Tokenizing Your Domain? Here’s What You Should Know
Non-Fungible Tokens or NFTs have been soaring in value throughout the past year. In 2021, Bloomberg reports that nearly $41 billion worth of cryptocurrency was spent on the NFT marketplace - closing in quickly on conventional art sales, which amounted to $50 billion in 2020. CNBC also reports that NFT trading volume rose by 704% between the second quarter of 2021 and the third quarter of 2021. The tech that’s next in line? Aftermarket domains.
That said, there are a lot of NFT applications yet to be explored. Today, we discuss NFT applications in the realm of aftermarket domain hosting and web applications.
NFTs in Web Hosting
The process of domain tokenization continues to provide benefits that the current system just can’t supply. Tokenization enables better liquidity, faster settlements, and reduced costs through the same blockchain technology that secures ownership of virtual assets.
Although tokenized aftermarket domains may not be a widely-adopted practice (yet), continuous progress is present. Between the growth of Ethereum and the maturation of the domain market, there are over 300,000 .eth domain names in existence, all managed by the Ethereum Name Service (ENS).
As opposed to your average run-off-the-mill website, the main benefit that domain tokenization provides is the possibility of fractal ownership for a wide number of individuals. Where current websites only allow one absolute owner, fractalization allows a number of people to have ownership and thus an economic incentive to contribute to the growth and success of a website, either by adding content or promoting it themselves.
When a website is eventually flipped and sold to a large conglomerate, they don’t buy it from just one person, they buy it from all the existing owners, with revenue apportioned based on fractional ownership. This process also allows for true autonomy of a company website. An entrepreneur could quite easily tokenize their domain, establish rules for fractional ownership, how value is exchanged, and how people can contribute to the site.
While consumer protection remains up in the air for this asset class, the potential applications for this system are limitless - spanning industries as diverse as software development to browser-based web-apps. Any company could find a way to use tokenization to secure their online presence, there’s simply no ceiling to the potential of domain hosting.
Cloudname is the first all-in-one platform for traders interested in trading domain names and earning passive income through Web 3.0. Combining advanced features and analytical tools in the domain trading market, you can tokenize domain names, add value via SEO, and then sell it again for a profit.
On a long-term scale, domain trading allows end-users to build up investment portfolios that generate passive income through different streams and channels. We’re one of the leading platforms to trade and tokenize domain names through the use of NFTs, running on multiple chains such as Ethereum, Solana, Polkadot, and the Binance Smart Chain to promote the free flow of resources.