Will Domain Names Be the Identity Layer of the Internet? | Namefi SOP2 with Victor & Sam
A Twitter Space Debate on the Future of Digital Identity in our Web
As the internet shifts toward a decentralized future with Web 3, a key question emerges: What will serve as the primary identity layer of the digital world? In a recent Twitter Space, experts debated whether domain names, tokenized on the blockchain, can fulfill this role or whether cryptographic addresses will take precedence. This discussion between Victor Zhou of Namefi and Sam Yilmaz highlighted the opportunities and challenges each approach presents.
Introduction
The debate centered on whether domain names, already familiar in Web 2, will continue as the dominant identity mechanism in Web 3, or whether cryptographic addresses—the native method in decentralized systems—are better suited for this purpose. Each side brought forward compelling arguments, addressing scalability, security, and user-friendliness.
Key Takeaways
1. Human Readability vs. Cryptographic Efficiency
Victor argued that domain names are human-readable, easy to remember, and already trusted as identity markers for businesses and individuals.
Sam countered that cryptographic addresses, while not human-friendly, are better aligned with the decentralized ethos of Web 3 and can be managed easily through wallets, without the need for human-readable elements.
2. Domain Names as an Existing Identity Layer
Victor pointed out that domain names already function as a key identity layer in Web 2. Tokenizing them on-chain offers new opportunities to build trust and utility in Web 3.
Sam questioned the need for domain names in a decentralized world, suggesting that cryptographic addresses could replace them without sacrificing functionality.
3. Spoofing and Security
Sam raised concerns about domain name spoofing, where attackers create lookalike domains to deceive users.
Victor acknowledged this risk but emphasized that domain names are still more difficult and expensive to spoof than cryptographic addresses, thanks to their hierarchical structure and existing trust systems.
4. Tokenizing Domains for New Utility
Victor argued that tokenizing Web 2 domains on-chain can unlock new uses, such as smart contract integration, collateralization, and monetization.
Sam agreed on the utility but questioned whether tokenized domains improve identity verification or if their primary value lies in economic opportunities like domain auctions and sales.
5. Scalability of Trust
Victor maintained that domain names enable scalable social trust—people can easily recognize and share trusted entities across the web.
Sam countered that wallet-based trust systems could achieve similar results, especially in decentralized networks where trust is built through verifiable on-chain activity.
Synthesis: A Balanced Path Forward
Both domain names and cryptographic addresses bring distinct advantages to Web 3, but their roles will likely differ. Domain names, already integral to Web 2, offer familiarity, scalability, and opportunities for tokenization that can enhance their use in the emerging decentralized web. They are particularly well-suited for brand recognition and interoperability between Web 2 and Web 3 applications.
However, cryptographic addresses—the native identity mechanism of Web 3—offer decentralization, privacy, and trustless verification, aligning more closely with the principles of blockchain. These systems enable users to manage multiple identities securely without reliance on a centralized naming structure.
The debate suggests a hybrid future, where domain names and cryptographic addresses coexist, each serving specialized functions. Domain names will likely continue to facilitate user-friendly, scalable trust, while cryptographic addresses will handle more secure, decentralized identity management.
Conclusion
As Web 3 develops, domain tokenization offers a valuable bridge between traditional and decentralized systems. While cryptographic addresses may dominate in decentralized identity verification, tokenized domains will provide important functionality, monetization, and interoperability in the evolving internet landscape. Together, these systems can support the next generation of digital identity.
For more information about next-generation domain names, real-world assets (RWA), DeFi, trading, and identity solutions, please visit Namefi.io. For inquiries, contact ops-team@d3serve.xyz.
Introducing Namefi SOP
Namefi SOP (Standard Operating Procedure) is a weekly series hosted by Victor Zhou, founder and CEO of Namefi, alongside Sam Yilmaz, interim COO. In these sessions, they discuss the latest developments at Namefi, explore industry trends, and debate the future of Web 3.
Get weekly live SOP updates! Follow us on Lu.ma and Twitter to stay connected.
Learn more about Namefi.io.