Decentralized Domain Names Analysis
| by research goldshell November 28, 2022 | ANALYSIS |
Prologue
Today, the Internet has developed into a huge network covering the world, connecting billions of devices and carrying communication tasks that are important for production life. In order to enable two nodes that are far away and unfamiliar to each other to communicate credibly and reliably, DNS, the domain name resolution system, has taken an important role.
When a user uses an operating system and browser to access the Internet, the demand is sent to a resolution server, which provides the user with the IP address of the corresponding web page based on information provided by the cache or root server.
This network infrastructure is distributed but relies on a centralized resolution server to respond to access requests, and the relying server can then become a potential risk for hacking attacks and has given some organizations greater power to censor content.
For example, in June 2021, Fastly was crippled by a software malfunction that prevented users from connecting to sites such as The New York Times, Twitch, Reddit, etc. A decentralized system could effectively avoid a full-blown crash caused by such a single point of failure.
Compared to the traditional DNS system, the decentralized DNS no longer stores domain name information on a single point server, but rather stores information on millions of devices around the world. With information storage and the right consensus mechanism, trusting back-end servers to resolve access needs can be avoided.
From a security perspective, through blockchain technology, a decentralized DNS can also mitigate the level of damage of most attacks, guarantee the viability of domain addresses, and protect users from ‘phishing’ and scams.
With blockchain domain name schemes playing an increasingly important role in Web3, the number of corresponding decentralized domain name projects is also increasing.
This article will introduce decentralized domain names in two parts, including a macro analysis and the current development of decentralized domain names, a panoramic view of the rationale for the emergence and existence of decentralized domain names, and an analysis of the changes brought about by them, with a view to showing the current situation and future of this track.
1. Macro Analysis
1.1 History of decentralized domains
- In September 2010, the BitcoinTalk forum began discussing a hypothetical system called BitDNS, the successor to the decentralized domain name project Namecoin.
- In April 2011, Namecoin activated a merged mining upgrade that allowed simultaneous mining of Bitcoin and Namecoin.
- In June 2013, NameID was launched, allowing profile information to be associated with identities on the Namecoin blockchain, and the OpenID provider allowed logins to exist websites using Namecoin identities.
- In 2015, Namecoin’s development begins to stagnate due to the departure of the founder
- April 2016 – ENS pilot project phase. ENS founder Nick Johnson (former Google engineer) accepts Ethereum’s invitation to develop a decentralized domain name service for one of the projects on Ether
- In May 2017, the Ethereum domain name service ENS was launched on the main Ethereum network. In the initial stage of ENS, only 7-digit and above length .eth domain names were available for registration, and the registration was conducted in Vickrey auction mode.
- In early August 2018, Handshake founder and original Bitcoin Lightning Network protocol creator joseph-poon announced that he had raised $10.2 million from donors including a16z, Founders Fund and others
- In September 2018, the Handshake test network launched
- In July 2019, OpenNIC passes a vote and finally decides to drop the .bit domain
- In October 2019, Unstoppable domain launches a domain registration service, allowing users to register .crypto and .zil domains
- In November 2019, Vitalik, the founder of Ethereum, renamed his tweet to “vitalik.eth”, thus ENS became the focus of attention
- In March 2019, the Foundation for Inter-Wallet Interoperability (FIO) was founded
- In December 2019, FIO Foundation launches the FIO address and domain pre-sale, but the market impact is small
- February 3, 2020 – Handshake main net launched, followed by domain name auction on February 17, allowing users to register top-level domains through the HNS network
- December 15, 2020- Bitfida, a top-level infrastructure developer on Solana, closes a $4.5 million seed round of investment
- December 22, 2020 – Bitfida Launches “FIDA” Token
- May 16, 2021- FIDA allows users to map Twitter usernames to .sol domains
- July 2021 – DAS, a decentralized domain name protocol based on the Nervous Network, goes live, allowing users to register .bit domain names through the protocol
- On October 8, 2021, ENS announced that it has supported NFT avatars in profiles, which will also be displayed in the DApps app, further improving personal branding on the chain
- November 2021 – ENS transforms into a DAO, establishing a legal entity in the Cayman Islands and airdropping ENS tokens to eligible users and contributors
- March 29, 2022 – Space ID official website goes live
- July 5, 2022 – Space ID protocol announces .bnb domain test site
As of July 6, 2022, the total number of decentralized domain name registrations across the network exceeded 2 million, with more than 500,000 domain name holders. Among them, there are more than 550,000 HNS domain name registrations with a market value of $35 million; more than 1.4 million ENS domain name registrations with a market value of $24,000,000; more than 100,000 DAS domain name registrations with a market value of $770,000; more than 10,000 FIO domain name registrations with a market value of $23.1 million. more than 170,000 FIDA domain name registrations with a market value of $17 million. The number of unstoppable domains registrations exceeded 1.9 million, with a market value of over $9.5 million, and the total market value of the track exceeded $320 million.
1.2 The Definition of decentralized domains
The decentralized domain name is a decentralized domain name service provider relying on the public chain, which can convert the address on the chain into characters that are easy to remember and identify.
