DomainFi

DomainFi, a blend of "domain" and "finance", describes the use of internet domain names as financial assets on blockchains. It covers two kinds of name. Blockchain-native names, such as those issued by the Ethereum Name Service, are already tokens that can be bought and sold like other NFTs. Traditional web domains, such as .com addresses, can be linked to tokens through registrars that agree to recognize on-chain transfers, a form of tokenization. Once a domain exists as a token, it can be traded on marketplaces, split into fractional shares, rented out or pledged as collateral for a loan in a DeFi protocol. Supporters say this makes a large and illiquid asset class easier to price and trade. Risks include uncertain legal ownership of tokenized web domains, which still depend on registrars and the domain-name authorities, valuation disputes and cybersquatting claims.