27

Nov '23

The Salvation of Domain Ownership May Lie in Tokenization, and One Firm Is Pressing Hard to Make This a Reality – Yahoo Finance

Domains, the gateway to the internet, have been a fairly lucrative source of money making for almost half a century. However, these digital assets have a big problem: their lack of liquidity, which is why one company is trying to tackle this problem with the help of tokenization.
First, let’s rewind a bit and look at the history of arguably the oldest digital asset. Domain names are the atlas of the internet and a large part of what made the World Wide Web so accessible. Imagine the hassle of trying to surf the net if you had to type in IP addresses instead of website names.
This inherent utility of domains led to a wave of hoarding as people tried to cash in on this digital gold rush. But unlike other gold rushes, this one didn’t completely die down, because as the internet grew in size, value, and utility, so did the value of domains.
Now, with the advent of a new digital age, marked by the arrival of the third iteration of the internet, Web3, one of the predominant issues with domains may soon be resolved.
“Domains are a unique asset because they have a low carry cost,” Shayan Rostam, the chief commercial officer at D3, told CoinDesk during the recent Korea Blockchain Week. D3 is a firm founded by domain industry veterans that wants to modernize the domain market for web3.
Rostam, who has spent most of his career in the domain industry, explains that it may cost only $20 or so to hold a domain year-over-year, but the problem with holding these web addresses is that they remain illiquid until someone makes an offer.
In the coming years, there will be a massive transfer of property and assets from one generation to the next. With millennials and Gen Z set to inherit trillions of dollars worth of assets, there are bound to be a few domain names in that asset mix.
Unlike other assets, there’s no tool to get liquidity from domains, even though they have a low carry cost, unlike real estate, and may be worth millions. This is something D3 is looking to solve via tokenization.
Before the era of search engines and the advent of search engine optimization, where people tried and optimize their websites to be better poised on search engine queries, people would simply add a .com to whatever they were looking for.
This spawned a gold rush for so-called premium domains, which are simple words that have a .com and the end of them. Think: wine.com, or cheapcarinsurance.com.
This led to speculators grabbing these words and combinations, before bigger businesses could and then putting ads on that page. These came to be known as ‘parking pages’.
“People registered longtail domains like cheapcarinsurance.com, paying around $20 a year. As long as they made more than $20 in revenue, they kept renewing the domain," Rostam said.
Fred Hsu, D3’s CEO, who owns a patent on a form of optimization for these parking pages, explained that the leasing process for domains was slow and cumbersome, which is why many preferred putting up the parking pages for monetization. Auctions are also an option, but the process isn’t too different from auctioning off a horse or a painting, as this process hasn’t changed since the last century.
"Domain auctions are like traditional auctions, with paddles and excitement. But it's still an analog process for digital assets," Hsu, who’s been in the domain industry since the 1990s, said. "You could lease domain names, but it's not a smooth process. There are issues with ownership and control."
Through tokenization, owners of these domains would be able to sell off interest in the property, similar to tokenization of other real-world assets like real estate or rare liquor, building liquidity from something that otherwise just sits there.
For what it's worth, cheapcarinsurance.com’s cousin, carinsurance.com, sold for $49.7 million in 2010. At the same time, a study found that there are 137 million .com domains registered, with a third in use, a third unused, and the remaining third for speculative purposes.
For example, beer.com is a parking page, while wine.com is an active e-commerce platform.
Certainly, D3 isn’t the first company to meld web3 and domain names. If you hop on to X (formerly known as Twitter), you will witness a plethora of crypto supporters with .eth domain attached to their profile. But the problem is, these aren’t real domain names. Type it into your browser and see what happens.
What makes a domain name real is when it's registered with ICANN, or the Internet Corporation for Assigned Names and Numbers, the organization responsible for coordinating the global domain name system.
They are the “United Nations of the web,” Rostam explains.
You need to work with them to make the domain names real, and this is why D3 is also focussing on ICANN registration. The firm plans to register new crypto-themed top-level domains during ICANN's next registration window, which may open next year.
And if D3’s plan for tokenization and registration works out, then you may soon see an actual .eth domain, which could make a lot of money for many, many years.
He sticks to these four indicators regardless of his strategy. His versatile approach has allowed him to remain profitable in different markets.
Rather than give shelter in a stormy season, the largest dividend ETFs have been left behind by a tech-obsessed market whose biggest proxies have surged.
Toyota's chairman, who's long resisted EV hype despite pressure, is feeling vindicated, with hybrid sales surging this year.
The $7.6 trillion that is coming due in the coming year represents 31% of the outstanding total, according to Apollo's chief economist.
