by • Decentralized domain services are becoming more popular as Web3 functionality grows.
• Ethereum Name Service (ENS) and Unstoppable Domains have seen over 6 million combined registrations in the past two years.
• Industry leaders believe utility-driven adoption will continue in the future.
Decentralized Domain Services
The rise of Web3 technology has been beneficial for decentralized domain name services, with millions of blockchain-based domains registered to date. Market conditions may be challenging, but industry experts see potential for growth in the future due to utility-driven adoption.
Ethereum Name Service (ENS)
Ethereum Name Service (ENS) is a distributed, open, extensible naming system that runs on the Ethereum blockchain. It allows users to map human-readable names like “alice.eth” to machine-readable data such as cryptocurrency addresses and URLs. Owners of an ENS domain control both it and any subdomains, making it effectively an NFT that serves as an Ethereum wallet address, cryptographic hash or website URL. As of January 2023, ENS had 2.8 million registered domains officially excluding any reregistrations from prior years.
Unstoppable Domains
Unstoppable Domains is another popular decentralized domain service platform which saw significant increases in newly minted domains through 2021 and 2022. The company provides users with censorship resistant websites and webpages where they can store their data safely without worrying about it being taken down by authorities or third parties. Additionally, Unstoppable Domains also allows users to transfer cryptocurrencies directly via their domains rather than having to use wallet addresses or other means of payment transfers.
Industry Progress & Potential
Major players in the space have weighed in on the state of the industry and its potential for future growth – believing that utility-driven adoption will continue driving forward progress within the sector going forward despite market challenges experienced throughout 2021/2022 period . This is because decentralized domains offer businesses and brands an alternative way to serve customers who are taking full control of their own data, wallets and online identity via blockchain ecosystems like Ethereum .
Conclusion
Decentralized domain services have seen millions of blockchain based registrations since their inception – with both Ethereum Name Service (ENS) and Unstoppable Domains being prominent platforms serving this space . Although market conditions may be difficult , industry leaders remain optimistic about the future potential for growth due to utility driven adoption across Web3 ecosystems like Ethereum .
