Easy Guide To Buy And Use Solana .sol Domains
Solana Name Service (SNS) and .sol domain addresses are a protocol that help map long and complicated Solana wallet addresses (i.e. 3bp4oR1eKULLGQ5EpzhM29ueV7yFhxyhDuR8eAM7zDZi) to an easy and human-readable address such as "alice.sol". Solana Name Service is managed by Bonfida, one of the earliest builders on the Solana blockchain and the first project in the Serum Ecosystem.
Solana .sol domain addresses function similar to the way that most website names map to an IP address. For example, solana.com maps to the IP address 126.96.36.199. Solana.com is a lot easier to remember and read than 188.8.131.52. Computer scientists developed the foundation for mapping IP addresses to domain names (Domain Name System or DNS) in the 1970s. Today, almost all people use website names rather than the website IP address simply because it is easier to remember. DNS also enables website owners to change servers and IP addresses while maintaining the same domain name.
Today, most cryptocurrency blockchains still use a complicated convention similar to IP addresses. Solana addresses are case sensitive and between 43 and 44 characters long. This makes it nearly impossible for the average person to remember a single Solana address. The complicated nature of Solana addresses creates a financial risk for users - mistyped addresses can result in lost funds and NFTs. Transactions sent to mistyped Solana addresses cannot be reversed or refunded. Solana .sol domain addresses help address this risk and make it easier for users to remember.
Ethereum Name Service (ENS) is currently the the most widely integrated blockchain naming standard today with 1.67 million crypto domain names registered, 505 decentralized app integrations and 482,000 unique owners. Ethereum Name Service uses the .eth domain and maps to Ethereum addresses. Ethereum Name Service also enables users to create censorship-resistant decentralized websites by uploading the content to IPFS or Arweave. The website content is accessible using the ENS name. Solana Name Service .sol domains function very similar to Ethereum Name Service .eth domains.
Solana .sol domain names can consist of alphanumeric characters (a, B, 8, etc), underscore (_), dash (-), and emojis (😊, 🙂, 😁, 😄, etc). Top-level domains such as .sol are owned by smart contracts called registrars which specify rules governing their subdomains.
Bonfida sells Solana .sol domain names as fixed price sales and auctions. Bonfida's .sol domain names can be purchased using FIDA, Bonfida's native token. Solana .sol domain names can be purchased for as little as $5. Prices vary based on scarcity and demand.
You must own FIDA tokens to buy Solana .sol domain names using Bonfida's service. If you do not already own FIDA tokens, you can use Avana Wallet's native token swap feature to swap Solana SOL or another SPL token for Bonfida FIDA.
The process to buy Solana .sol domains from Bonfida is similar to most online retail transactions. Add the domain you want to your cart, then checkout using your Solana wallet. You pay for your Solana .sol domain name by sending Bonfida FIDA tokens, and you receive the domain name in exchange.
As Solana .sol domain names become more popular, demand for Bonfida FIDA token could increase because all transactions must use the FIDA token. The economic principle of supply and demand suggests that the price outlook for Bonfida FIDA tokens will be positive if demand for Solana .sol domain names continues to increase.
Step 1: Go to https://naming.bonfida.org and find a domain name you want.
Step 2: Add Domain To Cart
Step 3: Checkout
Bonfida enables you to make offers on existing domain names if the Solana .sol domain name is already owned by another Solana wallet address.
Step 1: Make an offer on the existing Solana .sol domain name you want.
Step 2: Sign the transaction for the offer. The Solana SOL will be held in escrow.
Step 3: Wait for buyer to respond. You can cancel your offer with Bonfida and receive a refund if the buyer does not respond.
Solana .sol domain name prices vary greatly. You can buy a Solana .sol domain name for as little as $5. Today the most expensive Solana .sol domain name is 💎.sol, which is worth over $60,000.
Similar to traditional website domain names, Solana .sol domain names are limited in quantity. As a result, many crypto investors are buying Solana .sol domain names in anticipation of future price gains (also known as domain name speculation).
Domain name speculation has been profitable for rare domains over the past several decades. Today it is common for rare domains to sell for millions of dollars. Earlier this month 000.eth sold for 300 ETH, or about $320,000 at the time.
Today, three-digit Ethereum Name Service .eth domains are hot. Three-digit domain names are rare, and will likely exhaust supply soon. Similar trends for three-digit usernames existed for early Twitter usernames too. Also, common first and last names such as bob.sol, alice.sol, etc are popular.
Many non-primary markets offer crypto domain names for sale too. OpenSea offers crypto domain names for sale on its NFT marketplace (currently Solana .sol domain names are not for sale on OpenSea).
Sending Solana SOL and other SPL tokens to Solana .sol domain names is easy when you use Avana Wallet. Enter the Solana .sol domain name in the address field and click send. Avana Wallet then maps the Solana .sol domain name to a Solana wallet address for you automatically.
Remember that Solana .sol domain names can be bought, sold, and transferred. Always verify that the intended recipient still owns the domain name before sending funds to a Solana .sol domain name. Solana .sol domain names are similar to houses - a person can live in the house and later move. Make sure the person still lives there before sending mail to the house address.
Always check spelling of the domain name before sending. Misspelling a Solana .sol domain name can result in funds being sent to the wrong Solana wallet address. Avana Wallet verifies that the Solana .sol name exists before sending funds, and invalid Solana .sol domain names are rejected.
Bonfida has also created a tool to link your Twitter handle to a Solana wallet address. Other Solana wallet users can then send payments to your Twitter handle using Avana Wallet. As of July 2022, approximately 48,000 Twitter handles have been linked to Solana wallet addresses.
Linking Twitter handles to a Solana address functions very similar to .sol domain addresses. The Twitter handle maps to a wallet address. Once you register your Twitter handle you can manage the connection by updating the Solana wallet address.
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