The rapid development of Web3 domain names has become a new highlight in the NFT market

Web3 domain names have performed outstandingly in the second half of this year, becoming a major growth point in the NFT market. Taking ENS as an example, the trading volume has increased by 22.48% month-on-month over the past three months, with the total number of domain registrations exceeding 2.6 million. In addition to ENS, the domain registration and user numbers for projects such as SPACE ID and Unstoppable Domains have also grown rapidly.

Web3 domain names have become standard for public chains, with nearly 30 public chains currently having deployed domain projects. New public chains like Aptos and Sui have also launched native domain services. Compared to traditional domain names, Web3 domain names have essential differences in mapping objects, carriers, resolution methods, and ecosystems.

The main functions of Web3 domains include:

1. Collection address, user account information, etc.
2. Aggregate user data
3. Access supported dApps
4. As a nickname for social media accounts

Web3 domain names combine human readability with decentralization features, but there are certain issues with user privacy protection. Currently, the mainstream Web3 domain projects include Unstoppable Domains, ENS, Handshake, .bit, SPACE ID, and others.

Future Development Trends of Web3 Domains:

1. Multi-chain deployment and an increase in multiple category suffixes
2. Deep cooperation with DID applications such as social graphs and reputation platforms.
3. Use more than hype
4. The competition landscape of domain names converges with that of public blockchains.

Overall, Web3 domain names are expected to become a unified account and identity credential for users in the Web3 world as the cornerstone of decentralized identity, with vast development potential.