A decentralized domain name has the functions of a centralized domain name system while avoiding the single point of failure system risk and central supervision derived from centralized architecture.
In addition to the uniqueness, convenience, and traceability of traditional domain names, decentralized domain names have the following features.
Decentralization: Unlike the centralized operation of DNS, decentralized domain names run on the chain and have the characteristics of non-codifiability and deletion.
Easier interaction with the chain: it can link to the wallet and simplify the operation. In addition, as an important part of the account system, decentralized domain name is being integrated with other DApps, and users can subsequently log in to various types of DApps and wallets through the domain name, which will also greatly enhance the user experience.
Security: With the security of the underlying public chain, decentralized domain names can minimize the problem of server hacking or domain name theft.
As an on-chain identity and brand symbol: The decentralized domain name replaces the wallet address and becomes the identity representative of the on-chain user. For example, ENS announced that it has supported setting NFT avatars in profiles, which will also be displayed in the DApps app, further improving on-chain personal branding.
1.3 Features of decentralized domain names
The Domain Name System plays a critical role in discovery, connectivity and identification activities.
As one of the most fundamental and persistent components of the Internet backbone infrastructure, the Domain Name System needs to set extremely high standards for its longevity, stability and technical scalability. An ideal-state decentralized DNS needs to have several characteristics: distributed and decentralized, openness and compatibility, and stability and scalability.
1.4 The basic structure of decentralized domain names
At present, the industry still lacks a unified definition and analysis framework for decentralized domain names. However, based on the analysis of existing decentralized domain name projects, it can be roughly divided into 4 layers of an architecture reference model, namely: basic technology layer, governance operation layer, incentive mechanism layer, and presentation layer.
1) Base technology layer: decentralized domain name system mostly uses blockchain technology as the underlying infrastructure.
2) Governance operation layer: Taking ENS as an example, a decentralized domain name system mostly takes intelligent management as the main governance means, and through the organization form of DAO (Distributed Autonomous Organization), the system of obtaining consensus is codified by a smart contract, and the on-chain and off-chain collaborative governance.
3) Incentive layer: The owner of a decentralized domain name independently owns the ownership of the domain name, and participates in the governance of the system usually also obtaining the blockchain-based pass.
4) Expression layer: Decentralized domain names have various expressions, depending on the blockchain network and technical architecture, it can be either a top-level domain like HNS TLD or a second-level domain ending with .eth on ENS.
1.5 Obstacles to the development of decentralized domain names
1) Traditional Internet has developed a dependency on the use of DNS
Most decentralized domain name systems are not well compatible with the current domain name system, and even if there are available solutions, it is difficult to convince users to switch to decentralized domain names. So far, no decentralized domain name system has achieved large-scale application in the traditional Internet domain.
2) Decentralized features or abuse
One of the characteristics of decentralized protocols is that once anyone adds information to the protocol, no one else can remove it. If a decentralized domain name is linked to content that advocates illegal crimes, the protocol itself may be stigmatized as a result. At the same time, the decentralized governance mechanism is prone to unwise decisions.
3) Insufficient decentralized infrastructure construction
The current decentralized domain name system can not cope with the needs of hundreds of millions of devices around the world access, not enough to support the needs of large-scale adoption.
4) The cost of use may be higher than traditional domain names
Some decentralized domain name systems, such as ENS, registration and renewal fees may be higher than ordinary traditional domain names.
2. The current status of decentralized domain name development
2.1 Classification of decentralized domain names
As mentioned above, decentralized domain names are not a recent concept, attempts to solve the drawbacks of DNS centralized architecture have existed for a long time, and since 2010, decentralized domain name projects with different tracks and tendencies have gradually emerged, which can be roughly divided into two major categories:
top-level domains and second-level domains, based on the hierarchy of domain names.
1）Top Level Domains
The top-level domain name is the highest level of the Internet DNS hierarchy, generally consisting of numbers, letters, and “.” Individuals and organizations that own a top-level domain name can rent or sell the second-level domain names under their top-level domain names to other users.
Among the existing decentralized domain name projects, HNS and FIO support users to register top-level domain names.
2）Second level domain name
A second-level domain name (also called a subdomain) is the field closest to the left of the top-level domain. For example, wallet.eth, bbs.eth, etc. are second-level domain names. Users registering through programs such as ENS, DAS, SID, FIDA, Unstoppable Domain, etc. are all second-level domain names.
2.2 Key Project Analysis
2.2.1 Handshake（HNS）
Project Intro
Handshake is a decentralized naming protocol and certificate authority that aims to enable domain name registration with an open domain name auction system run by its blockchain network, replacing ICANN and CAs and unlocking the Internet’s dependence on centralization to make it safer, freer, and more resilient.
HNS domain names can be used for a variety of purposes, such as the URL of a website, an email address, or the address of a cryptocurrency wallet.
Project History
Handshake was created by a group of technical people deeply involved in cryptocurrencies, including Joseph Poon, who created the Bitcoin Lightning Network, Boyma Fahnbulleh, a contributor to Bcoin, Andrew Lee, CEO and co-founder of early Bitcoin startup Purse, and Christopher Jeffrey, CTO.
