Jun 1, 2022 - by Phil Lodico
Web3 Identities: Opportunities and Risks
Blockchain technology has presented new opportunities and risks, and as the partner to many of the world’s leading brands, GCD is assisting its customers in navigating this fast-changing space.
These Web3 identities, like GCD.ETH, are gaining momentum. We’ve seen a drastic increase in the number of identifiers such as this being acquired and at times used.
These names, commonly called blockchain domains or domain NFTs, aren’t used in the traditional website resolution manner. Web3 identities, such as .ETH, are being used as a way to simplify the naming of blockchain wallets. Rather than a long character string, some users are now simplifying that by pairing their wallet with their .ETH, or .CRYPTO wallet name. Additionally, we are seeing an increasing use as a moniker on social media platforms like Twitter.
As with all new and emerging spaces, there are risks. We don’t quite know the longevity of these names or the potential for name collisions when the next round of ICANN approved TLDs are launched.
And as with the launch of any namespace, there is the potential for brand abuse to occur. We believe that it is prudent for all brand owners to understand the risks and benefits associated with this space and at times, to take action.
GoDaddy does not endorse unregulated name spaces, but because these new technologies do not currently offer reliable or robust dispute mechanisms, we believe defensive registrations are the best brand protection strategy.
GCD is offering a suite of educational, strategic, and tactical services to help our clients better understand and secure the appropriate identifiers to appropriately protect and promote their brands. If you would like to learn more about these Web3 identities or need assistance in procuring ones such as .ETH or .CRYPTO, we are here to assist.
With more than 15 years of domain industry experience, Phil has long been a vocal advocate for brand owner’s rights. He was most recently Managing Partner at Fairwinds Partners, the industry’s leading domain name consultancy. While at Fairwinds Partners he advised multinational corporations on their domain name strategies to increase traffic, grow revenues, and improve online customer experiences. He has been actively involved in ICANN’s Business Constituency, was a member of ICANN’s 2009 Nominating Committee, and has served as Vice President of the Coalition Against Domain Name Abuse (CADNA). A graduate from Hobart College, he holds a bachelor’s degree in Economics and Psychology, receiving honors for his work in Consumer Choice Theory.
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