Nov '23

What Is a Tezos Domain and Do I Need One? – Ledger

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Decentralized domain names have been gaining ground in the online world. From the early days of the internet, most companies have used the common “.com” extension. But how does that work? Well, each device connected to the Internet has a distinct IP address. This is what web browsers use for loading online resources. However, IP addresses are long numeric strings such as and so the Domain Name System (DNS) was created to translate Internet Protocol (IP) Addresses into easy-to-remember domain names such as Ledger.com. 
Web3 domains are similar to traditional domains in that they help users more user-friendly ways of identifying a specific blockchain address. Domain names make crypto transactions simpler by replacing wallet addresses with easy-to-read names such as Ledger.eth or Ledger.tez. Plus, these form a part of your digital identity.
The project offering this service for the Tezos blockchain is Tezos Domains. These web3 domains are your ticket to a human-readable address for the network. But what are Tezos domains exactly and, what are they for?
Tezos domains are human-readable identifiers that represent blockchain addresses on the Tezos network. In short, they make your long and complicated Tezos address into something readable like Ledger.tez. They are a great way to make sending and receiving Tezos easier, especially if you are not familiar with blockchain addresses. 
The Tezos domain name system is a decentralized, open-source platform that allows you to register and manage your .tez domain names.
In short, yes, they are FA2-compliant Non Fungible Tokens (NFTs) on the Tezos blockchain. Since Tez domains NFTs, each domain is unique – only one person can own each domain.
Your domain registration allows you to connect data with your domain such as your Tezos address, avatar, nickname, e-mail, website, and physical address. 
Tezos Domains also allow you to create subdomains of the original domain. For example, a subdomain of Ledger.tez might be ‘academy.ledger.tez’. Using subdomains allows users to organize content hierarchies, team delegation, and segregate your accounts. Or, they can be sold to other users.
Tezos Domains also supports delegation (sub-delegation), This process allows Tezos holders to delegate their staking rights to another person. This means they can receive rewards, without running their own node. To learn more, check you the full article on what crypto staking is.
The cost depends on the length of each domain, and you are charged on an annual basis. Five-letter domains and longer cost 1XTZ, four-letter domains cost 25XTZ, and three-letter domains cost 100XTZ per year. However, Tezos domains use an initial action period. This auction period is currently a week long and ensures fairness by preventing people from gaining an advantage by automatically registering multiple domains. If there are no bids during an auction period, the domain is open to direct registration.
After the auction, successful bidders receive the name. Of course, more popular domains may result in higher bids. Names of people and companies tend to be top-sellers. However, these higher prices only apply to the first year, with renewals returning to standard pricing.
The main difference between the two is that .tez domains are based on the Tezos blockchain, while .eth domains are based on the Ethereum blockchain.
The price structure is also different on one vs the other. While both have tiered pricing depending on the length of the name. With Tezos, there is an initial auction period before anyone can finally purchase a Tezos domain name. Ethereum on the other hand, works on a first-come, first-served basis. Another difference is the character sets that can be used in the names. Using the Ethereum Name Service (ENS) there is no limitation on length or symbols, even allowing emojis. Whereas Tezos DNS are limited to Latin characters, numbers and hyphens only, which supports consistency and another layer of security.
If you want to buy a Tezos domain, the first step is to create a Tezos account on your Ledger device. This will create the address where your domain will be stored. To interact with Tezos Domains site securely, you will need to connect this account to a third-party wallet such as Temple or Kukai. To get started, check out the support article on how to manage Tezos NFTs with your Ledger.
Once you have your Tezos wallet set up, you’ll also need some XTZ, the cryptocurrency that powers the Tezos Network. Luckily, you can do so from the comfort of your Ledger Live app. With the Buy Feature, you can buy Tezos and protect it with your Ledger directly. 
Now you have your XTZ and your tezos account set up to use with a third-party wallet, you’re ready to buy a Tezos Domain. Here’s how to do it.
Registering a Tez name like this ensures your Ledger device can protect it – just like your other NFTs. Plus, you can also visualize Tez domains along with all of your other Tezos NFTs through the Discover section of your Ledger Live app. Here the Objkt app lets you visualise and manage all Tezos NFTs, not just your domains.
To sell your domain name, you will need to choose a Tezos NFT marketplace that supports such NFTs. Some examples of these include the Tezos Domain Registry, Objkt and Rarible. You then connect to the marketplace securely, using your Ledger and a third-party wallet, as mentioned above. If it’s your first time selling, make sure you check out the Ledger Academy guide on how to segregate your crypto assets. Selling NFTs means setting approvals, and you only want to do that with confidence.
Next you can list your NFT for a specific price. Once you complete your listing, buyers will be able to see and purchase your domain. If you manage to make a sale using this method, you can rest easy knowing your funds are protected by your Ledger Device directly. 
Tezos domains are a useful tool in the Tezos Ecosystem as they provide a simple way to access smart contracts and applications, while also ensuring security and decentralization.
With new users joining the web3 ecosystem each day, User Experience has become increasingly important. While blockchain addresses are still long and complicated, new users are easily alienated. Web3 domains, such as Tezos Domains or ENS, are integral in order to onboard everyday users. This is even evident today, as world-famous brands have paraded their ENS domains on social media platforms. A good example of this includes Budweiser with Beer.eth. As a result, web3 domains are likely here to stay. That’s why protecting them is just as important as protecting your cryptocurrencies and other stores of value.
Content creator and copywriter. Mum to a toddler who is already creating and collecting NFTs and then storing them on her own Ledger Nano! Ex-teacher still putting education first and writing about all things crypto because education is key to making the space safe!
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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.

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