Web 3.0 is the new global trend that will impact modern society and the way people relate to the internet. It refers to the use of internet through decentralized networks, which are nothing more than software or specific configurations in routers, in order to increase the levels of autonomy of society in relation to companies and governments. Thus, Web 3.0 proposes that there is no centralized control and yet everyone would be able to trust it.
In Web 3.0, decentralized applications (“dapps”) also emerge, based on blockchain technology, issuing access tokens with an open code to users, and are characterized as a fast, affordable, and efficient way to process large volume of data. This means that nobody can control the existent data or limit the access. In addition, money is inherent to the network, so there is no dependence on financial institutions, since payment becomes global and instantaneous.
The new web is mainly ruled by the following concepts:
- Decentralization: independence from banks, government agencies or private technology companies of;
- Privacy: avoidance of the exposure of personal data or target advertising;
- Virtualization: strengthening of digital experiences.
Through dapps it is also possible to register decentralized domains, which are considered non-fungible tokens (NFT) and work by converting the long addresses of blockchain technology into easy and recognizable characters. There are several decentralized domain extensions available today, and Ethereum – with Ethereum Name Service (ENS) – has the fastest growth.
In summary, ENS works by storing the records of all domains and subdomains, as well as their owner’s information. ENS makes transactions more secure, private, and resistant to censorship than domains registered through the Domain Name System (DNS).
Advantages of a decentralized domain
The traditional DNS only allows you to rent a domain through a registrar, who intermediates the registration in your name for the contract length. If the owner wants to renew the domain after such period, new fees will be charged or the domain will be released.
On the other hand, blockchain domains are purchased and remain in the owner’s property until they decide to sell it. Since the entire blockchain system is decentralized, no organization (such as ICANN or local registrars – e.g. Registro.br) has control over a domain once it has been sold, which is why it cannot be locked down, for example. A website provided with a blockchain domain also exists on the InterPlanetary File System (IPFS), which is a decentralized alternative to the World Wide Web.
The swift spread of Web 3.0 and the possibility of registering such domains will add value to shorter domain names, as happened with the domain “beer.eth”, registered by Budweiser for US$ 122.000,00. Thus, it is recommended that companies register the decentralized domains corresponding to their brands as soon as possible, to ensure the ownership over the asset and avoid its overvaluation.
Kasznar Leonardos’ Digital Law team is available for any legal advice that may be necessary and to assist in the registration of these domains at email@example.com.