
- Use your name across dApps and blockchain services.
7. Use Cases of Decentralized Domains
- Crypto Transactions: Replace complex wallet addresses.
- Web3 Identity: One name for your on-chain identity, NFTs, DAOs, and dApps.
- Decentralized Websites: Host uncensorable content using IPFS and a domain.
- Branding: Create digital assets tied to your personal or business identity.
- Cross-Chain Interactions: Link multiple blockchain addresses under one domain.
8. Challenges and Limitations
- Browser Compatibility: Not all browsers natively support
.ethor.cryptodomains.- Solutions: Use browser extensions like MetaMask or Brave.
- Regulatory Risks: Domain ownership without censorship may face legal scrutiny.
- Name Squatting: Popular names are often snapped up early for resale.
- Interoperability: Not all Web3 platforms support all domain systems.
9. Future of Decentralized Domains
- Integration with Browsers: Expect native support for blockchain domains.
- Decentralized Identity (DID): Domains may evolve into full Web3 passports.
- DAO-Driven Governance: Community-led upgrades and policies.
- Mainstream Use: As adoption grows, crypto users may rely entirely on blockchain-based identities.