From Million Dollar .Com To Web3 To Onchain

A domain name is more than just an address on the internet—it’s a digital identity, a brand, and potentially a valuable asset. The journey of domain names began in the 1980s with the introduction of top-level domains (TLDs) like .com, .org, and .net. As the internet grew exponentially in the 1990s and 2000s, savvy entrepreneurs recognized the potential value in owning premium domain names. This led to a gold rush of sorts, with some domains changing hands for millions of dollars.

Consider the case of a small business owner in the early 2000s who had the foresight to register a generic domain like “books.com” or “travel.com”. What might have cost them less than $100 to register could potentially be worth millions today. On the flip side, large corporations have often found themselves paying hefty sums to acquire domain names crucial to their branding efforts, or entering into costly litigation to resolve “cybersquatting” disputes.

As we moved into the 2010s, the domain name system expanded dramatically with the introduction of new generic top-level domains (gTLDs) like .shop, .app, and .blog. This opened up new possibilities for businesses and individuals to create more specific and memorable web addresses.

Now, as we enter the era of Web3, blockchain is revolutionizing the concept of domain ownership. Onchain domains on networks like Ethereum
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offer features traditional domains can’t match, such as resistance to censorship, built-in payment functionality, and true ownership without recurring fees.

Imagine a scenario where an artist can use their domain not just as a website address, but as a way to receive cryptocurrency payments directly, showcase their NFT
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portfolio, and even as a login credential for various Web3 applications. Or consider a town using a city-specific Web3 domain to create a community platform where residents can vote on local issues, access municipal services, and even participate in local cryptocurrency initiatives.

Selecting the right domain name is a pivotal factor in a company’s success, as it directly impacts branding, visibility, and customer trust. A well-chosen domain name enhances brand recognition by making it easier for customers to find and remember the business online. It acts as a digital storefront, reflecting the company’s identity and values. For instance, a domain name that is short, relevant, and easy to spell can significantly improve search engine optimization (SEO), leading to higher rankings in search results and increased web traffic​​. Additionally, a strategic domain choice can protect a brand from competitors and cyber squatters, ensuring that the company’s online presence remains secure and reputable.

The launch of nvivida.com has significantly impacted NVIDIA’s
SPDR Dow Jones Industrial Average ETF Trust
brand by reinforcing its position as a leader in the technology and AI sectors. This dedicated domain serves as a comprehensive hub for all things NVIDIA, offering a centralized platform for news, product information, and innovations. It enhances brand visibility and accessibility, providing a seamless user experience for customers, developers, and stakeholders. By consolidating its online presence under a memorable and distinct domain, NVIDIA strengthens its digital identity, fosters community engagement, and underscores its commitment to advancing cutting-edge technology. This strategic move not only boosts brand recognition but also aligns with NVIDIA’s vision of driving technological progress and innovation.

Whether you’re a business owner looking to establish your online presence, an investor seeking the next big opportunity, or simply an internet user curious about the technology behind the web addresses you use every day, understanding the evolution of domain names offers fascinating insights into the past, present, and future of the internet.

The Traditional .com Powerhouses

When it comes to high-value domains, .com addresses still reign supreme. For several decades now, “.com” has been the most expensive domain extension of all, but, as the internet enters a new epoch with the rise of blockchain technology, there’s reason to believe Web3 addresses could soon emerge as legitimate rivals.

At NamesCon 2024, Andrew Miller, Managing Director, Hilco Digital Assets, emphasized the transformative power of domain names, highlighting their essential role in the digital economy. He stated, “Domain names are not just digital addresses; they are the foundation of your online identity and business presence. In a rapidly evolving digital landscape, securing the right domain can significantly impact your brand’s visibility and success.”

Let’s start by looking at some of the most expensive domains ever purchased.

Cars.com – Driving the Competition

This top-level domain (TLD) was purchased by Gannett Co. in 2014 for a reported $872,000,000. While this astronomical figure seems a trifle excessive at a glance (to say the least), we need to put into context the size of the global automobile market, and the value it confers upon its owner. In fact, the new TLD didn’t take long for the new owners to maximize its potential and make it the biggest website for buying and selling cars in the USA. According to the Cars.com annual report, the business generated $689m in revenue in 2023 alone, perhaps justifying the extraordinary investment in the domain.

Biggest Sales Ever

Cars.com wasn’t the only TLD to change hands for tens or even hundreds of millions of dollars. Other top .com sales over the years include:

• Business.com – sold for $345 million in 2007
• LasVegas.com – sold for $90 million in 2005 (to be completed in 2040)
• CarInsurance.com – sold for $49.7 million in 2010
• Insurance.com – sold for $35.6 million in 2010
• VacationRentals.com – sold for $35 million in 2007

The Rise of City-Based Domains

The sale of LasVegas.com for $90 million symbolizes a new movement of city-specific domains. In truth, though, the idea of “city branding” long predates the Web3 or even the internet revolutions. From the “Big Apple” to Paris’s status as the world’s romance capital, to “Keep Austin Weird”, a city’s brand can have enormous real-world value that affects everything from investment to tourism.

