Introduction to Domain Names
Master the technical foundations, historical evolution, and industry fundamentals of domain names.
What You'll Learn
- DNS system architecture and resolution process
- Historical evolution from ARPANET to modern internet
- ICANN, registries, and registrar ecosystem
- Brand value and market economics principles
- Supply and demand dynamics in domain markets
- Technical concepts for domain management
Technical Fundamentals of Domain Names
Understanding the technical infrastructure that makes domain names work is essential for successful domain investing.
Domain Name System (DNS)
The DNS is a hierarchical naming system that translates human-readable domain names into IP addresses that computers use to communicate.
Root Level
Managed by IANA, contains 13 root servers worldwide
Top-Level Domains (TLDs)
.com, .org, .net and 1,500+ other extensions
Second-Level Domains
The registerable part: "example" in example.com
Subdomains
Optional prefixes: "www" in www.example.com
Domain Resolution Process
When you type a domain name, this multi-step process happens in milliseconds to connect you to the right server.
Local DNS Cache
Check browser and operating system cache
ISP DNS Server
Query internet service provider's DNS server
Root Nameserver
Direct to appropriate TLD nameserver
Authoritative Server
Return IP address for domain
Essential Technical Concepts for Domain Investors
TTL (Time To Live)
How long DNS records are cached (300-86400 seconds)
Nameservers
Servers that handle DNS queries for a domain
DNS Propagation
Time for DNS changes to spread globally (0-48 hours)
A Records
Map domain names to IPv4 addresses
CNAME Records
Create aliases pointing to other domain names
MX Records
Specify mail servers for email delivery
The Evolution of Domain Names
From ARPANET to the modern internet, understanding domain history provides crucial context for investment decisions.
1983 - DNS Invention
Paul Mockapetris invents the Domain Name System to replace unwieldy HOSTS.TXT files
1985 - First Domain
symbolics.com becomes the first registered domain name on March 15, 1985
1988 - Original TLDs
Seven original TLDs established: .com, .edu, .gov, .int, .mil, .net, .org
1995 - Commercial Internet
NSF lifts restrictions on commercial use, sparking domain registration boom
1998 - ICANN Formation
Internet Corporation for Assigned Names and Numbers takes over domain management
2012 - New gTLD Program
ICANN launches program adding 1,200+ new generic top-level domains
Domain Industry Structure
Understanding the key players and organizational structure is essential for successful domain investing.
ICANN
Internet Corporation for Assigned Names and Numbers coordinates the global internet's systems of unique identifiers.
- Manages root zone database
- Oversees TLD delegation
- Develops domain policies
Registries
Organizations that operate top-level domains and maintain authoritative databases of domain registrations.
- Verisign (.com, .net)
- Public Interest Registry (.org)
- Identity Digital (300+ TLDs)
Registrars
ICANN-accredited companies that sell domain registrations directly to end users.
- GoDaddy (20% market share)
- Namecheap (8% market share)
- 1,000+ other registrars
Brand Value and Market Economics
Supply and demand dynamics create the foundation for domain valuation and investment opportunities.
The Value of Digital Brands
Memorability
Short, brandable domains are easier to remember and type, reducing customer acquisition costs.
Trust & Credibility
Professional domain names build consumer confidence and improve conversion rates.
SEO Benefits
Exact match domains and keyword-rich domains can provide search engine advantages.
Type-in Traffic
Generic domains receive direct navigation traffic from users typing the domain directly.
Supply and Demand Dynamics
Limited Supply
- Only one registration per domain name
- Premium names already registered
- New TLDs create supply, dilute value
Increasing Demand
- 4.6 billion internet users worldwide
- 1.7 billion websites need domains
- Emerging markets going online
Market Factors
- Technology trends drive demand
- Economic cycles affect investment
- Industry growth creates opportunities
Domain Market Statistics 2025
Key Takeaways for Domain Investors
Technical Foundation Matters
Understanding DNS, nameservers, and propagation helps you manage domains effectively and troubleshoot issues.
History Informs Strategy
Market cycles, technology adoption, and regulatory changes follow patterns that smart investors can leverage.
Economics Drive Value
Supply constraints and growing digital demand create the fundamental economics that make domain investing profitable.
Next: Domain Name Keywords
Learn about generic keywords, brandables, acronyms, and numerics