Institutional contributors include Handshake Alliance and Namebase. prior to the public announcement, the Handshake project was in stealth mode for a long time in secret development.
- August 2018-Founders announce that Handshake has raised a total of $1020w in investment, with each investor buying a combined 7.5% of the initial HNS supply, valuing the Handshake network at $136m.
- September 2018-Testnet 2.
- January 2019-Testnet 3.
- April 2019-Testnet 4.
- February 2020-Handshake Mainnet main net launches, the first version only allows miners to join the network and start generating blocks, this phase places restrictions on users and does not allow them to transfer tokens or participate in bidding. Namebase, the site used to host the HNS-BTC swap and the Handshake-based online auction of TLDs, is also launched in the same phase.
- February 2020 – Enabling on-chain trading and auctions. Once Handshake reaches its 2016 block height, network transactions will be unlocked and users will be able to pick up their pre-allocated tokens and perform token transfers, as well as green light smart contracts for Vickrey auctions, enabling users to start bidding on TLDs via Namebase.
- April 2021 – Handshake team fixes a vulnerability that can inflate HNS tokens.
- December 2021 – Namecheap website is updated with a new Handshake Domains option in the Domains section, offering registration of 11 Handshake domains such as .saas, .creator, .elite, etc.
Functional modules
1) Register Domain Name – The target users of this part are web developers.
The registration of TLD (Top Level Domain) is done by auction. On the Vickrey auction provided by Handshake, users can use HNS tokens to make secret bids and the highest bidder will win the auction and get the domain name by paying the second highest price. The way to register the corresponding SLD (second-level domain name) is similar to the traditional domain name registration, where Handshake is equivalent to ICANN and each user who registers a TLD is equivalent to a domain name registrar, and to purchase an SLD, one needs to buy it from the owner of the TLD to which it belongs. The sale of second-level domain names is not the focus of Handshake, which is available at namebase.io, and the end result is not written on the blockchain.
2) Binding public key – Under the centralized system, users need to buy certificates from CAs after purchasing domain names, and the certificates essentially provide a credible binding relationship between domain names and public keys. Anyone who can present the private key can prove that he or she is the owner of the domain name, and then the communication security of the website will no longer depend on the centralized organization.
3) Registered User ID – The target user of this part is every ordinary user. the name registered on Handshake, besides being used as a domain name, can also be used as a user ID, which is unique and unchanging. While traditional user IDs are generally provided by social networking software such as WeChat and Facebook, i.e., provided and managed by centralized companies, the user IDs registered on Handshake are unique in comparison to
i. One ID can be used across the network – the user ID registered on Handshake can be logged in on all websites that support Handshake, and the ID can also be used as a website address.
ii.Private key login – Like domain names, the user ID registered on Handshake is also bound with a public key, and the corresponding private key can be used to prove the identity of the owner and to login to the website.
iii.Realize peer-to-peer secure communication – Handshake can realize fully decentralized peer-to-peer secure communication between two user IDs, abandoning the control of centralized companies behind social platforms such as WeChat, and not requiring PGP encryption like email.
iv.Can bind digital assets – User IDs can be seen as free people in digital space because they are unique across the network and can use private keys to prove ownership, and can be used to accept cryptocurrencies, or bind ownership of a set of data, etc. They can be used as support for Web 3.0.
Project advantages
1) Compatible with DNS system: Although Handshake is a decentralized domain name system, it does not conflict with the current DNS system because all TLDs of the DNS system, which Handshake has reserved, will not be open for registration in Handshake, so that it also avoids the abuse of the domain name system. Also, Handshake reserves the top 100,000 visited website domains on Alexa.com for use by the corresponding company. When a company wishes to register a Handshake top-level domain name, it simply needs to bring the appropriate proof to Handshake to receive it. Therefore, the Handshake system will not have any conflict with the DNS system and avoid the corresponding trouble.
2) Continuous supply of quality TLDs: Compared to Blockstack ID, which is a first-come, first-served model, Handshake, which releases domain names gradually and requires auction bidding, can better prolong users’ interest in registering Handshake domain names and increase the value of domain names and users’ willingness to migrate to the Handshake system. It also increases the value of domain names and the willingness of users to migrate to the Handshake system. At the same time, Handshake provides simple and memorable names that are unique across the network, which also gives it an advantage in competition with other naming systems.
(3) Can be bound to scarcity of digital assets: If the future Internet development trend is Web3.0, that is, clear and support the private rights of data, then the Handshake domain name has its value of scarcity and speculation and also can be used as the support of coin price.
Token economy
The token issued by Handshake is HNS. Users who want to register Handshake’s top-level domain name must use HNS in order to bid and pay renewal fees for the domain name.