One of Russia's most lucrative oil trade routes since the imposition of Western sanctions over the Ukraine conflict faces a major challenge because of the drawbacks of payment in currency other than dollars, with no short-term solution in sight. For decades, the U.S. dollar has been the currency of international oil trade and efforts to find alternatives have been thwarted by the difficulties of conversion, as well as political obstacles. The problems flared when India – which has become Russia's biggest buyer of seaborne oil since European customers retreated – insisted in July on paying in rupees and the trading activity nearly fell apart, according to three sources familiar with the matter.
Bull market or bear market? Or a trend-less market as seen for weeks until news late last month that political leaders on both sides of the U.S. chambers of Congress reached a deal to raise the debt ceiling? Regardless of what stage of the market cycle we're in, some folks never tire of searching for cheap stocks to buy.
An increasing pressure, from both social and political directions, has combined to boost clean and renewable energy providers, including residential scale solar installation providers. Residential solar offers several benefits to the customer, including grid-independent home power and an ability to sell electricity back to the utility provider. Yet, the residential solar business has faced strong headwinds in the last year or more, due to high interest rates increasing the cost of financing the
Top strategists and money managers share investment ideas and themes to consider for 2024.
The latest reading of the Fed's preferred inflation measure will serve as the main highlight for investors in the week ahead.
BERLIN (Reuters) -Volkswagen's 10 billion euro ($10.9 billion) savings programme will include staff reductions, managers told staff on Monday as brand chief Thomas Schaefer warned that high costs and low productivity were making its cars uncompetitive. The German carmaker is in the midst of negotiations with its works council over a cost-cutting scheme at its VW brand, the first step in a group-wide drive to boost efficiency in the transition to electric cars. "With many of our pre-existing structures, processes and high costs, we are no longer competitive as the Volkswagen brand," Schaefer told a staff meeting at the carmaker's headquarters in Wolfsburg, according to a post on the company's intranet site and seen by Reuters.
While taxes are inevitable for most Americans, the government doesn't require those with sufficiently low incomes to file. However, choosing not to file usually means forfeiting profitable tax breaks and other financial advantages. Plus, you'll be penalized if it turns … Continue reading → The post How Much Do You Have to Make to File Taxes? appeared first on SmartAsset Blog.
(Bloomberg) — The selloff that’s ripped through green stocks looks set to continue into 2024, bringing a fourth consecutive year of losses, according to Bloomberg’s latest Markets Live Pulse survey.Most Read from BloombergRussia Downs Drones Over Moscow in Ukrainian Retaliatory StrikeChina Says Multiple Pathogens Are Behind Spike in Respiratory IllnessesSodium in Batteries: Shift May Herald Another ShakeupMusk, Netanyahu Visit Massacre Site Amid Antisemitism FurorIsrael, Hamas Look to Extend Tr
A market veteran broke down how investors should be looking at the bond market as they head into the end of 2023.
(Bloomberg) — Elon Musk will meet Israeli Prime Minister Benjamin Netanyahu, war cabinet minister Benny Gantz and President Isaac Herzog, as the world’s richest man faces growing furor over antisemitic content on his social media platform X. Most Read from BloombergRussia Downs Drones Over Moscow in Ukrainian Retaliatory StrikeChina Says Multiple Pathogens Are Behind Spike in Respiratory IllnessesSodium in Batteries: Shift May Herald Another ShakeupIsrael, Hamas Look to Extend Truce After More
Work-life balance and pay have improved for many American workers, yet they are more dissatisfied than they were in the thick of the pandemic.
The post-Thanksgiving earnings calendar is filled with reports in the software sector, including Dow Jones stock Salesforce.com.
Consumers are shifting away from store-branded credit cards, which have been lucrative for retailers.
I’m 77 years old and I requested my 401(k) fund administrator to prepare my RMD. I was told I do not have to withdraw my money if I am still employed. Please confirm if this in fact an IRS rule or that of the fund management company? -Bea That is correct, Bea. If you are […] The post Ask an Advisor: I’m 77 and Still Working. Is it True That I Don’t Have to Take RMDs? appeared first on SmartReads by SmartAsset.
While retirees may be chagrined to discover that taxes don’t end when they leave the workforce, an unseen threat looms behind the U.S. tax code. The Social Security tax torpedo is as destructive as it sounds, blowing up the budgets of unsuspecting retired folks eagerly awaiting their first Social Security check. Having a clear understanding […] The post How to Avoid the Social Security Tax Torpedo appeared first on SmartReads by SmartAsset.
(Reuters) -U.S. stock index futures slipped on Monday, ahead of a key inflation reading and commentary from Federal Reserve policymakers later in the week, while retailers were in focus as holiday shopping picked up steam with Cyber Monday deals. Wall Street ended the Thanksgiving week on a positive note, with the major indexes notching up their fourth consecutive week of gains on growing optimism that the Federal Reserve was likely done hiking interest rates. "Usually after Thanksgiving, you tend to get some profit taking because the volumes are low," said Axel Rudolph, senior market analyst at IG Group.

source

Share:

Facebook
Twitter
LinkedIn
Joker
Joker

Joker has been buying and selling domains since the late 90's. He has worked with many portfolios and investors over the past decade as well.

Leave a Reply

Your email address will not be published. Required fields are marked *