Web3 Domains 101: How Blockchain Naming Differs from Traditional DNS

The internet as we know it has long relied on the Domain Name System (DNS) as its foundational naming layer, enabling users to access websites by typing human-readable domain names like google.com instead of memorizing IP addresses. DNS is a hierarchical and centralized system managed by organizations such as ICANN, which coordinates top-level domains and delegates authority through a series of registries and registrars. In this model, domain ownership is leased rather than owned outright; users register domains through accredited entities for fixed periods and must continually renew them. The infrastructure underpinning DNS is also dependent on traditional web servers and certificate authorities, which introduces a variety of vulnerabilities and points of control. Against this backdrop, Web3 domains, built on blockchain technology, represent a transformative rethinking of digital identity and naming on the internet.

Web3 domains are names stored on decentralized, blockchain-based networks such as Ethereum, Solana, or Polygon. Unlike traditional DNS domains, which exist within a permissioned and centralized structure, Web3 domains are minted as non-fungible tokens (NFTs), meaning that ownership is verifiable, transferable, and managed via smart contracts. Once a user purchases a Web3 domain—like yourname.eth or project.crypto—they own that domain indefinitely unless they choose to sell or transfer it. There are no annual renewal fees unless explicitly programmed into the smart contract logic, and there is no central authority with the unilateral ability to seize or revoke domains. This introduces a new paradigm where digital identity and naming are user-owned, portable, and censorship-resistant.

A crucial distinction between Web3 and traditional domains lies in their resolution mechanisms. DNS relies on a global network of root servers and resolvers, with queries passed through multiple intermediaries before reaching the authoritative name server. This process, while efficient and time-tested, is inherently centralized and vulnerable to attacks like DNS spoofing, DDoS, and man-in-the-middle exploits. In contrast, Web3 domains resolve via blockchain interactions, often facilitated by decentralized applications (dApps), browser extensions, or native integrations into blockchain-aware browsers. For example, when a user accesses a .eth domain, their request is processed through Ethereum smart contracts and read by nodes in a distributed network, not by a central name server. This means the data associated with a Web3 domain—such as IPFS content hashes, wallet addresses, or metadata—is fetched in a way that is cryptographically secure and not dependent on a single point of failure.

Another major departure from DNS is the functional role of Web3 domains as more than just website addresses. Because they are blockchain-native, these domains can act as universal identifiers across decentralized platforms. A single Web3 domain can link to multiple wallet addresses, serve as a login credential for dApps, or even function as a reputation badge within decentralized autonomous organizations (DAOs). This convergence of naming and identity management is a radical step beyond the scope of DNS, which was never designed to serve as a user-controlled identity layer. Moreover, Web3 domains are programmable; their logic can include built-in governance features, automated royalty payments for secondary sales, or integrations with token-gated access systems, opening up a broader range of possibilities for developers and users alike.

Despite their promise, Web3 domains also face challenges. Adoption is still in its early stages, and mainstream browsers generally do not resolve blockchain domains natively, requiring browser extensions like MetaMask or Brave’s native support. There is also a lack of standardization, as multiple competing naming services exist—such as Ethereum Name Service (ENS), Unstoppable Domains, and Bonfida—each with their own protocols, domain suffixes, and user communities. Unlike the DNS system, which benefits from decades of coordination and institutional support, Web3 naming is fragmented and evolving rapidly. Additionally, while Web3 domains offer censorship resistance, this also means that harmful or illegal content can be harder to moderate, posing ethical and legal dilemmas that society has yet to fully grapple with.

Nevertheless, the shift toward Web3 domains marks a significant evolution in how we conceptualize digital real estate and identity. As the internet continues its trajectory toward decentralization, these blockchain-based naming systems offer a glimpse into a future where individuals have true ownership over their online presence. They enable a more resilient, user-controlled internet where naming is not merely a means of navigation, but a cornerstone of sovereignty, interoperability, and trust. In this emerging Web3 landscape, domains are no longer just addresses—they are assets, credentials, and extensions of the self.

The internet as we know it has long relied on the Domain Name System (DNS) as its foundational naming layer, enabling users to access websites by typing human-readable domain names like google.com instead of memorizing IP addresses. DNS is a hierarchical and centralized system managed by organizations such as ICANN, which coordinates top-level domains and…