The HNS mechanism is similar to Bitcoin, and its quantity is capped at 2.04 billion.
| Token Volume | Market Cap | Current Unit Price | Dex/Cex | CMC Rank |
| 2,040,000,000 | $32,968,946.76 | $0.065 | Gate and 8 other exchanges | 434 |
Ranking of the highest-priced domain names in the history of the auction
| Domain | Auction Price/HNS |
| wallet | 350,000 |
| x | 311,000 |
| b | 240,000 |
| crypto | 200,000 |
| 8 | 180,005 |
| u | 151,001 |
| js | 147,000 |
| d | 135,000 |
| n | 132,566.1 |
| z | 130,000 |
Investment Institutions
Individual Investors-
Bobby Lee (Co-Founder, BTCC), Brayton Williams (Co-Founder, Boost VC), Dovey Wan (Founding Partner, Crypto Investments), Eric Meltzer (Partner, INBlockchain), Fred Ehrsam (Co-Founder, Coinbase), Mo Dong (Co-Founder, Celer), Roger Ver (CEO, Bitcoin.com)投资
Institutions-
Sequoia Capital, United Fund, Boost VC, Founders Fund, a16z Crypto, INBlockchain, Genblock Capital, Nima Capital, Kenetic Capital, DHVC, Access Ventures, Ausum Ventures, Dekrypt Capital, Digital Currency Group, Draper Associates, HASHED, Pantera Capital, Polychain Capital, SNZ, Scalar Capital
Media Information
| Official Website | https://handshake.org | Quantity |
| https://twitter.com/hns | 23,252 | |
| Github | https://github.com/handshake-org | / |
| https://reddit.com/r/handshake | 3,500 |
Conclusion
Handshake focuses on building a decentralized network that integrates registration, authentication, transactions and resolution of domain names, using a decentralized, permissionless naming protocol compatible with DNS, where each peer verifies and is responsible for managing the root zone, with the aim of creating an alternative to existing certificate authorities.
As an independent blockchain, Handshake has the space to grow and manage itself without interfering with other projects and without having to compete for priority with other use cases operating in parallel in the same network (e.g. gaming or DeFi), offering more prominent advantages in terms of decentralization and scalability.
However, because it is on a separate blockchain, Handshake is more difficult to integrate with other blockchain systems, and it will take some time to gain mass adoption by accessing the traditional information Internet.
2.2.2 Ethereum Name Service（ENS）
Project Intro
ENS, which stands for Ethereum Name Service, is a scalable, distributed, and open naming system based on the Ethernet blockchain, mainly serving human-readable mapped names. qianbao.eth to a machine-readable identifier with the ability to read Ethernet addresses, content hashes, and metadata.
In addition to the native .eth top-level domain, DNS top-level domains such as .luxe, .xyz, .kred, etc. have been integrated into ENS.
Project History
- June 2016 – ENS pilot project phase. ENS founder Nick Johnson (former Google engineer) accepts an invitation from Ethereum to develop a decentralized domain name service for one of the projects on Ether.
- March 2017 – ENS goes live for the first time
- May 2017 – ENS goes live for the second time, providing stable operation. initially, ENS only opens registrations for .eth domain names of 7 and more digits in length, using the Vickrey auction model.
- August 2018 – ENS Foundation is established. Established True Names TLD in Singapore as a non-profit organization to develop and operate ENS.
- May 2019- Change of payment model. Launch a new smart contract, changing from an auction model to an annual fee model.
- August 2021 – Integrated DNS functionality. Allow DNS domain owners to claim ownership of the same domain name in the ENS.
- November 2021- Open DAO governance and token airdrop.
Function Modules
ENS consists of the following main components that work together.
Naming Service: Users can register an.ETH name that replaces a normal Ethereum address starting with 0x with a human-readable name. It also supports addresses for over 100 blockchains, content hashes for decentralized websites, profile information such as avatars and Twitter handles, and more.
DNS Namespace Integration: Users can map DNS domains such as example.com to ENS. users will then be able to receive payments to example.com in cryptocurrencies such as ETH, BTC, and DOGE.
ENS DAO: The ENS charter is decided in the first week of the token launch to define the rules and guidelines for the community. The ENS DAO can always amend the constitution in the future with a 67% approval threshold and a quorum of 5% of the total tokens.
Project Advantages
1) Crypto Payment Support – ENS domain names can be used to bind various cryptocurrency addresses and receive cryptocurrencies.
2) Decentralized websites – ENS can be used to create censorship-resistant decentralized websites and access them through ENS domain names
3) Legacy Domain Support – ENS supports users to register DNS domains they already own (set legacy domains as ENS domains)
4) Transferability – simply send ENS as NFT to transfer ownership from one Ether account to another
Token Economy
ENS is an ERC20 token and a governance token for the Ethereum Name Service platform, used for the following functions.
Governance: ENS is a key component of the ENS DAO management ENS protocol, specifying the weight of a user’s voting rights. The more ENS a user has in their wallet, the more weight they are authorized to have or vote on a proposal. Proposals need to be submitted using a minimum of 100K ENS tokens.
Financial Allocations: ENS token holders can vote to approve ENS DAO financial allocations and expenditures.