Given Austin’s reputation for innovation, it was no surprise that it was the first major U.S. city to launch its own onchain domain name, .austin, in March 2024.

As Mark Duval, the CEO of the Greater Austin Asian Chamber of Commerce (GAACC) told me, “In March 2024, Austin proudly became the first major U.S. city to launch its own onchain domain name, .austin. This milestone signifies Austin’s commitment to embracing cutting-edge technology and solidifying our position as a leader in innovation. The .austin domain not only enhances our digital infrastructure but also empowers our local businesses, entrepreneurs, and community members by providing a secure, decentralized, and forward-thinking platform for digital identity and transactions. This initiative reflects our city’s dynamic spirit and dedication to fostering growth and opportunity in the digital age.”

As more cities adopt this approach, we may see a proliferation of localized Web3 domains, each representing a unique digital ecosystem tied to a specific urban center. This development could have interesting implications for local businesses, community organizations, and city branding efforts.

The Onchain Revolution

Blockchain-based domains provide a range of unique benefits, such as full ownership rights, support for crypto payments, and access to onchain applications. ​​Did you know there are 17,300 onchain domains right now?

Matt Gould, CEO of Unstoppable Domains (and, full disclosure, my employer) has been vocal about the transformative value of onchain domains. He emphasizes that moving the domain industry on-chain offers unparalleled benefits in terms of security, ownership, and user control. According to Gould, “We want to bring the entire domain industry on-chain.”

This perspective highlights the shift from traditional to onchain domains, where secure digital identities are a crucial component, and which provide secure, verifiable ownership and facilitate easier management of digital assets. Gould’s vision for onchain domains includes creating a robust user-owned digital identity platform that enhances privacy and control over personal data, making these identities portable

One notable sale in this onchain space was Wallet.crypto, which sold for $250,000. The increasing popularity of onchain domains like .eth, .nft, and .crypto is driven by their additional benefits. These domains give holders full ownership, support crypto payments and allow users to access partner applications, send messages to other domain holders, and more.

Onchain domains have seen numerous six-figure sales, including mining.bitcoin, shop.x, trade.crypto, and coin.crypto. As the perceived value of onchain domains continues to grow, it’s possible that we may soon see a seven-figure sale in this space.

Emerging Trends in .ai Domain Investment

As the internet landscape shifts, new opportunities are emerging in domain investment. The rise of artificial intelligence has, unsurprisingly, sparked interest in AI-related domains. In 2023, AI.com reportedly sold for $11 million, making it the year’s biggest domain purchase. While the buyer’s identity remains shrouded in mystery, the sale highlights the growing value placed on AI-centric web addresses.

Similarly, .ai domains are gaining traction. The sale of You.ai for $700,000 in 2023 marked the most expensive .ai domain sale to date. As AI continues to dominate headlines and shape industries, we can expect many more high-value transactions in the years to come.

At NamesCon 2024, Christian Jaeger, CEO of CloudFest, highlighted the enduring significance and evolving power of domain names in the digital age. He remarked, “Domain names are the cornerstone of your digital identity. They are more than just web addresses; they are the gateway to establishing a trusted and recognizable online presence.” This statement underscores the essential role domain names play in shaping an organization’s digital footprint and their importance in a rapidly changing internet landscape​

Final Thoughts

Interestingly, .com domain prices have fallen over the last decade, with the big names already bought or parked, and few valuable options hitting the market. This has presented a great opportunity for new TLDs to emerge, especially blockchain addresses and onchain domains that offer additional features and benefits. We should not be surprised when blockchain addresses start selling for millions and climbing into the top 10 most expensive domains ever purchased.

What’s more, this may happen sooner than even the most ardent champions of Web3 domains expected. Recent events – very recent indeed, in fact – provide us with a fascinating illustration of this inherent value. Since I started writing this article, it was revealed that the domain registrar and website builder SquareSpace has been hacked. The impact to the hundreds of businesses affected was enormous. Many businesses were completely shut down while they awaited a solution. Stories like these are as old as the web itself; they occur even though (one might say, because) the hacked sites are specialist domain registrars.

While we should be cautious about claiming Web3 domains are “unhackable”, they are inherently far more secure than anything that’s come before. That’s hardly surprising given that Web3 and blockchain have their origins in cryptography; the enhanced security of onchain domains is not a matter of new, additional improvements, but are integral to their very design.

An onchain domain name has special superpowers to protect against future hacker attacks. Once a domain is tokenized and onchain, any changes to DNS records or domain transfers will require a wallet signature. This will make those onchain domains more secure, functional, and better protected against attacks than ever before. So the next time you see domains changing hands for “crazy money”, this is much more likely to represent exceptional value for money.