To Rob Kleiner commercial success director Comlaude
Despite the economic uncertainty, interest in the commercial opportunities presented by Web3 has proven constant. Earlier this year, Unstoppable Domains achieved unicorn status after raising $64 million in its Series A round. Since then, the company has registered over 2.5 million blockchain domains, indicating many want to secure their place in the next iteration of the commercial internet.
However, some people are concerned. The “next big threat” is how Microsoft’s annual Digital Defense Report labeled blockchain domains. But are they really that bad?
To answer that question, let’s first understand what a blockchain domain is, review its growing popularity, and consider some best practices that apply to all domain name portfolios, regardless of size or sector. is needed.
The rise of blockchain domains
Blockchain domains are the basic building blocks of Web3 and serve several purposes. This includes identifying owned and hosted assets in the Metaverse virtual world and making cryptocurrency wallets more accessible.
Taking crypto wallets as an example, a blockchain domain provides a human-readable name for a wallet, much like domain names were invented because long strings of IP numbers are hard to remember. Want proof? Which of the following addresses is easier to remember?
0x78743110A1B17c86cH43g09853c0vb2836c205 or Comlaude.eth.
As for the broader benefits, blockchain domains are decentralized, which makes them transparent, seemingly free from corruption, secure, and free from the control of central authorities.
However, the lack of regulatory oversight means that it is difficult to shut down blockchain domains or even trace their owners. This is a problem brands may face with the new generation of cybersquatters.
A battlefield you can’t win?
In the world of .com and .uk DNS there is a harmonious set of technical standards. This means that traditional DNS domains work seamlessly across different browsers. However, due to the large number of competing blockchains in Web3, there is no unified architecture and each blockchain operates independently of the others.
In theory, all permissionless blockchains can support blockchain domains. However, his three major blockchain domain providers, Ethereum, Handshake, and Unstoppable Domains, have a combined 7 million registrations. For example, an Ethereum Blockchain developer created the Ethereum Naming Service (ENS) to allow .eth names to be registered on the Ethereum Blockchain, and .hns names to be registered on her Handshake blockchain.
Due to the lack of regulation and the anonymity they provide, blockchain domains are ripe for exploitation by cybercriminals. Blockchain domains, for example, are ideal for tax evasion and transfer of criminal proceeds.
Negotiations with blockchain domain owners
Thousands of brand names have already been secured by speculators in the blockchain world. However, the lack of a formal recovery process currently leads many to ask: How do you negotiate when the owner of a blockchain domain is anonymous? , the answer is not a simple one, but there are steps you can take. Many major brands run the risk of being burned by this issue. For example, in 1998 Microsoft had to pay him over $1 million after two cyber squatters defeated him by registering microsoftwindows.com and microsoftoffice.com .
High-profile cases like this, combined with the lack of support from ICANN for Web3, have understandably left brands with less confidence to explore this area and its opportunities. However, this does not mean that brand owners should give up. Instead, brand owners should strive to take a more proactive approach.
With many brand names already taken by speculators, pragmatism and agility are essential. The obvious first step is to ensure that you have registered your domain early on the decentralized web. In doing so, it will not only future-proof your business for the next phase of the Internet. However, registration is relatively affordable and provides a cost-effective hedge in case Web3 fails to live up to the expected hype.
Work with a Domain Name Specialist
The issue of blockchain domains will only grow in importance as adoption increases, so businesses and brands can get ready sooner or later. to lay the foundation to ensure brand and IP protection. Looking back to the early 90’s, we can see how far these domains could and will continue to evolve.
Effective brand protection in Web3 is a collaborative process from the perspective of both internal resources and external experts. An outside expert can prevent third parties from profiting from your hard work through smart, no-nonsense dialogue or simple commercial negotiations with registrants. .
Working with a domain name specialist to develop a registration and enforcement strategy ensures you have a trusted partner with experience in navigating a complex and ever-evolving world.
