What are blockchain domains and how do they work?

Blockchain domains represent a new generation of internet addresses that redefine traditional domain ownership and management. Unlike conventional domains, which are registered and controlled through centralized registrars, blockchain domains exist on decentralized networks and belong solely to their owners. They cannot be taken away, blocked, or disabled without access to the private key. Let’s dive deeper into what blockchain domains are, how they function, and why you might want to consider them.

So what are blockchain domains?

Blockchain domains are domain names stored not in standard centralized registries (like .com, .uk, .de, .hu etc.) but on the blockchain. This means that data related to domain ownership, records, and management rights is recorded in a decentralized system, independent of ICANN or traditional registrars.

These domains typically feature non-standard extensions such as .eth, .crypto, .nft, .zil and others. They are not governed by ICANN, the international organization that regulates the traditional domain name system, and cannot be revoked or frozen by external entities. Only the owner of the private key has access to domain management.

Essentially, a blockchain domain is an NFT token linked to a unique name – like example.eth – and stored in your crypto wallet. It is usually an ERC-721 or ERC-1155 token (on Ethereum or Polygon), allowing you to:

• sell it like any other NFT;
• transfer it to another user;
• or assign crypto wallet addresses, an IPFS website, or other information to it

This makes blockchain domains particularly appealing in the Web3 era. They offer full control, privacy, and “censorship” resistance. In 2023, the Web3 domain market was valued at $10.43 billion, with a projected annual growth rate of 34% through 2030. As of early 2025, the total number of registered blockchain domains has surpassed 10 million.

How do blockchain domains work?

1. User → Wallet

The user interacts with a Web3 app or website and sends a request to yourname.eth. This domain must be linked to a wallet (e.g., MetaMask) where the NFT domain is stored.

2. Query for an ENS domain name

The request for “yourname.eth” is sent to the NFT domain, which is essentially an NFT token. It is tied to the user’s address on the Ethereum network and identified by the name “yourname.eth.”

3. NFT domain → ENS smart contract

The NFT domain is associated with the ENS smart contract—a specialized contract on the Ethereum blockchain that manages all ENS domains. It stores:

• links between domains and wallets;
• domain metadata;
• user-specified records.

4. ENS smart contract → Return records

The smart contract returns data related to the domain, including:

• wallet addresses (e.g., Ethereum, Bitcoin);
• IPFS links (if there’s a site hosted on IPFS);
• text records (email, links, descriptions, etc.)

This data serves as the equivalent of DNS records in a centralized system.

How are blockchain domains different from regular domains?

	Regular domains (.com, .uk)	Blockchain domains (.eth, .crypto)
Where are they stored?	On registrar servers	On the blockchain (Ethereum, Polygon)
Control	ICANN and the registrar	The private key holder only
Can it be revoked?	Yes (e.g., by court order)	No (as long as the private key is retained)
Payment	Recurring annual fees	Usually a one-time purchase (except for ENS, which requires renewal)
Browser support	Supported by all major browsers	Only supported with extensions (e.g., Unstoppable Domains) or in Brave browser.Can also be viewed via gateways, for example: https://yourname.crypto.ipns.dweb.link

Use cases of blockchain domains

Blockchain domains unlock new possibilities that extend far beyond the traditional internet. Here are some of the most popular ways to utilize them:

1. Simple crypto payments. One of the most common scenarios is using a domain instead of lengthy crypto addresses. For instance, sending funds to satoshi.eth is much easier and safer than copying and pasting a 42-character wallet address. This convenience is especially beneficial for freelancers, donations, online trading, and charities.

2. Decentralized websites. By leveraging technologies like IPFS (InterPlanetary File System), you can create a website that isn’t hosted on a conventional server and is immune to censorship. A blockchain domain can be linked to such a site and published on the network – ensuring that no one can delete or block it.

3. Digital identity in Web3. Blockchain domains are increasingly being used as logins for decentralized applications (dApps) and metaverses. For example, yourname.eth can serve as your universal nickname, profile, business card, or even an avatar that displays information about you, your portfolio, NFTs, and other digital assets.

