Web3 Domain Service Outlook
The growth potential of Unstoppable Domains
TL;DR
Crypto Name Service (CNS) is the Web3 version of Domain Name System (DNS). It converts lengthy cryptocurrency wallet addresses into easy-to-remember domain addresses to increase popularity and usability.
Asian countries, especially China and India, are expected to play a key role in the CNS market due to its huge population and rapid digitalization. As the blockchain market moves to Asia, significant Web3 domain market growth is expected.
Unstoppable Domains is a leading CNS provider, offering a wide range of domains and granting permanent domain ownership with a single payment. It is expected to be at the forefront of much-needed standardization in the current CNS market.
40 characters. That’s longer than a phone number
To send cryptocurrency, you need to know the other person's wallet address. However, cryptocurrency wallet addresses are complex strings of characters like the one above. They are difficult for people to remember, let alone type out. In order for the cryptocurrency market to achieve the next level of growth, "mass adoption" is essential. But if people can't even remember their own wallet address, they'll probably give up before they even take the first step.
As a result, various solutions have emerged to convert difficult wallet addresses into simple domain addresses. These are called domain CNS (Crypto Name Service). For example, CNS matches '0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045' to the address 'vitalik.eth' as shown above. Users don't have to memorize difficult wallet addresses, they just have to remember the domain in easy-to-remember text form.
As such, Web3 domains play an important role in improving the usability of crypto wallets and accelerating their adoption. This is similar to the Domain Name System (DNS) in the Web 2 market. Just as DNS matched IP addresses to domain names, CNS matches wallet addresses to Web3 domains.
The present DNS market, and future CNS market
In the Web 2 market, DNS plays a key role in helping users access web services. Without domain addresses, users would have to memorize 12-digit IP addresses such as "123:123:123:123," which is nearly impossible to do in the current era of countless web services. By utilizing text-based addresses, DNS has made web services more accessible and helped vitalize the market.
DNS market players provide three core services: 1) operations and management, 2) security, and 3) transactions, with major players including Microsoft, Akamai, and Godaddy. Operations and management is essential because there are many steps involved in resolving an IP address through a domain. Security is an important part of this, as domains are targets of online attacks. With the increasing value of user-friendly domain names, domain trading platforms have come to play an important role in the market as well.
The CNS market is also growing, and the size and variety of competitors is likely to follow suit. Since domains are associated with an individual's crypto wallet address, they target a much broader range of customers than enterprise-focused DNS users. Although the unit costs may be lower, the overall market size is expected to expand rapidly. Furthermore, transactions on Web3 domains are directly linked to personal finances, so technological advances in security are much needed.
Asian DNS market growth potential
Asia plays a key role in the global DNS market. China and India, in particular, lead the way in terms of the number of internet users globally, thanks to their huge populations and rapidly growing digital infrastructure. Moreover, the rapid pace of digitization in these countries and the continuous increase in investments in the ICT sector are fueling the growth of the DNS market.
These trends in the DNS market in Asia are expected to be mirrored in the Web3 domain market. Since domain addresses in the CNS are linked to an individual's crypto wallet address, the population has a direct correlation with the size of the market. In this regard, China and India are expected to emerge as major markets (although the pace of popularization is difficult to predict due to differing levels of regulation by country).
The blockchain market started in the United States and is gradually spreading to Asia, and the Asian web3 market is growing rapidly. Services with convenience and utility in early markets can attract and retain users, which is expected to be a great opportunity for early entrants despite the risks. Asia tends to be a fast adopter of IT technology, so there is likely to be less resistance to using new technology such as CNS, which could be an opportunity many find appetizing.
Unstoppable Domains, the leading example
Unstoppable Domains is a leading example of CNS that serves as the first stepping stone to Web3 by providing domain information that users can directly own and control. Unstoppable Domains currently has more than 3.7 million domains and is developing various services such as AI art production, NFT issuance, and gift cards based on those domains.
One time purchase for a lifetime ownership
Unlike Ethereum Name Service (ENS), which offers only one domain, .eth, Unstoppable Domains offers a total of nine domains. In addition, it is currently brokering 11 domains, including .eth and .polygon. Unlike traditional DNS where you pay on a yearly basis, once you purchase a domain through Unstoppable Domains it's yours forever and there are no renewal fees.
The need for standardization
Unlike the DNS market, the CNS market has no standard yet. This means there is a disadvantage in that there is a lack of certain services. Therefore, it is necessary to agree on a standard as the amount of users increase. Unstoppabe Domains currently has 863 uses, which is excellent for domain utilization and is expected to become a leader in market standardization. It can be used in web browsers such as Brave and Opera, as well as large apps such as Coinbase. This makes it unrivaled in terms of user convenience.
Conclusion
The CNS market seems to be a market that will inevitably grow with the popularization of Web3. In particular, the Asian market is considered to be especially important to the growth of the CNS market due to its 1) overwhelming population, 2) ease of initial market entry, and 3) rapid IT adaptation.
Unstoppable Domains, in particular, is likely to expand rapidly in Asia due to the ability to own a domain with a single payment and the variety of service providers that can integrate with it. However, in order for individuals to feel the need for domains, the use of personal wallets needs to increase first. which may be a limiting factor for market growth as many countries, including Korea, use CEXs that do not directly handle personal wallet addresses.
