Aditya Katira
Aditya Katira

Aditya Katira

The Rise of NFT Domains

The Rise of NFT Domains

Aditya Katira
·Jan 11, 2022·

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What is an NFT?

Put simply, an NFT, or Non-Fungible Token, is a unique digital asset. They represent real life objects like art, music, videos and in-game objects. However, they are bought and sold online, and many times purchased using cryptocurrency. Most NFT’s are part of the Ethereum blockchain, an open sourced blockchain.

A NFT can not be replaced with something else, because they have distinctive properties. An example of a non-fungible object is The Mona Lisa painting by Leonardo da Vinci. If you traded it for another painting, you would have something completely different. There is nothing that compares and can be traded equally for The Mona Lisa.

Some characteristics of NFT’s include:

  • Each non-fungible token has a unique identifier
  • Each token has a creator and an owner. It is easy to verify yourself as either the creator or owner.
  • NFT’s are not interchangeable with other tokens. Each is completely unique.
  • NFT’s are based on Ethereum.
  • They can be sold through an NFT market like Ethereum or sold from consumer to consumer.

NFT’s are not to be confused with a fungible token, like the cryptocurrency Bitcoin. Bitcoin is a digital currency, without a central bank or single administrator. It can be sent from user to user through bitcoin network without the need for an intermediary. Furthermore, there is no difference between two Bitcoins, they are like two United States one dollar bills. Interchangeable, physically identical and worth the same amount.

Examples of NFT’s

Charlie Bit My Finger, Nyan Cat GIF, CryptoKitties and NBA shots are just a few examples of recently sold NFT’s. Although most often associated with digital art, NFT’s can apply to any product online. And they are truly taking the digital world by storm. One NFT, Beeples “Everydays: The First 5000 Days”, sold for a whopping $69 million dollars this year.

Some examples of NFT’s include: unique digital artwork, a video, gifs, an essay, digital collectible, a video game item, designer sneakers, an online ticket for an event and a domain name. However, NFT’s are still so new. Because they include anything that is unique and requires individual proof of ownership, in the future there could be much more that is identified as an NFT.

NFT’s and Domain Names

As the interest in NFT investments rise, there will be more and more websites handling the transaction of NFT’s. Thus causing an increased need for NFT related domain names. Domain company, Donuts, monthly market report of trending keywords reported a huge spike of domains containing NFT’s in March and April in 2021.

The Importance of Domain Names in the NFT Industry

Domain names are the digital real estate upon which we build our businesses. They provide a portal for customers to reach us. Domains have never been more valuable or important as they are in 2021. The rise of the United States E-commerce goes hand in hand with the increased sales of NFT’s. There are 4.27 billion Internet users in the world, and a website provides access to each and every one of them.

This is true for domain names in the NFT industry. With a memorable NFT domain name, this digital real estate will become a destination for both NFT buyers and sellers. Additionally, a domain name shares many characteristics with NFT’s. They are each unique, non-fungible, with proven ownership.

Purchase an NFT Domain Name

As the number of NFT investments rise, it will be crucial to have marketplaces and places of transactions online. Owning an NFT related keyword that is one word and memorable will be the key to success in the new world of digital currency.

 
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