EnCirca and DOMA have announced a groundbreaking service that integrates traditional domain names with blockchain technology, allowing for domain tokenization as a form of Web3 identity. This innovative service maintains compatibility with existing DNS and DNSSEC, ensuring a smooth transition into decentralized digital environments.
Traditionally, domain names serve as identifiers on the internet. The new service transforms these names into verifiable digital assets, enabling domain owners to utilize their existing domains within Web3 applications without disrupting their core DNS functionalities. With this approach, domain ownership becomes a key component of digital identity in decentralized applications.
EnCirca reports that their tokenization service can support approximately 97% of the global domain market, covering nearly all major generic top-level domains (gTLDs) and new top-level domains (TLDs). Users can experiment with tokenization at minimal cost, akin to the price of a cup of coffee, making it accessible for both seasoned and novice users.
The process of domain tokenization effectively converts a domain into a portable, cryptographically secured identifier. This identifier is used across decentralized applications, eliminating the need for cumbersome platform accounts. Users can manage their digital identities through cryptographic keys, linking their access to various Web3 services, including decentralized finance (DeFi) applications, directly to their domain names.
Importantly, this model does not necessitate prior experience with cryptocurrency. Users can connect a self-custodied wallet or request a dedicated wallet from EnCirca, simplifying onboarding for those unfamiliar with blockchain technology.
DOMA has focused on developing infrastructure that aligns with established DNS and ICANN standards, thus avoiding pitfalls associated with alternative blockchain naming systems. Their technology ensures compatibility with the authoritative DNS root, supports DNSSEC verification, and mitigates namespace conflicts. This partnership does not seek to replace the existing DNS but instead layers a standardized blockchain framework for identity and ownership.
Fred Hsu, co-founder and CEO of DOMA, emphasized the importance of this integration, stating, “EnCirca has always been a pioneer in DNS innovation. By integrating with DOMA, they”re enabling secure, standards-based blockchain capabilities for their customers.”
The collaboration between EnCirca and DOMA marks a significant step towards making domain tokenization a viable entry point for users transitioning from Web2 to Web3. By enabling domains to function as both digital assets and identifiers, this initiative fosters a gradual migration while preserving connections to the traditional DNS framework, potentially paving the way for broader adoption of decentralized technologies.
For those interested in learning more about the fundamentals of decentralized finance, additional resources and insights are available in our guides for both beginners and professionals, keeping you updated on the latest developments in the cryptocurrency and blockchain landscape.
