As the web continues to evolve, so too do the opportunities—and risks—that come with it. Web3, often hailed as the decentralised future of the internet, promises enhanced control, privacy, and ownership for users. However, just as with previous iterations of the internet, it also presents new vulnerabilities. One such vulnerability lies in Web3 domains, which can be weaponised against brands and individuals if not properly managed.
What Are Web3 Domains?
Web3 domains, such as those ending in .eth, .crypto, or .dao, differ from traditional Web2 domains like .com or .org. Instead of being managed by a central authority, Web3 domains are decentralised and often exist on blockchain platforms like Ethereum. These domains allow users to have more control over their digital identity and are used primarily for decentralised websites, crypto wallets, and smart contract addresses.
While this decentralisation offers clear benefits in terms of autonomy and censorship resistance, it also presents challenges in governance, brand protection, and intellectual property enforcement.
How Web3 Domains Can Be Weaponised
1. Domain Squatting and Brand Hijacking
Just as in Web2, domain squatting—where bad actors register domains with the intent to extort legitimate businesses—exists in Web3. The difference is that Web3’s decentralised nature means there’s no central authority like ICANN (Internet Corporation for Assigned Names and Numbers) to arbitrate disputes. This can lead to brand hijacking, where an individual or group uses a blockchain domain containing your brand name to mislead customers or damage your reputation.
For example, if a company fails to secure its Web3 domain, someone else could register YourBrand.eth and use it for malicious purposes, such as:
- Setting up phishing websites that mimic your brand.
- Using the domain as a public-facing crypto wallet address to solicit funds fraudulently.
- Creating decentralised applications (dApps) under your brand’s name, leading to user confusion or mistrust.
2. Phishing and Social Engineering
Phishing attacks have plagued Web2 for decades, and Web3 is not immune. Bad actors could register domains similar to your brand and deceive customers or employees into interacting with a malicious website, where they might be asked to input sensitive information like passwords or private keys. A Web3 domain like Y0urBrand.eth (with the letter “o” replaced by zero) could easily be used to trick less vigilant users into interacting with a fake version of your website.
Web3’s decentralised, anonymous nature makes it even more challenging to track down and penalise these scammers compared to the relatively easier task of taking down Web2 phishing sites through legal or regulatory channels.
3. NFT and Token Scams
Web3 also encompasses blockchain-based assets like non-fungible tokens (NFTs) and tokens. An attacker could use a Web3 domain similar to your brand’s to mint fake NFTs or create fraudulent tokens, thereby damaging your brand’s reputation. For instance, a bad actor could create a website at YourBrandNFT.eth and sell NFTs falsely claiming to be affiliated with your company.
4. Misinformation and Defamation
Web3 domains can also be used as platforms to spread misinformation about your brand. Because Web3 is decentralised and lacks the same level of oversight as Web2, it’s more challenging to remove defamatory content hosted on these domains. If an adversary creates a website under a blockchain domain and spreads false information about your brand, there is little you can do to take it down quickly.
Why Registering Your Primary Brand Name is Crucial
The best defence against these threats is a proactive approach to brand protection, starting with registering your brand’s Web3 domains. Much like securing your .com, securing your .eth, .crypto, or similar Web3 domain should be considered essential to your digital strategy.
Here’s why:
- Prevention of Brand Hijacking: If you own the domain, bad actors can’t use it against you. Even if you don’t plan on using it immediately, simply owning it ensures your brand remains safe.
- Reputation Management: Owning your Web3 domain helps maintain trust with your customers. If they see your brand using an official Web3 domain, they’re more likely to trust that they’re interacting with the legitimate company.
- Future-Proofing: Web3 is still in its early stages, but it’s growing fast. Securing your brand now ensures you won’t face challenges in the future as Web3 adoption expands.
Why Registering Every Combination is Not Feasible
One common strategy for mitigating Web2 domain squatting was to register multiple variations of your brand’s domain (e.g., YourBrand.com, YourBrand.net, YourBrandShop.com, etc.). However, this strategy becomes impractical in Web3 for several reasons:
- High Costs: Web3 domains, especially popular ones, can be expensive. Registering every possible combination of your brand name across multiple Web3 domain systems (e.g., .eth, .crypto, .dao) can quickly become financially unsustainable.
- Rapid Expansion of TLDs: Web3 domains aren’t limited to just a handful of top-level domains (TLDs) like Web2. New blockchain-based TLDs are regularly being introduced. Keeping up with every new TLD where your brand might be at risk is nearly impossible.
- Decentralised Ownership: Unlike Web2, Web3 domains are fully owned by the registrant, meaning there’s no expiration if they’re tied to a wallet. Once someone registers a Web3 domain using your brand name, it may be impossible to ever get it back, even if they’re not actively using it.
Monitoring and Tracking Web3 Domains: A Necessary Strategy
Given the impossibility of registering every potential variation of your brand in Web3, a comprehensive monitoring and tracking strategy becomes essential. Instead of trying to out-register bad actors, your goal should be to keep an eye on how Web3 domains containing your brand are being used.
- Blockchain Analytics Tools: Use blockchain analytics and domain monitoring tools to regularly scan for new Web3 domains that could be related to your brand. These tools can provide insights into who owns the domain, how it’s being used, and whether any suspicious activity is occurring.
- Social Media and Community Monitoring: In Web3, communities play a significant role. Monitoring platforms like Discord, Telegram, and decentralised social networks for discussions or promotions involving domains that use your brand name can help you spot threats early.
- Take Legal Action When Possible: While Web3 is decentralised, some cases still fall under traditional legal jurisdictions. Consulting with a legal team to understand what actions can be taken in specific cases is a key step in protecting your brand.
Conclusion
Web3 domains are a double-edged sword. On one side, they offer a new realm of opportunities for brands and users alike, from increased autonomy to decentralised applications. On the other, they open the door to new forms of cyber threats like brand hijacking, phishing, and misinformation.
By taking a proactive approach—starting with registering your primary Web3 domains, followed by implementing a monitoring and tracking strategy—you can protect your brand in this new digital frontier. The decentralised nature of Web3 may make it harder to control compared to Web2, but with the right tools and foresight, you can safeguard your brand’s integrity in this evolving landscape.