ENS tokens total 100M, of which 25% is airdropped to early.ETH second-level domain registrants, 25% to core contributors, and 50% is allocated to the DAO treasury for the ENS growth and development fund. ENS is currently listed on crypto exchanges such as Binance and OKEx.
| Token Volume | Market Cap | Current Unit Price | Dex/Cex | CMC Rank |
| 100,000,000 | $165,768,040.22 | $8.18 | Binance, and 90 other exchanges | 135 |
History of the highest shot in the price of domain names ranking
| Domain | Auction Price/ETH |
| paradigm.eth | 420 |
| 000.eth | 300 |
| poron.eth | 184 |
| sam.eth | 100 |
| ◇◇◇.eth | 100 |
| 003.eth | 83.5 |
| games.eth | 80 |
| wallet.eth | 75 |
| deepak.eth | 75 |
| crypto.eth | 60 |
Investment Institutions
Etherum Foundation, Chainlink, Binance_X, Etherum Classic Labs, Protocol Labs.
Media Information
| Official Website | https://ens.domains/ | Quantity |
| https://twitter.com/ensdomains | 191,830 | |
| Discord | https://chat.ens.domains/ | 40,832 |
| Medium | https://medium.com/the-ethereum-name-service | 7,700 |
Conclusion
ENS is currently the most widely integrated blockchain naming standard and is the deservedly leading project in the decentralized domain name space. Up to now, ENS has nearly 1.12 million registered domain names, integrated more than 500 applications, and more than 400,000 users, from wallets, and applications to browsers everywhere, establishing a relatively complete ecology.
The advantage of ENS is in the native Ether official domain name system, and with the rapid expansion of the Ether ecosystem, it also gains a lot of dividends. However, ENS also has its own limitations, firstly, ENS relies on the ETH network, which makes it difficult to connect to the traditional information internet and another blockchain underlay, and at the same time, each domain name verification and usage needs to incur higher expenses.
2.2.3 Decentralized Account Service（DAS）
Project Intro
Nervos Network is an open-source public chain ecosystem consisting of a set of compatible layered protocols with blockchain technology at their core to solve the blockchain scalability dilemma. DAS (Decentralized Account Services) is a “decentralized account system based on the Nervos CKB”, where all DAS accounts end in “.bit” and can use All DAS accounts end in “.bit” and can be registered in multiple languages and even Emoji, each DAS is unique, and DAS accounts with the same name cannot be created over and over again.
Project History
- June 10, 2021 – DAS open for public testing
- July 22, 2021 – .bit officially opens for registration
- Q3 2021 –
Released to 35% of registrable accounts
Integration with Firecoin Wallet, MIBAO, TokenPocket
Integrate with Ether and Wavefield chains
- Q4 2021 –
Over 50,000 registered accounts
Integration with imTOKEN, bitkeep, mathwallet and other wallets
Integration with BSC, Polygon chain integration
Integration with Ethereum and wavefield chains
- Q1 2022 –
Integration with Jike
Brand Upgrade
Function Modules
Each DAS account contains the following underlying abstract structure.
Owner, the ultimate owner of the DAS account, who can transfer the account and set up administrators for the account.
Manager, the administrator of the DAS account, who can manage the Records, sub-accounts, etc. of the account; and
Records, the array of parsed records for the DAS account. A parsed record is a series of key-value pairs that are defined by the user or application. The various types of parsed records then form a complete description of identity.
Project Advantages
1) Cross-chain – .bit has powerful cross-chain capabilities and supports any public chain address like ETH/BSC/Polygon/TRON.
2) Autonomy – .bit is a new type of data container, any application can read the data in it and no one can delete it.
3) Open Source – Allows different developers to build applications that can be used in their own ecosystem.
Token Economy
DAS allows users to register and renew domain names using Nervos Network’s native token, CKB, and has not yet issued its own tokens or disclosed plans for token issuance.
| Token Volume | Market Cap | Current Unit Price | Dex/Cex | CMC Rank |
| 36,680,680,992 | $124,534,841.06 | $0.0037 | Binance and other 35 exchanges | 155 |
History of the highest shot in the price of domain names ranking
| Domain | Auction Price/CKB |
| kanye.bit | 1,650,000 |
| jpeg.bit | 1,500,000 |
| simp.bit | 1,000,000 |
| 0005.bit | 400,000 |
| nervosfoundation.bit | 150,000 |
| changelly.bit | 150,000 |
| 11111.bit | 111,111 |
| 2222.bit | 105,000 |
| cloud.bit | 100,000 |
| 0x10.bit | 100,000 |
Investment Institutions
Nervos Foundation, SevenX, HashKey , SNZ, Polygon Ecosystem DAO
Media Information
| Official Website | https://www.did.id | Quantity |
| https://twitter.com/dotbitHQ | 22,065 | |
| Discord | https://discord.gg/did | 21,763 |
| Medium | https://dotbit.medium.com/ | 766 |
Conclusion
The DAS uses the Nervos public chain as the infrastructure for the system, allowing for more unique features than Ether, such as the ability to register and manage the DAS using the private key of any public chain. smart contracts in the Nervos network, without the need to generate Nervos addresses.