4. Brand and name uniqueness protection. Similar to traditional domain zones, blockchain domains allow you to secure a personal or brand name. The sooner you claim the right name (e.g., brandname.crypto), the better your chances of protecting your reputation in the Web3 landscape.

5. Trading and collecting. Since blockchain domains are NFTs, they can be traded on marketplaces like OpenSea. Some rare and short names are already valued at thousands of dollars, and the market continues to expand.

Blockchain domains in real life

Here are some notable examples of blockchain domains in action:

• brantly.eth. This is the profile page of one of the developers of the Ethereum Name Service. It can be viewed in a browser that supports ENS domains or through app.ens.domains;
• vitalik.eth. This is the personal ENS domain of Vitalik Buterin, the creator of Ethereum. While the site itself isn’t directly linked, the name is used in various Web3 applications to identify and display data;
• unstoppable.crypto. This is the official site of Unstoppable Domains, showcasing the capabilities of .crypto domains;
• myetherwallet.crypto. This serves as an alternative way to access MyEtherWallet through a blockchain domain.

To view sites on .eth, .crypto, and other blockchain domains directly, you will need:

• a browser with Web3 support (e.g., Brave Browser – people swear by it, so do check it out), or
• an extension like Unstoppable Domains for Chrome or for Firefox, or
• special gateways, such as gateway.ipfs.io, for IPFS-hosted sites.

Blockchain domains pros and cons

Pros:

• User control. Users control their domains through their crypto wallets, eliminating the need for intermediaries, registrars, or management organizations.
• Immunity to interference. Blocking or deleting a blockchain domain without access to the private key is impossible – government agencies or providers cannot interfere.
• Versatile use cases. Blockchain domains can be used to receive cryptocurrencies, create websites, and manage digital identities in the Web3 space.
• One-time purchase. In many systems (e.g., Unstoppable Domains), a domain is purchased once and remains yours forever, without recurring annual fees.

Cons:

• Browser compatibility. Not all browsers recognize blockchain domains by default. Special extensions or manual configurations may be required.
• Risk of loss. Losing access to a crypto wallet or private key makes it impossible to recover the domain. There is no support service available to help restore access.
  
• Complexity for beginners. Understanding blockchain, NFTs, and smart contracts – essential for domain management – can be challenging for newcomers.
• Lack of regulation. Currently, blockchain domains are not regulated by universally accepted standards like ICANN, which creates legal risks in disputes over name ownership.

FAQ

1. What do I need to buy a blockchain domain?

You’ll need a crypto wallet (such as MetaMask) and some cryptocurrency (usually ETH or USDC) to pay for the domain and cover network (gas) fees.

2. What happens if I lose access to my wallet?

You’ll permanently lose access to your domain. And that is a recipe for a ghost. That’s why it’s critical to back up your seed phrase and consider using a hardware wallet for long-term storage.

3. Can I connect a blockchain domain to a regular website?

Yes, you can point the domain to an IPFS link or redirect users to a traditional website using proxy gateways or integration services.

4. What browser extensions do I need to view .eth or .crypto domains?

For Chrome and Firefox, use the Unstoppable Domains browser extension. In the Brave browser, blockchain domains work natively without additional setup.

5. How is ENS different from Unstoppable Domains?

ENS operates on Ethereum, requires periodic renewals, and uses the NFT standard. Unstoppable Domains supports multiple domain extensions and offers one-time purchases but is generally considered less decentralized.

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Blockchain domains are an exciting new frontier, but let’s get real here: they can be weird and unpredictable. 

For the average user, navigating the complexities of crypto wallets, gas fees, and browser compatibility can quickly become a real headache. And the semi-clandestine nature of Web3 can (and will) scare off potential customers, making it harder for businesses to connect with their audience.

But for domain owners, this is where the opportunity lies. While blockchain domains may not be user-friendly for everyone, they can offer unique advantages for those who understand the space. 

However, if you’re looking to reach a broader audience without the hassle, a traditional domain is the only way to go. Services like SpaceLama make it super easy to secure a domain that’s simple, reliable, and accessible.In the end, while blockchain domains have their allure, they’re not the best fit for everyone. If you want to build a strong online presence without scaring off customers, stick with a traditional domain. It’s the smart choice for most people today!