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What Is a Web3 Domain? A Beginner’s Guide

Sep 08, 2025 • 8 min read
What Is a Web3 Domain? A Beginner’s Guide

Learn how Web3 domains like alex.sol simplify crypto and shape digital identity.

The internet has undergone significant shifts - from static Web1 pages to the social and mobile Web2 and now to Web3, a decentralized internet built on blockchains. At the heart of this new phase are Web3 domains.

A Web3 domain is more than a shortcut to a wallet - it’s a blockchain-native identity layer. With a name like yourname.sol, you can send and receive crypto, host decentralized content and own your digital identity outright. In this guide, we’ll cover what Web3 domains are, how Web3 itself works, the technologies behind it, why it matters and the benefits of owning a Web3 domain.

What Is a Web3 Domain?

A Web3 domain is a human-readable blockchain address that can replace long wallet strings like 1Dy3c...9f8 with a name such as alex.sol. But it goes beyond payments: Web3 domains can point to decentralized websites, user profiles, metadata or other on-chain resources.

Unlike traditional Web2 domains, which are controlled by registrars and ICANN, Web3 domain names are recorded directly on blockchains. That makes them:

  • Decentralized - recorded on a blockchain rather than managed by ICANN, making them resistant to censorship or seizure
  • User-controlled - tied to your wallet, meaning only you can update or transfer them. On Solana, .sol names are currently one-time purchases, though other providers may use renewals
  • Versatile - usable across the decentralized web for payments, identity, applications, and even hosting content

This shift moves domains from being just an “address book for websites” to becoming a digital identity system for the decentralized web.

How Does Web3 Work?

Web3 is built on decentralization and user control. Instead of logging in with an email and password, you connect with a wallet secured by cryptographic keys:

  • Your private key signs transactions and proves you own your assets
  • Your public key lets others interact with you - whether to send tokens, verify identity or connect with a smart contract

This design removes intermediaries. You hold the keys, you hold the authority.

Blockchains then process transactions in a permissionless way. Anyone can deploy applications or send assets without needing approval. This creates a transparent, trust-minimized system where users, not platforms, define ownership and identity.

What Are the Technologies Behind Web3?

Web3 is made possible by multiple layers of technology, each addressing a different need:

Blockchain Networks

Ethereum, Solana and others act as open ledgers that record ownership, verify transactions and execute code without central control (Ethereum.org).

Cryptography and Keys

Public/private key pairs secure accounts. Private keys let users sign actions, while public keys provide a way for others to interact. This system removes reliance on passwords and platforms.

Smart Contracts and dApps

Smart contracts are programs stored on blockchains. They run exchanges, NFT markets and governance systems, allowing global participation without middlemen.

Self-Sovereign Identity and Storage

Self-sovereign identity gives users control of credentials. Decentralized storage systems like IPFS or Arweave ensure that information is permanent and censorship-resistant.

Domain Systems

Services like the Solana Name Service (SNS) bring human readability. .sol names are stored as Program Derived Accounts (PDAs) and can be wrapped into NFTs if needed. They connect names to wallets or data, improving usability.

Together, these layers form the infrastructure of Web3, combining trust, security and accessibility.

What Is the Importance of Web3?

Web3 is not just about new tools - it changes how the internet is governed and who benefits from it.

Shifting Power to Users

In Web2, companies own and monetize data. In Web3, individuals hold keys and decide how their information and assets are used.

Open Participation

Anyone can create or access Web3 applications. This lowers barriers for innovation and expands global access.

Resilience Against Control

Because blockchains are decentralized, it is much harder for governments or corporations to block transactions or shut down services.

A Connected Digital Layer

Web3 assets and identities are portable across platforms, creating an internet where your profile and resources move with you, not with the app you use.

Difference Between Web3 and Web2

  • Web2 Domains
    • Managed by registrars and ICANN
    • Require annual renewals
    • Can be suspended or revoked
  • Web3 Domains
    • Stored directly on blockchains
    • User-controlled and tied to wallets (no renewals for .sol)
    • Resistant to censorship and transferable across apps

Simply put: Web2 domains give you visibility, Web3 domains give you control.

What Are the Benefits of Owning a Web3 Domain?

A .sol or other Web3 domain offers practical and forward-looking advantages:

Easier Transactions

Replace long wallet addresses with simple names, reducing errors and making transfers user-friendly.

A Portable Identity

Your domain works across wallets, apps and communities, acting as your consistent tag in Web3.

Expanded Utility

Domains can link to websites, logins, profiles and dApps - becoming the backbone of a unified identity.

Market Value

On Solana, domains can be wrapped into NFTs, opening up possibilities for trading or collecting rare names.

What Is the Next Big Thing in Web3?

While it’s impossible (and risky) to predict markets, we can see where Web3 domains are headed:

  • Growing integrations: .sol domains are already supported across 160+ wallets and apps, with more joining regularly
  • Unified identity systems: initiatives like Sol ID are emerging to make your domain the center of your on-chain profile
  • Expanded use cases: domains are moving beyond payments—into logins, event check-ins, and even real-world verifications

The next chapter of Web3 domains is about becoming the universal digital passport for the decentralized internet.

Summary

A Web3 domain is more than a wallet alias - it’s your personalized gateway into Web3. With it, you can transact easily, control your identity, and explore the decentralized internet on your own terms.

Through the Solana Name Service, .sol domains offer permanent ownership, wide ecosystem support and a growing role in digital identity. Whether you’re a crypto beginner or a seasoned builder, buying a Web3 domain is one of the easiest ways to step into the future of the internet. Get yours now at https://www.sns.id/

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