When the decentralized web becomes as big as the current Internet, you’d probably want to own a piece of it. And it may be closer than we think. Blockchain technology is garnering more users every day, as people are starting to see the value of a decentralized Internet.
What does this have to do with Bonfida?
The protocol allows you to own a piece of the Solana-powered web. Solana is a layer-1 blockchain, which means that it functions like a ledger-type of web platform that serves as a unit of account, allowing people to participate in global commerce and own digital assets, such as domain names. But instead of offering .com domains, it allows you to acquire .sol names.
This guide illustrates how the Solana naming service works, how it can benefit you as a user, and other features Bonfida has in store for the ecosystem as a whole.
What is Bonfida?
Bonfida is a blockchain infrastructure protocol that provides a suite of products aimed at bridging gaps between various protocols across Solana, ranging from decentralized naming services to encrypted messaging.
Its web3 infrastructure has majorly contributed to improving the user experience of the decentralized finance (DeFi) ecosystem, making it an established developer in this space.
Bonfida’s flagship product, the Solana Name Service, enables the community to replace complex wallet addresses with customizable characters. It is also the team behind Jabber, Solana’s first upcoming messaging application, which it hopes to breaks barriers in web3 communication.
Additionally, Bonfida provides users with the opportunity to build products with various software. It currently has an asset-agnostic orderbook, Bonfida utils, Serum Dex V4, domain name tokenizer, and agnostic candles, which all serve builders, traders, and general users.
FIDA Token ($FIDA)
Bonfida has a utility and governance token called $FIDA, which can be used in different ways, including purchasing domain names, using the platform’s bots, and staking. Furthermore, the token can also be used to either submit proposals regarding the protocol’s development or upgrade, or cast votes on proposals made by others.
By being a holder, you essentially become somewhat of a shareholder or governing council member of Bonfida.
The project developers have implemented the so-called buy-and-burn program to be able to contain the total token supply. However, 10% of the collected tokens will be rewarded to stakers.
Note that $FIDA is currently listed on top exchanges such as Binance, Coinbase, FTX, and many more.
How to Stake $FIDA
Holders can stake $FIDA and be able to accrue rewards. You will need an SPL wallet like Phantom or Solflare and some SOL for paying transaction fees. If you already have these requirements, you can start by visiting the Bonfida staking portal.
Connect your wallet to begin. Staking $FIDA allows you to earn about 0.1% token rewards per day (this could be subject to change). Proceed by choosing your preferred amount and duration. After placing your options, your reward details will be automatically displayed.
Note that there are four different staking period options: one, one and a half, two, or three years. You can also get more $FIDA by staking for another roughly six months, increasing the multiplier from 1x to 2x or 3x.
What is Solana Name Service?
The Solana Name Service (SNS) allows users to own domain names mapped to an address, content identifier, image, and more. Its most commonly known function is to cutomize wallet addresses into a user-friendly format, which is similar to the Ethereum Name Service (ENS) but on Solana.
The domain names of SNS are actually important in the web3 space; users no longer have to remember their wallet addresses when invoicing payments on the go. You may be familiar with the concept of the Domain Name System (DNS), which is predominantly used as the ‘phonebook’ of the Internet, allowing everyone to access websites through URLs instead of IP addresses.
Blockchain domains work similarly, except they are decentralized, meaning that there is no registry company that controls the domains. Users get to fully own the domain names that they purchase to be used as they please. Since SNS has a decentralized nature, users can freely utilize domain names without being anxious about getting censored or having their website taken down.
Why Use Solana Name Service?
The Solana Name Service has broad applications, but the most notable of them all is to build an identity in the metaverse. In this way, users can express themselves freely while conveniently being able to utilize human-readable addresses for receiving payments, connect with people better, and host projects in a decentralized web setup.
The crypto community knows how unwieldy wallet addresses are. A typical Solana address looks like this: AjKyVmNk5Li7oYG71thNVq7X5iVzrYbKeqRMPPaPLqAz. No wonder cryptocurrencies are taking longer to get mass adoption. You can’t memorize something like this.
- For a deep dive on Solana, check out our Solana guide
SNS solves this problem by replacing it with readable names like ‘stark.sol’ or metaroids.sol. Now, users can transact with a human-readable name instead of employing cryptic keys.
