Possible uses for domains - what are they?

A fixed internet address in the form of a Unique Resource Locator (URL) or Fully Qualified Domain Name (FQDN) is a daily necessity for many people and almost all businesses. In practice, a domain has many applications that often make it indispensable, in some cases a lucrative investment, or, for example, when using more than one Top Level Domain as an extension to an existing website, to increase its reach. Depending on its use, it is recommended to use a specific type of domain - such as generic domains (gTLD) or country code domains (ccTLD) - to achieve an optimal effect.

What is a Domain?

The term Domain is actually a shortened form of Second and Top Level Domain and in general language usage refers to the internet address that a website uses to address its web space or Virtual Private Server or Dedicated Server. Technically, however, this usage is an ambiguous abbreviation, as to identify a computer with a unique combination of letters, it consists of multiple sections that include at least a Subdomain and a Top Level Domain separated by a dot. The governing institutions and organisations for generic, sponsored (sTLD), new (nTLD), or country-specific types of domains allow their customers to register unused names freely or under certain conditions.

What are the main uses for domains?

A domain cannot be purchased permanently; instead, it is allocated to the first interested party by the operator (registrar) of the top-level domain for a specific period of time. The maximum duration and costs depend on the type, with the conditions varying significantly between generic domains or country-code domains at the discretion of the registrar. Therefore, the right to use a domain for a fixed period represents an intangible asset that can be sold to other individuals or organisations. This allows one to earn money through domain trading. After the deadline, the current owner exclusively has the option to renew it under predetermined conditions. If they choose not to, the domain will be released after a grace period of usually a few weeks and can be acquired by other interested parties.

Essentially, the domain owner has all possible uses available unless the registrar explicitly restricts them, for example, by setting content guidelines. The main uses for a domain include the following:

• Use for a private or informational website
• Running an online shop or other e-commerce activities
• Representative presence for companies to attract customers
• Utilisation as an email communication address
• Short- or long-term investment in an attractive domain with potentially high resale value
• Customer support for virtual or physical products
• Platform for offering services such as web hosting, cloud solutions, or consulting
• Increasing a website's reach through multiple TLDs as part of a Multi Domain Strategy

In practical application, the majority of domain owners prefer to use their domain for running a website with private, commercial, or informational interests, or to increase the reach of an existing one, for example by using country-specific domains. While using domains as an investment for profitable resale still plays a certain role, especially with the release of new Top Level Domains, the situation is no longer comparable to the late 1990s up to the introduction of nTLDs in 2008. Nevertheless, it is still possible to generate high profits by investing in attractive country-specific or generic domains. Other uses for a domain, such as serving as an email portal or providing access to local networks through VPN access, are common in larger companies. They may use an additional internet address to avoid using a subdomain or, for structural reasons, have parts of the IT infrastructure managed by a subsidiary.

What restrictions can a domain have on its usage?

Only a few registrars impose restrictions on the usage of a domain when registering. However, there may be formal requirements that, for example, reserve country-specific domains for interested parties in a specific location or link generic domains to a particular industry or thematic content. Some examples of such conditions include the .aero domain (for the commercial and governmental aviation industry), the .int domain (for globally operating companies and organisations), .name domain (for individuals), or .jobs domain (for job listings from government institutions or companies) and .shop domain (e-commerce).

Furthermore, some registrars try to restrict commercial trading and registering domain addresses for investment through formal requirements. For example, for some generic domains, the owner is obliged to make a website accessible at that address. In practice, this condition is practically never actively enforced - even checks upon explicit request following complaints from other owners are a rare exception. Important and popular generic top-level domains such as the .com Domain, .org Domain, or .biz Domain, as well as country-code domains with global interest like the .de Domain, completely waive such requirements and deliberately do not restrict the use of domains. Some country-code TLDs are often used as ambiguous domain endings.

Image credit: mohamed Hassan on Pixabay