The core scenario of DAS is that it can be used as a unified cryptocurrency collection account to support sending and receiving assets from multiple chains, in addition to a homepage for personal information (bit.cc), or as a domain name for decentralized websites, etc. But in terms of the team’s vision and product name, DAS is more like an accounting system, and the domain name is just an incidental feature.
2.2.4 Unstoppable Domains
Project Intro
Founded in 2018, Unstoppable Domains is an NFT domain name provider and digital identity platform dedicated to adding the world to the Web.3 Based on other blockchain-based smart contracts, Unstoppable Domains offers NFT domains minted on the blockchain, giving people full ownership and control of their digital identity with no renewal fees .
Unstoppable supports several different forms of domain name registration, namely
.crypto/.zil/.coin/.wallet/.bitcoin/.DAO/.nft/.x/.888/.bitcoin/.blockchain.
With Unstoppable Domains, people can replace lengthy alphanumeric crypto wallet addresses with human-readable names and log in and trade with over 200 apps, wallets, exchanges, and marketplaces.
Project History
- 2018- Unstoppable Domains Established
- March 14, 2019- .zil Domains Goes Online in Beta
- Jun 2019- .zil domain name goes live on the main web
- Oct 2019- Open .crypto domain name registration
- Feb 2020 – Launch of IPFS web template marketplace
- Mar 2020 – Launch of Unstoppable Google Extensions
Function Modules
Unstoppable Domains consists of two main components: registry and resolver.
The registry of Unstoppable Domains contains two smart contracts, the UNS smart contract is responsible for storing domain name data, such as IP address, corresponding wallet address, etc.; the CNS smart contract is responsible for storing domain name information and providing resolution methods; the resolver is responsible for resolving the data stored on the domain name.
Project Advantages
1) Zero renewal fees – no renewal fees, buy once, own for life
2) Crypto payments support – can store wallet addresses to send and receive cryptocurrencies
3) Multi-chain compatibility – can receive over 275 supported coins and tokens
4) Decentralized website – pre-built templates are provided to help users easily build their own decentralized websites
Token Economy
Unstoppable Domains has not issued its own tokens and has not disclosed any plans for subsequent token offerings.
Current Domain Name Price Ranking
| Domain | Auction Price/USD |
| Pay.x | 250,000 |
| Sky.x | 213,000 |
| Nyc.x | 150,000 |
| Hot.x | 150,000 |
| Buy.x | 150,000 |
| Net.x | 125,000 |
| god.x | 120,000 |
| usd.x | 100,000 |
| thc.x | 100,000 |
| red.x | 100,000 |
Investment Institutions
Draper Associates, Boost VC, Coinbase Ventures, Protocol Labs, Ether Foundation, Zilliqa Foundation
Media Information
| Official Website | https://unstoppabledomains.com/ | Quantity |
| https://twitter.com/unstoppableweb | 279,989 | |
| Discord | https://discord.gg/unstoppabledomains | 15,444 |
| YouTube | https://www.youtube.com/c/UnstoppableDomains/featured | 26,500 |
Conclusion
Just like browsing traditional Internet domains, Unstoppable Domains offers users the opportunity to host sites on the Ether and Zilliqa blockchains. Accessing these sites is also simple for those unfamiliar with blockchain technology. Users can simply add .crypto or .zil (e.g. .com) to the appropriate Unstoppable Domain and navigate to different parts of Web3.
At the same time, Unstoppable Domains will also allow users to link any cryptocurrency address to their domain, allowing payments to be made solely through the use of the domain, which will be used to support all cryptocurrency payments and all cryptocurrency wallets in the future.
In addition to being able to be used as payment, Unstoppable Domains can also provide users with the ability to build censorship-resistant websites, and the domain name registration is for life, with no renewal and no escrow agent required to transfer ownership of the domain name, but the current scenario of landing applications and future applicability is narrow.
2.2.5 FIO Protocol（FIO）
Project Intro
The FIO protocol is a decentralized usability layer that connects crypto wallets, exchanges, payment processors, and any other application that holds or transfers crypto assets.
It is designed to make the user experience of interacting with all blockchains easier, less complex and less risky, thereby reducing user friction.
Project History
March 2019- Wallet-to-Wallet Operability (FIO) Foundation Launched
June 2019- A large number of crypto industry representatives from the Edge wallet, BRD wallet, Coinomi wallet, NodeOne, and Scatter wallet join the FIO board
December 2019- FIO Foundation acquires the intellectual property rights to the software behind the initial version of the FIO protocol from Dapix Inc
December 2019 – FIO Test Network Launches with FIO Address and Domain Pre-Sales
March 2020 – FIO protocol mainnet launched; FIO protocol software open-sourced and accessible via GitHub
April 2020 – First FIO protocol integration released in Edge, Scatter, Guarda, and Trust wallets
June 2020 – FIO Token listed on AscendEX (formerly Bitmax), Bithumb Global and Binance
July 2020 – Launch of e-commerce plugin and proof-of-concept online store
September 2021 – FIO Web application launch
Jan 2022 – FIO Token Pledge goes live
Function Modules
The FIO protocol consists of 3 main functional modules.
FIO Addresses: allows users to initiate on-chain transactions using understandable identifiers such as “tom@trustwallet”.
