The curve war was the battle for liquidity and control in Defi. Now, the domain war is about to begin and it promises to be more intriguing than you think. Let’s get to the reasons.
Domain is King
You have probably heard that finding a perfect domain name is what it takes to build a strong presence on the internet. As a rule, most online businesses occupy Top Level Domains(TLDs)such as .com, .org, etc. And it’s no surprise that the domain industry itself is heavily dominated by the .com TLD, which is owned by a company with more than 60% of the total profits.
In the wake of the 2020 pandemic, businesses leveraging the “new normal” brought an increase in the registration of domain extensions globally as they went digital. The fair advantage that digitization promised put such domain names as .org and .com, in the top five categories of the most registered domain names in 2021. This domain ranking boils down to two things that the dot-com era is known for: gaining market share and staying ahead of competitors.
Furthermore, the emphasis on domain name extension in the digital world remains as valid today as it was in the 90s when every business was in the race to make the most of their internet access, which is why the emerging web3 market will not be an exception to the general rule.
The Domain War Is Here!
If it could be said that the internet was magic, the domain name would be the wand. After all, it underlines how the internet itself works in a simple yet technical way. This can be interpreted to mean that a domain name is all that lies behind the functioning of a website which is where you go in search of information on the internet.
Every brand or business in web3 wants to make the most of their online presence and the internet is all they share in common. But there can be only one rule to taking a slice of it: finding the perfect domain extension in web3.
It’s The War of The Protocols
Leading blockchain protocols such as Ethereum and Solana have set the stage for what I describe as the “Protocol War of The Century’ with each one of them intent on onboarding millions of crypto users to a name service extension that puts the spotlight on them.
As of now, it’s fair to say that the Ethereum blockchain is leading in the domain war with the total number of name extensions currently registered under the Ethereum Name Service(ENS)cruising to 2 million, barely two months after it recorded 328% increase.
Ethereum’s new edge is neither scalability nor a cheap gas fee but of the tremendous amount of interest that the ENS has attracted within its ecosystem since January.
DomainDAO And Its Prospects
Where does the world’s first name extension DAO stand in all of these? This question puts a label on DomainDAO as a participant rather than a neutral party in the domain war. As a DAO on a mission to provide DAOs with a unique name service, its chances are high in the scheme of things.
DomainDAO does have a potential for capturing a significant market share in web2 and web3 name extensions, and the possibility is increased by its ongoing efforts to register the .dao domain as a TLD and propagate the demand for it in the crypto world. It’ll certainly be a game-changer when that happens. Let’s wait and see.