The Future of Web3 Domains: From Short-Term Speculation to Long-Term Value

Web3 domains have performed well against the backdrop of an overall downturn in the NFT market, becoming a major highlight recently. This reflects the immense potential of Web3 domains as a cornerstone for decentralized identity verification (DID) and the strong demand from users for Web3 identity cards.

Web3 domains have many innovations compared to traditional domains:

• The mapping object changes from the server to the wallet address
• The carrier has shifted from centralized records to NFTs
• The parsing method has shifted from centralized to decentralized.
• The ecosystem has shifted from closed to open.

Mainstream Web3 domain projects such as ENS and Unstoppable Domains have developed a large user base. Their functionalities include:

1. Collect various address and account information from users
2. Aggregate user data
3. Access supported dApps
4. As a nickname for social media accounts

Web3 domain names combine human readability and decentralization, but challenges remain in user privacy protection.

The future development trends of Web3 domain names include:

1. Multi-chain deployment and an increase in multi-category suffixes.
2. Deep cooperation with DID applications such as social graphs and reputation platforms
3. Practical value is greater than short-term speculation
4. Competitive Landscape and Homogenization of Public Chain Competition

In the long run, Web3 domains will become a unified identity credential and account for users in the Web3 world, truly realizing their value as a decentralized identity infrastructure.