FIO Requests: allows users to request funds from anyone using a supported wallet through in-app notifications and simple approvals.
FIO Data: allows encrypted metadata to be appended to any transaction.
Project Advantages
1) Human-meaningful: allows users to initiate transactions using human-readable and easy-to-remember identifiers (e.g. “jane@gold”)
2) Decentralized: powered by a public blockchain, without the need for a centralized solution from a trusted third party
3) Secure: Enables transactions to be exchanged between parties in a secure manner. All FIO protocol transactions require an FIO private key, which is stored in the user’s wallet
4) Privacy: Sensitive counter-party information, including public addresses and metadata, can be encrypted on the blockchain
5) Interoperability: Once integrated into a wallet, the FIO protocol can be used with any blockchain and cryptocurrency without any integration with those chains
6) E-commerce friendly: enable payment function requests for each transaction as well as private metadata.
Token Economy
The FIO protocol runs on its own dPoS blockchain (FIO chain). As an internal economic driver, FIO tokens are used to pay address and domain registration fees, transaction fees, and block producer votes.
| Token Volume | Market Cap | Current Unit Price | Dex/Cex | CMC Rank |
| 1,000,000,000 | $23,359,966.46 | $0.039 | Binance and 13 other exchanges | 525 |
Investment Institutions
Binance Labs
Media Information
| Official Website | https://fioprotocol.io/ | Quantity |
| https://twitter.com/joinFIO | 92,845 | |
| Discord | https://discord.com/invite/pHBmJCc | 7,071 |
| Medium | https://medium.com/fio-blog | 1,400 |
Conclusion
With human-readable wallet names (e.g. jane@smith), decentralized payment requests (e.g. for invoices, order carts, etc.), cross-chain metadata (e.g. recording invoice IDs, order numbers), etc.), and usability features such as NFT anti-counterfeiting, FIO can greatly enhance the inter-wallet transaction experience. It can be integrated into any wallet, exchange, payment processor, NFT marketplace, or Staking platform.
However, in contrast, FIO only supports the resolution of digital currency addresses, making it difficult to connect the traditional information Internet and blockchain underlay. In general, FIO is more oriented towards simplified wallet addresses that facilitate transactions rather than the traditional concept of net domain location identification.
2.2.6 SPACE ID（SID）
Project Intro
SPACE ID is using an Oracle to build a common name service network that seamlessly connects and coordinates people, assets and dApps across the blockchain. it is decentralized, censorship-resistant, and open source.
Project History
- March 29th, 2022- Space ID’s official website launched
- July 5, 2022- Whitelisting campaign goes live
- July 5, 2022- .bnb domain name beta site launched
Function Modules
Space ID consists of 3 main functional modules.
Yoda: an Oracle network that ensures the uniqueness of names registered across multiple chains.
Jedi: a smart contract that runs on various chains for name registration and resolution.
Lucas: a temporary blockchain that bridges and stores data on different chains.
Project Advantages
1) Anyone can register a .bnb domain name to replace the traditional BNB chain address.
2) Users will have an NFT representing ownership of the domain name.
3) Custom records can be set up for .bnb domain names to enjoy an easier user experience with thousands of dApps in the BNB chain ecosystem.
Token Economy
Space ID has not issued its own tokens and has not disclosed any plans for subsequent token issuance.
Investment Institutions
Binance Labs
Media Information
| Official Website | https://space.id/ | Quantity |
| https://twitter.com/SpaceIDProtocol | 51,022 | |
| Discord | https://discord.com/invite/2qrrf79K2A | 46,874 |
| Medium | https://medium.com/fio-blog | 597 |
Conclusion
Space ID is a decentralized censorship-resistant and open-source domain name service founded by the anonymous Web3 native startup team and is currently in domain name registration beta.
Space ID builds on the technology of ENS, but unlike ENS domains that are limited to the ETH network, Space ID intends to create a common name network capable of spanning multiple blockchains and dApps. This network can seamlessly coordinate and connect people, information, assets, and applications across blockchains.
In recognition of the BSC network’s performance and for the purpose of differentiating themselves from the competition, Space ID chose to build the ideal common name network starting with their first product, the .bnb domain name service.
The .bnb domain is currently being integrated with wallets, block browsers, and other dApps on the BSC chain. Although Space ID still has a relatively small impact compared to other decentralized domain projects, Space ID may have a large future as the only universal username with cross-chain interoperability.
2.2.7 Bonfida（FIDA）
Project Intro
Bonfida is the top infrastructure developer on Solana and offers a variety of products including (1) on-chain perpetual contracts, (2) Solana Name Service for auctioning and trading readable Solana addresses, and (3) Bonfida Bots, which allows users to automate their trading strategies and place follow-on trades on Serum DEX. All three products and their revenues will contribute to the appreciation of the FIDA token.
Project History
- September 2020- Provided API services for DEX Serum built on Solana
- December 15, 2020 – Closes $4.5 million seed round of funding
- December 22, 2020 – Launches “FIDA” token
- May 16, 2021 – Allows mapping of Twitter usernames to .sol domains
Function Modules
Composed of the following main components.
