Recently, I delved into an interesting phenomenon—Web3 domains are changing the way we interact with blockchain, but many people still don’t fully understand what’s really going on.

Traditional domain name systems are like phone books, matching websites to IP addresses. But in the blockchain world, it’s completely different. Your wallet address is a string of 42 hexadecimal characters, which is impossible to remember. That’s why Web3 domain names are so crucial—they convert these complex addresses into simple, memorable names like bob.eth or alex.eth.

I’ve noticed that the logic behind this shift is quite clear. ENS (Ethereum Name Service) was created to solve this problem. It’s essentially a system built on Ethereum smart contracts that allows users to create unique, easy-to-remember usernames. This is not just a technological innovation but a necessary step to bring blockchain to the masses.

ENS operates through three core components. First is the registry, a single smart contract that records ownership of all domain names and subdomains. Next is the registrar, responsible for granting domain names to users according to rules (such as payment). Finally, there’s the resolver, which maintains the mapping from names to addresses. In 2017, the ENS team launched a Vickrey auction system, and by 2019, it was upgraded to a permanent registrar. Currently, it uses an annual leasing model, with each .eth name costing $5 per year.

Interestingly, blockchain domain names can point not only to wallet addresses but also to smart contracts, metadata, or even transactions. This opens up many application possibilities. Domain owners can create subdomains and assign additional data, just like traditional domains. Some people even lease or transfer these Web3 domains, allowing others to build brand value on them.

The registration process is quite straightforward. Connect MetaMask or another Ethereum wallet, visit app.ens.domains, search for your desired name, select the registration duration, and confirm the transaction. But here’s an interesting detail—after registering a name, you need to wait a period of time before the final registration is completed, to prevent sniping.

I think this represents an important direction for Web3. When blockchain interactions become as simple as using PayPal, mass adoption will truly arrive. Although only a few hundred thousand blockchain domain names have been registered so far, considering there are millions of blockchain users worldwide, the growth potential of this market is huge. Traditional domain investors and blockchain entrepreneurs are starting to see this opportunity.

If you’re also considering entering the Web3 ecosystem, owning a Web3 domain is a good starting point. Gate has many related assets to follow, including various projects supporting this ecosystem.