This article was co-written by Tom Ambridge and David Barnett.

Interest in ‘crossover’ between the worlds of Web2 (the ‘classic’, DNS-based, regulated Internet) and Web3 (the emerging, decentralised, unregulated, blockchain-based Internet)[1] is increasing amongst many stakeholders involved in the digital environment.

Two recent stories have highlighted the evolving interactions between these formerly relatively distinct areas of the Internet, and raise a number of issues of which brand owners may be advised to be aware.

1. The development of .box

The nature of .box (‘dot-box’), one of the new domain-name extensions recently launched[2] as part of the ongoing (Web2) gTLD programme[3], is becoming clearer following initial announcements that the extension would be associated with an innovative dual Web2/Web3 offering.

The extension is now fully live and domains are available for registration by the general public. A .box purchase from the provider[4] –  made on the basis of a payment of $120 in cryptocurrency per year, up to a maximum period of 10 years – now grants the user a ‘classic’ Web2 domain (including options for website and e-mail functionality), an identically-named Web3 domain (including the associated potential functionality of being able to create a decentralised website and be able to accept transfers of cryptocurrency and other blockchain assets), and access to the .box app, used to access and make changes to the domain properties. As such, this is the first credible Web2/Web3 crossover, and the first gTLD under ICANN regulation to offer Web3 functionality. The My.Box website states that the scheme operates in partnership with ICANN, Intercap Registry, and Web3 providers ENS, 3DNS, and Optimism.

Numbers of registrations are already ramping up rapidly and – in view of the potential threats of abuse and cybersquatting – brand owners are advised to be mindful of registrations which may infringe their IP, and to consider their own defensive strategies. The provider of the new domains even offers a search function[5] to check for (exact string-match) registrations, which links to a profile page for the owner.

Additionally, enforcement is possible in a similar way as for a regular domain name. As an ICANN TLD, the registrar / registry operator has an abuse policy and a registration agreement prohibiting trademark infringement. As such, it is possible to file UDRP / URS disputes against bad-faith registrations. If successful, the Web2 domain is transferred to the brand owner if requested, and the Web3 domain is cancelled and may be re-issued to the brand owner.

As of 08-Feb-2024, there are 1,910 .box domains listed in the zone-file, with almost all of the one-character alphanumeric names already taken (with the exceptions of 1.box, 3.box, a.box, e.box, and i.box). Many well-known brand terms have already been registered as SLD (second-level domain; the part of the domain name to the left of the dot) strings, including ‘adidas’, ‘blackrock’, ‘bmw’ (and ‘bmwgroup’), ‘chatgpt’, ‘coach’, ‘cocacola’, ‘ferrari’, ‘google’, ‘ibm’, ‘mastercard’, ‘mercedes-benz’, ‘o2’, ‘openai’, ‘oracle’, ‘orange’, ‘paypal’, ‘pokemon’, ‘pornhub’, ‘porsche’, ‘postoffice’, ’prada’, ‘reddit’, ‘taobao’, ‘target’, ‘taylorswift’, ‘telegram’, ‘tencent’, ‘tesla’, ‘tiffany’, ‘toyota’, ‘tysonfury’, ‘uber’, ‘ups’, ‘visa’, ‘xbox’, and ‘youtube’, in addition to a range of industry and product-related terms.

2. GoDaddy partners with ENS

It was announced on 5 February that domain name registrar GoDaddy would be partnering with ENS (‘Ethereum Name Service’, a Web3 provider and registrar, offering naming services for assets on the blockchain associated with the Ethereum cryptocurrency)[6]^,[7].

The partnership will allow owners of Web2 domains registered through GoDaddy to link their domain with an Ethereum address (which must have been registered through a Web3 provider), allowing access to a range of Web3 services, and offering the option for the domain name to be used as a human-readable address to be used for sending and receiving assets such as cryptocurrency and NFTs. Users who do not require this functionality will retain the option to keep their domain name unintegrated. 

* * *

These two stories highlight the increasing options for interconnectivity between the Web2 and Web3 ecosystems, and it is likely that the boundaries between these portions of the Internet will become increasingly blurred, particularly if general compatibility of Web3 content with classic Web2 components (such as mainstream browsers supporting access to decentralised (blockchain) domains) improves. It is likely, however, that a number of changes to regulation and legislation also will be required in order to create a truly seamless landscape, such as initiatives to prevent naming collisions[8], and further improvements to enforcement routes for infringements in the Web3 environment.

Furthermore, connectivity between (hexadecimal) wallet addresses, blockchain domain names and familiar web2 names opens a lucrative on-ramp for traditional brands and their customers to benefit from Web3 technology and asset ownership, depending on what is in store for tradable goods following the demise of jpeg NFTs.[9]

However, with broadening capabilities comes increased potential for bad faith in the form of phishing and fraud. Impersonators will be drawn to the addition of non-custodial wallets to heavyweight domain extensions such as .com. Rights owners must see these technological developments as not just opportunities for brand evolution, but also as vectors for detailed investigation and target tracing within online brand protection.

[1] https://www.iamstobbs.com/trends-in-web3-ebook

[2] https://www.iamstobbs.com/opinion/un-.zip-ping-and-un-.box-ing-the-risks-associated-with-new-tlds

[3] https://www.iamstobbs.com/opinion/expert-.watches-.new-.online-.website-.news-.lol-a-review-of-the-current-state-of-the-new-gtld-programme

[4] https://www.my.box/

[5] https://my.box/search

[6] https://blog.ens.domains/post/godaddy-partners-with-ens

[7] https://uk.godaddy.com/help/what-is-ens-41952

[8] https://www.iamstobbs.com/opinion/the-iotex-case-domain-naming-collisions-and-other-emerging-risks-in-the-blockchain-ecosystem

[9] https://dune.com/queries/47101/92814