The next wave of Web3 innovation has taken shape, this being interoperability between the Web2 and Web3 networks and technologies.
The concept of Web2 and Web3 interoperability is still fairly new, and involves bridging the Web2 (traditional Domain Name System or Internet) with Web3 and blockchain technologies. Earlier this year, I wrote a piece on .box and the idea of domains connected across two infrastructures. This article takes that innovative concept to the next level.
“Dominion: The Future of Web3 Identity & Internet Domains”
This April, I was invited to join D3 Global Inc., better known as D3, and attend their inaugural conference in sunny Las Vegas, Nevada. The invitation stated “Dominion is the must-attend event of the year for leaders from top Web3 ecosystems and the Internet domain industry to hear the latest developments around identity, security, and interoperability” — I was immediately intrigued. The invitees represented a diverse group of traditional Web2 registry operators, corporate and retail registrars, Web3 specific foundations (Cardano and Solana), and crypto native folks wanting to learn about the next potential big opportunity.
The conference kicked off with a speech by D3’s CEO, Fred Hsu, who some might recognize as a co-founder of Oversee.net, a former technology company that operated consumer web and mobile properties. Fred opened by sharing his vision for building a better internet (and included a shout out to Markmonitor for attending), in which he discussed the concept of “Real-World Asset Value” being applied to domains. Think of that as essentially “land on the internet” and building your digital identity through asset management and ownership.
Domain Names and the Potential for DNS and Blockchain Technology Interoperability
During Dominion 2024, Fred shared another aspect of D3’s vision, that is, “onboarding the next billion [Web3] users.” What this necessitates is creating a world in which the Web2 that we know and regularly interact with, is integrated with the technologies that Web3 and the blockchain can offer. As mentioned earlier, the idea of interoperability between the Web2 and Web3 ecosystems is still a developing concept with technologies currently being created.
Is the world ready? To be determined. But one thing can be said about D3 and their vision: It’s ambitious, especially when considering that ICANN has not taken a definitive stance or position regarding Web3.
Collaboration Makes the Idea of Interoperability Possible
D3 announced a partnership with Identity Digital at the conference. This partnership will allow for the TLDs under management by Identity Digital as registry operator in Web2 to be claimable in the Web3 space, and managed there by D3 as the registry operator.
Does it sound confusing? I’ll break it down a bit more.
Essentially, what D3 will be doing is replicating an existing TLD, like “.domains,” on the blockchain and offering this domain as a tokenized asset, or *TLD, through the D3 marketplace. (Did you know that “*TLD” is Web3’s way of writing “.TLD”?) That’s one aspect of D3’s interoperability offering. The next is D3 Connect, which is their approach for Name Resolution in Web2 and Web3. Its tagline is “One name to rule them all.” That speaks to their position that one digital identifier, or domain name, should be used across all the blockchains and the central root servers of the DNS.
The idea behind D3 Connect means that an NFT domain like “domainshane.crypto” could have an IP address and Web2 domain name associated to it, like “domainshane.com.” It means a Web3 or NFT domain would resolve on Web2, the Internet as we know it, while simultaneously allowing multiple wallet addresses to be associated with it, so it would resolve across the Ethereum, Bitcoin, Polygon, etc. blockchains.
It is a novel project that would unite both iterations of the internet, solving for the resolution issues that Web3 has with traditional domains and the transactional issues challenging cross-chain compatibility. But ultimately, this all would need to be anchored within the DNS, which would set a new standard for Web3 operations going forward.
Web3 and the New gTLD Program: Next Round
ICANN’s Next Round for New gTLDs is slated to occur in 2026. As the application period approaches, Web3 businesses with ties to Web2, like D3, are preparing. These preparations include plans to apply for their Web3 TLDs, and discussing partnerships that could allow for them to apply for the Web2 version of their TLDs in the next round. One such opportunity comes from D3’s partnership with Core Chain, a layer 1 Bitcoin blockchain that can meet the scalability, interoperability, and composability of the Ethereum blockchain. Through D3, they will be applying for their own .core Top Level Domains in the Next Round.
Just like Allen Iverson, or Al (or .AI for the domain geeks out there), the meanest crossover in the game is interoperability and universal acceptance between Web2 and Web3 — it just may help with many of the challenges the internet currently faces.
But to get there, it’s important to note that each speaker, whether that was Lily Lui, President, Solana Foundation or Frederick Gregaard, CEO, Cardano Foundation, stated the importance of universal acceptance and community education. A well-informed community can drive adoption and innovation in both the blockchain and the traditional Web2 spaces.
Want to Learn More about Web3 and NFT Domains?
As always, Markmonitor stays customer-driven in everything that we do. We’ll continue to keep our finger on the pulse of what’s new and upcoming in the Web3 world so that you can make well-informed decisions for the evolution of your brand. Contact your Domain Portfolio Advisor to learn more about Markmonitor’s Web3 Solutions, designed to address the needs of global brands.
Connect with me on LinkedIn to learn more about the latest in domain and Web3 industry news or start up a conversation. As manager of Global Industry Relations here at Markmonitor, and a member of the International Trademark Association’s Emerging Issues Committee, it’s important to me that brand rights and protections are considered in every discussion about innovation, interoperability, and policy in both the traditional Web2 and emergent Web3 spaces.
