Blockchain domain names, domains that are stored on blockchain or cryptocurrency exchanges, are part of a growing, unregulated, and decentralized internet. Right now, blockchain domains are used mostly by cryptocurrency users, but they are growing in popularity—the Ethereum name service reported over 2.2 million .eth domain name registrations in 2022. At the same time, crypto scams are also exploding, reaching a total of $3.5 billion in losses in 2022.

There have been past attempts to create alternative domain name resolution systems outside the regular Domain Name System (DNS—administered by ICANN), though none of these have achieved real traction. A large hurdle has been, and still is, the need for a user to use a crypto browser or special plug-in to an existing browser to access the blockchain. So, while this isn’t entirely “new,” the use and adoption of blockchain domains could be spurred by increased acceptance of cryptocurrencies among users. At the very least, blockchain domains can be used to further scams of all types, and their unique ability to be both “brand named” and the end-point for a transaction make them well worth focusing on as the market expands.

Traditional Internet and DNS

The architecture of the traditional internet requires users to have a unique internet address to enable users to find each other. The unique addresses are coordinated with the domain name system (DNS) to create domain names—so that the internet…