Web3 Disruption and the Domain Name System: Understanding the Trends of Blockchain Domain Names and the Policy Implications

Abstract

Blockchain, or Web3 technology has the potential to disrupt the everyday use of the Internet. The polarised discussion around blockchain technology is notoriously difficult to navigate between the opposing narratives of blockchain evangelists and skeptics. This article focuses on blockchain domain names, a rapidly growing trend using blockchain technology that is currently non-interoperable with the Domain Name System (DNS) and therefore, out of scope of traditional Internet governance. Alternative DNS roots are not new and have previously not become popular due to the lack of supporting browsers. On one view, blockchain domain names are nothing more than another alternative root, insignificant and undeserving of attention. Other narratives regard them as offering an exciting prospect of a decentralised and novel way for managing online naming and addressing. This study explores the burgeoning growth, assesses the challenges of blockchain domain names and provides five recommendations to address them. Although many in traditional Internet communities may be hostile or ignore the blockchain alternative for naming and addressing, we argue that a pragmatic response should be adopted. Even if it is not clear that blockchain domain names solve any problems not currently solved by the DNS, the increase in registrations continues to rise and diverse Internet communities must keep ahead of the trends to understand them and integrate policy implications. Furthermore, the technologies will continue to advance and due to the decentralised nature of the blockchain, developments or changes can be more rapidly implemented than within the DNS.