Cybersquatting - a Web2 problem impacting Web3
Remember when dropping vowels was all the rage?
E.g. 'Tumbler'→'Tumblr', 'Blender' → 'Blendr'.
(Even Twitter started as 'Twttr').
Turns out that trend was born out of necessity, often due to the high cost of .com domains.
These high costs are typically a result of cybersquatting - the practice of buying domains that feature commonly used words, with the aim of selling them to trademark holders.
Sometimes, it works; like when Michael Saylor sold voice.com for $30M (which undoubtedly went into as much BTC as he could get his hands on).
It actually became such a big problem that in 1999, two pieces of legislation passed to curb it - alongside the creation of the 'Internet Corporation for Assigned Names and Numbers' non-profit (know as ICANN, to their friends).
It's been a problem for Web2 companies for years, and now, people are starting to snap up as many simple Ethereum Name Service (ENS) assets as possible.
(Nike.eth and Amazon.eth are currently up for grabs on OpenSea).
ENS is an open, decentralized naming system powered by the Ethereum blockchain.
Which is VERY cool.
Except it puts .eth domain names outside the jurisdiction of ICANN...
So what are companies to do?
If they own their trademark, they can send a 'takedown notice' to the marketplace where the domain is being sold...
It won't force the company to transfer it over, but it will help in that the asset essentially becomes unsellable (at least on that platform).
It is possible to sue the cybersquatter if you're both in the US under the 'Anti-Cybersquatting Consumer Protection Act', however, so far this hasn't been successful.
So, our advice? If you have a company, or own some trademarks, buy up your ENS ASAP!
And to the person who purchased web3daily.eth, let's talk ;)
