The world’s largest domain registrar GoDaddy releases a report on Web3 identities and the risks and opportunities related to it for their clients.
According to the blog post, GoDaddy believes that web3 identities such as ENS domain names like GCD.eth are rising in popularity right now.
The platform has seen a significant increase in the amount of identities like this being obtained and used. But along with the rise in blockchain technology, there will be both an increase in opportunities and risks for the brands, GoDaddy stated.
These Web3 identities called blockchain domains or domain NFTs, aren’t used in the way that standard website names are handled. Names with .eth, etc are being utilized to make naming blockchain wallets more simple.
Some users are now linking their wallet with their .ETH or .CRYPTO wallet name, rather than using a bigger name. On social networking platforms like Twitter, there is also a rise in its use as a nickname.
The risk is that when the next batch of ICANN-approved TLDs launches, the clients wouldn’t know how long these blockchain domain names will last or whether there will be any name overlaps.
According to GoDaddy, there is a risk of brand abuse with the debut of any namespace. The platform encourages brand owners to understand the risks and rewards of operating in this Web3 space, as well as to take action when necessary.
Since GoDaddy does not support unregulated name spaces, and because these technological advances do not yet provide dependable or effective conflict processes, the platform advises that defensive registrations are the best brand protection option.
Essentially, the platform is informing brands that they don’t have much choice but to pay for their domains, therefore the best plan is to register them first before someone else does, thus a defensive strategy.
The platform concluded the blog post by saying that they help if their clients want to learn more about these Web3 identities or if they need help obtaining them, such as .ETH or .CRYPTO.
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