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The internet is undergoing a paradigm shift. As centralized platforms face increasing scrutiny over censorship, data privacy, and control, a new wave of startups is building the next iteration of the web: Web3. At the heart of this movement is a push for decentralization, and with it, a new approach to online identity through blockchain-based domains like .eth, .crypto, and .zil.
This article dives into why Web3 startups are embracing decentralized domain names, particularly .eth domains, and what that means for branding, security, and the future of online identity.
Decentralized domains are not registered through traditional ICANN-accredited registrars. Instead, they exist on blockchain networks like Ethereum or Zilliqa and are managed by smart contracts. Examples include:
These domains aren’t hosted on centralized DNS servers. Instead, ownership is recorded on a blockchain, making them:
In traditional domains, your registrar can technically suspend or take back your domain based on policies or legal requests. With .eth domains:
This aligns perfectly with Web3’s values: sovereignty, privacy, and censorship resistance.
.eth domains can be mapped to Ethereum wallet addresses. This enables:
For startups building wallets, DeFi tools, or DAOs, this functionality is core to user experience.
Using a .eth domain signals membership in the Web3 space. Just as .tech or .ai implies innovation, .eth communicates:
In a world where tribal brand affiliation matters, your domain is part of your identity.
While still early, some .eth domains are being paired with IPFS (InterPlanetary File System) to host decentralized websites. This means:
For example, "yourstartup.eth.link" can point to an IPFS-hosted homepage.
The Ethereum Name Service (ENS) is the primary system for managing .eth domains. Features include:
ENS is governed by a DAO (ENS DAO) that votes on protocol upgrades and policy.
Traditionally, .eth domains don’t resolve in standard browsers without:
However, adoption is expanding. As more browsers integrate ENS natively, these domains will become more accessible.
While .eth domains offer innovation, they come with trade-offs:
For high-stakes businesses, these limitations may require hybrid solutions.
The gap between Web2 and Web3 is narrowing. New tools are emerging to bridge traditional domains with blockchain domains:
This hybrid model lets startups benefit from decentralization while maintaining usability.
Some registrars, like NameSilo, are watching this space closely. While blockchain domains don’t currently route through ICANN infrastructure, there’s growing interest in:
In the future, hybrid registration and DNS integration may become standard.
For Web3 startups, .eth domains offer more than novelty. They are strategic assets that align with decentralized values, integrate with wallets and dApps, and serve as a badge of blockchain-native identity.
While they don’t yet replace traditional domains, they complement them in powerful ways. The smart move for founders? Secure both a traditional domain (like .com or .xyz) for accessibility and a .eth domain for Web3 identity.
The decentralized web is coming, and with it, a new set of tools to own your presence online.
At NameSilo, we stay at the forefront of domain innovation. While we specialize in traditional domains, we also help founders navigate the evolving world of decentralized naming. Lock in your brand with a .com or .xyz, then explore Web3 options with confidence.
Visit https://www.namesilo.com to secure your online identity.