Perpetual Contracts: The Audaces protocol is the first perpetual contract protocol built on top of Solana.
Name Service: The Solana Name Service provides a decentralized and affordable way to map domain names (.sol) to the chain.
Bonfida Bot: This service uses smart contracts to automate trading strategies and follow-through trades on top of Serum DEX, and supports TradingView functionality.
Project Advantages
Twitter Username Binding: Use SNS domains to bind Twitter usernames to Solana accounts
Using SNS transactions: Use .sol domains or Twitter usernames to send SPL passes and native SOLs instead of using wallet addresses
Using SNS to resolve websites: you can use SNS to create decentralized websites and access them through SNS domains
Token Economy
FIDA is the platform’s native functional token, with the following features.
Value Accumulation: A percentage of the fees generated by Bonfida products (perpetual contracts, name services, Bonfida Bot) will be used to purchase and destroy FIDA.
Pledge Reward: Users will receive FIDA as a reward by pledging their FIDA tokens.
Fee Discounts: Users will receive a ladder discount on platform fees for products such as perpetual contracts and domain services based on the number of FIDA held.
Governance: Token holders will be able to submit and vote on governance proposals to influence platform development and fund management.
| Token Volume | Market Cap | Current Unit Price | Dex/Cex | CMC Rank |
| 998,908,948 | $15,896,204.09 | $0.36 | Binance/Coinbase/FTX and 24 other exchanges | 613 |
Current Domain Name Price Ranking
| Domain | Auction Price/USD |
| 1988.sol | 8,053.92 |
| lushsux.sol | 5,369.28 |
| lillyfinance.sol | 5,369.28 |
| saitacity.sol | 5,369.28 |
| whistleblower.sol | 5,369.28 |
| dotpigeon.sol | 5,369.28 |
| intimate.sol | 5,369.28 |
| saitaguru.sol | 5,369.28 |
| picoin.sol | 5,369.28 |
| desiigner.sol | 5,369.28 |
Investment Institutions
CMS Holdings, Three Arrows Capital, Spartan Group, Genesis Block Ventures, Sino Global Capital, Fisher8 Capital, FBG Capital, Prophet Capital
Media Information
| Official Website | https://bonfida.org/ | Quantity |
| https://twitter.com/bonfida | 96,331 | |
| Discord | https://discord.com/invite/2qrrf79K2A | 46,874 |
| Medium | https://bonfida.medium.com/ | 2,300 |
Conclusion
Bonfida’s Solana Domain Service aims to provide a decentralized and affordable way to connect domain names (.sol) to on-chain data. This on-chain data can be SOL addresses, IPFS content IDs, images, text, or anything else.
In most cases, you can own a .sol domain “forever” for a starting price of 21 USDC, which is less than the cost of a .eth domain. But again, there are far fewer applications and ecosystems that can support .sol domains than .eth.
For domain investors who are optimistic about the growth of the Solana ecosystem, investing in Solana domains is your paradise, as you can either mint new domains or look for low-valued domains in the market, where there are still thousands of potentially valuable domains that have not been discovered.
3. Analyst’s view
In response to the centralization of the domain name system, there are already several decentralized domain name projects in the industry, such as Namecoin, HNS, ENS, etc.
In addition to the decentralization of blockchain, decentralized domain names also have the characteristics of uniqueness and scarcity of Internet domain names. This makes people imagine the development of decentralized domain names.
But at present, decentralized domain names are still far from real large-scale adoption and also need more investment, integration of more DApps, browsers, and optimization of user experience in the context of multiple chains, in order to attract more developers and users and gradually form a network effect.
As the identity and brand symbol of Web 3.0, the road of decentralized domain name development has just begun.
4. Future Outlook
As we approach the Web3 era at full speed, the emergence of decentralized identities and various Web3 domain services creates a powerful identity system. These applications can greatly improve the accessibility of blockchain networks and dapps, and they will undoubtedly become a fundamental part of the world of the future.
However, this paper argues that there is still a long way to go to replace the traditional DNS system.
The concentration of social capital makes it impossible for decentralized domains to enter most traditional industries. The inherent interest i.e., those who will not give up their own resources, and the group with limited social resources obviously cannot occupy the main position in terms of discourse.
The application threshold of Web3 domain names. Although decentralized domain names are the future development trend, most of the general public cannot afford to participate in decentralized domain names compared to traditional domain names, and most of those who ride on them are groups with certain technical and linguistic advantages and certain information resources, which determines that decentralized domain names can never become universal in the short term.
The risk of blockchain protocol itself. Compared with traditional domain names, decentralized domain names can effectively avoid central regulation and hacker attacks, but there are also risks of protocol loopholes and attacks by more than 51% of concerted actors.
In summary, decentralized domain names will definitely achieve greater development in the future, and the exploration and attempts about decentralized domain names will be carried out all the time. However, the subsequent development of decentralized domain names will take what form is still an unknown factor. But no matter what, trying a new domain name architecture based on the traditional DNS system is always social progress, there is no doubt about it.