Web3-native domains are emerging as a powerful way for individuals to own their digital identity. Much like choosing a traditional Web2 domain name, selecting a Web3 domain requires thoughtful consideration. However, because Web3 operates on decentralized infrastructure, there are additional factors that can significantly impact the usefulness and longevity of your digital identity.
If you’re thinking about claiming a Web3 domain, here are the key considerations every end user should understand before making a final decision.
Blockchain Compatibility Matters
One of the biggest differences between Web2 and Web3 domains is blockchain dependency. Many Web3-native domains are tied to a single blockchain ecosystem. For example .eth domains are built for Ethereum and .btc domains are designed for Bitcoin. While this may work well if you remain fully committed to one chain, it also creates a major limitation: your digital identity becomes siloed.
Web3 is still rapidly evolving, and users may find value in interacting with multiple blockchains. Each chain is created for a different purpose. If your identity only functions on one chain, you may find yourself needing to recreate your presence elsewhere, fragmenting your digital identity, wallets, and assets.
What to look for instead
Choose a domain designed for multi-chain interoperability. This allows your digital identity to move with you as the ecosystem evolves rather than locking you into a single network. Also, check to see if your desired domain works with a backend name service. Sometimes name services allow your domain to resolve on other chains, allowing you to use your name elsewhere with some restrictions.
The Risk of Name Collision in a Decentralized World
In Web2, domain namespaces are coordinated globally through centralized governance. Over the last few decades, the ICANN community has established DNS and all the policies, protections, and procedures around it. Among other things, this ensures that when you register a domain name, no one else can claim the exact same name within that top-level domain.
Because decentralization removes a single governing authority, multiple providers can theoretically issue the same name, even on the same blockchain. This phenomenon, known as name collision, can create confusion, impersonation risks, and uncertainty around true ownership.
What to look for instead
Seek domains are integrated with major name services. These signals increase the likelihood that your digital identity remains unique and protected over time. Most popular blockchains have a name service: Bitcoin Name Service (BNS), Ethereum Name Service (ENS), and Solana Name Service (SNS). Each service is unique so be sure to check out their documentation.
Web2 Usability is Necessary
A common frustration with many Web3-native domains is their limited functionality outside of blockchain environments. This might sound counterintuitive for a Web3-native domain, but the truth is that we still operate in a Web2 world. Because they aren’t accredited by ICANN and cannot operate on DNS, Web3-native domains cannot host traditional websites, support standard email services, or appear in search engine results. This creates a serious authenticity challenge. Whether Web3 enthusiasts like it or not, being discoverable through a website or email presence is still a core signal of legitimacy for individuals, creators, and businesses.
You may see Web3-native providers promoting future ICANN applications in hopes of becoming official DNS compatible domain names. Applications are due later in 2026, but that doesn’t mean the domains will be available on DNS in 2026. The ICANN approval process is not guaranteed, highly regulated, expensive, and approval can potentially be years away, if it happens at all. This isn’t to be negative; there’s room for everyone on DNS. But there are hundreds of applications and multiple registry providers applying for the same strings. Your desired Web3-native domain may never make it to Web2… or maybe it will. It’s impossible to predict the outcome of applications at this stage!
What to look for instead
Choose a domain that already works in both worlds, supporting Web2 functionality while also enabling on-chain digital identity and digital wallet resolution. This is a new frontier for ICANN-accredited domains, but options do exist! .locker is an example, among others.
The Ideal Choice: One Unified Identity
So what should users ultimately prioritize?
The strongest option is a domain that functions as an unified digital identity—one that bridges Web2 and Web3 rather than forcing you to choose between them. This “best of both worlds” approach protects your long-term presence online while still unlocking the ownership and utility that make Web3 powerful. By unlocking both, you ensure that your digital identity isn’t just innovative, it’s durable. And in a future where identity, ownership, and reputation increasingly live online, durability is everything.
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