Over the past few years, there has been a notable shift towards digitalization, creating various opportunities, including the emergence of domain names as a popular investment option due to their potential for healthy returns.

Domain investing, also known as domaining, has gained traction primarily because it offers a promising return on investment (ROI). Domain names are recognized as valuable assets, with some domains fetching millions in sales. Similar to stocks and other assets, domain investment follows the principle of buying low and selling high. Investors acquire a portfolio of potentially lucrative domains and aim to sell them at a profit in the future. For example, in 2009, an investor sold the insure.com domain for $16 million, while the carinsurance.com domain holds the record for the most expensive domain sale at $49.7 million. Although these are extreme examples, many domains fetch hundreds of dollars daily.

The advent of Web3, or the decentralized web, has revolutionized domain services, presenting more opportunities and advantages than ever before. In this article, we will explore the new Web3 domain service, assessing its usability, the reasons for domain acquisition, and the potential for generating income.

Introducing *W3DNA and its Benefits

The *W3DNA protocol is an NFT domain currently available on the Binance Smart Chain (BSC), Ethereum, and Polygon, with plans to expand to other EVM-compatible chains in the near future. This domain offers users a unique domain, name, and account (DNA) in the Web3 ecosystem. It allows clients to access a decentralized website in any language or symbol, create a username, and establish an identity for Web3 applications and accounts to receive cryptocurrencies and interact with blockchain networks.

The NFT domain provides users with a username for Web3 applications and an account to receive cryptocurrency payments. Users can store their avatar and other profile data, which they can utilize across *W3DNA and various Web3 services such as social networks and decentralized messengers.

Launched in 2022, *W3DNA aims to redefine domains by introducing the first-ever extension-less domain. Unlike traditional domains, *W3DNA enables users to 'teleport' from one point to another, eliminating unnecessary steps. This is facilitated by the NFT format of *W3DNA domains. The technology utilizes smart contracts, eliminating the need for processes associated with Web2, such as domain registry and hosting. With no governing body, *W3DNA domains cannot be deleted or confiscated except in exceptional cases decided by the entire network. This grants users creative freedom without limitations.

*W3DNA domains can be accessed in three ways: by installing the *W3DNA browser, adding an extension to the user's browser, or waiting for the *W3DNA team to collaborate with other browser providers to include the *W3DNA script library by default. Notably, once a domain name is created, it cannot be altered, preventing the registration of similar domains with a mix of letters from different alphabets or punctuation marks.

Another advantage of *W3DNA domains is their compatibility with any language. Users can register domains using hieroglyphs, any language, symbols (such as the Latin alphabet, Chinese characters, or Arabic script), or emojis, without extension or length limitations. Traditionally, domain extensions have posed several issues for users, particularly making them susceptible to scams. Scammers can create similar domains with different extensions to deceive clients. Moreover, domain extensions often indicate affiliation with a specific organization, limiting users' creativity.

As mentioned earlier, with *W3DNA, users mint their NFT domain once on three chains (ETH, BSC, and Polygon), saving time and minimizing errors. The *W3DNA team plans to integrate more EVM chains in the future. Additionally, *W3DNA domains do not incur renewal fees; users pay only once and own the domain indefinitely.

Furthermore, investing in NFT domains is not subject to inflation like other investments. Users can purchase a *W3DNA domain for a set price and sell it to individuals or companies at their desired price.

Purchasing *W3DNA Domains

As the concept of Web3 is still relatively new, domain prices can start as low as $5. However, considering the current trajectory, these prices are expected to increase in the future. *W3DNA users can resell their domains by listing them on platforms like OpenSea or Raible. The cost of *W3DNA domains varies depending on their length. For instance, a domain with 30 characters costs $30, while a single-character domain is priced at $600k. *W3DNA offers special prices, selling these domains for $5 and $100k, respectively. As domain prices continue to rise, these figures are likely to become even more expensive in the future. Additionally, the absence of domain zones enhances the investment value.

Users can register domains associated with famous individuals or brands and resell them at a higher price, potentially making a profit. For example, many Instagram usernames have been resold for $100k as rising stars seek to acquire their domain names.

Success Stories in Domain Investment

In recent years, several investors have achieved success by investing in promising projects early on. For instance, two Australian friends, Alan Googlu and Fotios Tsiouklas, predicted the success of TikTok and purchased the domain 'titoks.com' for $2000 shortly after its launch. Bytedance, TikTok's parent company, later offered $145,000 for the domain, which the friends declined, ultimately reaping significant returns on their investment.

As demonstrated, domain investment can be highly lucrative. In August 2022, an investor sold the domain 'NFTs.com' for $15 million, marking the second-largest domain sale in history. Additionally, individuals have purchased Web3 domains at low prices and sold them for substantial profits. For instance, someone acquired the domain pjfi.eth for 0.12 ETH and sold it for 350 ETH, while another individual purchased bitcoinbeliever.crypto for 0.0095 ETH and sold it for 0.05 ETH. The value of these domains increases with each sale.

In Conclusion

As Web3 technology continues to expand across various industries, the demand for Web3-based domains is growing. Given their infancy, Web3 domains present a lucrative investment opportunity, allowing users to purchase domains at low prices and sell them at higher prices in the future. For example, registering