You can also link your SOL domain names with your Twitter account, allowing friends to easily send you funds using your Twitter handle instead of your normal address. Additionally, domain names happen to be non-fungible tokens (NFTs), which are blockchain assets that are tradable. In other words, you can make money selling your NFT domain name for a profit.
Lastly, SNS is in partnership with 4EVERLAND, which allows owners to launch their website on InterPlanetary File System (IPFS) and associate their domain names. Quite handy if you want to build a website that could last.
How to Buy a .sol Domain with Bonfida
You can purchase a .sol domain by heading to Bonfida’s SNS webpage. The page displays an empty bar, where you can search for your preferred name or browse through the options. Upon choosing, you will see the availability of the name and its corresponding price in $FIDA.
If the domain is already taken, you can place an offer. If the owner approves, the purchase will be completed. On the other hand, you may choose from alternative names.
You can continue by adding the .sol domain to your cart. Wait for your order summary to appear. Note that its storage size can be adjusted as required. After assessing the total, you can pay using $FIDA. Note that you’d still need some SOL for fees.
Confirm your transaction and wait for it to complete. Once it is finished, you now have a domain name that serves as your web3 identity. Fun fact: you can even own an emoji domain.
Lastly, if you’re simply buying domains with profit in mind, pay attention to the rarity, because the secondary market prices depend on it. In general, the more popular and shorter the name is, the higher it is valued.
How do I Use Solana Domains?
A Solana domain name can be used in a bunch of ways.
You can transact with others using almost any wallet since most well-known dapps support SNS. Take Phantom Wallet. In transferring funds with SNS, users would only need to receive crypto by using a .sol name or Twitter handle. The two will serve as a replacement for lengthy public addresses.
When using a Solana domain, follow the format: <domain_name>.sol (e.g., stark.sol).
You may also opt to use your linked Twitter account, which should appear in this structure: @<twitter_handle> (e.g., @stark). Your sender can simply type any of those in their wallets instead of your public address. Note that a Twitter handle is case-sensitive. Therefore, always check your inputs.
How to Access .sol Domains in Browser
Although blockchain technology is powerful, it has limitations too. Other naming services cannot reach a wider audience because of the challenges in accessibility. However, SNS was able to consider such a problem with its resolver. Users can now easily browse their SNS websites in the web2 space through this innovative solution.
All you need to do is add your website URL to your Bonfida Naming record. Head over to the Naming portal, then connect your wallet that holds your domain NFT. In this example, let’s say you own bonfida.sol and want to link that to your normal website: bonfida.org.
After adding your website URL, your .sol domain will now redirect to your web2 website. The drawback to this, we dare say, is the formatting. Your website visitors would have to type in the following format: https://yourname.sol-domain.org. Try searching https://bonfida.sol-domain.org.
The problem here is the friction involved in having to type it in that format. This is a subtle but huge drawback in our opinion. But it is what it is.
Alternatively, if you don’t have a traditional website to connect your .sol name to, you can host your domain content on either Arweave or IPFS. But we have to warn you, the process is a bit more technical. If you’re still interested, follow the guides here and here.
What is xMS?
xMS is a cross-messaging service that aims to bridge the communication gaps within the web3 space through on- and off-chain connections.
A collaborative initiative between Bonfida, notification tool Notifi, and web3 social platform Only1, xMS currently runs on both Solana and Ethereum but is planned to roll out into other chains soon. Although the protocol is still in its initial stage, the developers already have prepared different features: notifications, NFT- or token-gated communities, exclusive groups and channels, and badges.
Additionally, the alliance formed between the three is driven by their vision of making communications possible across previously incompatible chains, as well as various subsectors. For example, GameFi and DeFi users will be able to freely connect with each other without technological barriers. Currently, the project is gaining more support from 19 partnerships and shares the same hope for the web3 future.
Conclusion
Bonfida has been a great contributor to the Solana ecosystem, thanks to all the infrastructure it has provided. The naming service appears to be its primary offering, which is the only known protocol to be building a decentralized domain protocol.
Therefore, if you have a high conviction on the success of Solana as a blockchain network, then perhaps getting a .sol domain may be worth your while.
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