question Why do we still need a trusted third party to sell our domain names in 2025 ?

[Weboo]

Since selling a domain name is simply an exchange between an auth code and an money amount, any basic bot can do it. It could also be done via smart contracts on Ethereum for more than 10 years. So why do we still pay so many fees to third-party companies to sell our domain names ? Isn't there a computer scientist who could create a automated system so that domainers can sell their domain names without (practically) paying fees ?

 

[biggie]

Since selling a domain name is simply an exchange between an auth code and an money amount, any basic bot can do it.

Hi

if, it was that simple, then bots would have been doing in years ago

you need an agreement first, and that has to be done thru a medium, if not in a face to face conversation.
when that medium also can facilitate the transaction and transfer, then why go somewhere else?

third party platforms have built trust among domainers/sellers/buyers and that's the basic reasoning/rationale for continuing to use them.

imo...

 

[Weboo]

you need an agreement first, and that has to be done thru a medium

I always do the deal outside of platforms. I have my domain names on landing pages, I do the agreement with buyers through email exchange. I only use third-party platforms for the sale and transfer of domains. I think that this transaction could be done with smart contracts on Ethereum, for example.

 

[bmugford]

I think that this transaction could be done with smart contracts on Ethereum, for example.

Well, right now it is not really compatible with ICANN rules and regulations.

They have their own process when it comes to ownership. What the blockchain says doesn't really matter.

I doubt ICANN is going to move anytime soon on this.

The average person barely knows how domains work. Way less know anything about smart contracts.

I think it would be way more complex to explain to the average end user how to use a smart contract than just how to receive the domain at GoDaddy or whatever.

Brad

 

[MKA]

Since selling a domain name is simply an exchange between an auth code and an money amount, any basic bot can do it. It could also be done via smart contracts on Ethereum for more than 10 years. So why do we still pay so many fees to third-party companies to sell our domain names ? Isn't there a computer scientist who could create a automated system so that domainers can sell their domain names without (practically) paying fees ?

• There are over 2,400 domain registrars across the word, with their own infrastructure.
• This is further connected to the infrastructure of the registries which are incredibly secure.
• Transferring a domain takes roughly a week if not expedited (and not all registrars offer this) and during such a transfer the transfer can be cancelled, or the domain locked to prevent the completion of the transfer.
• You want guarantees on both the buyer's and seller's end. So that there's no chargeback or dirty tricks.

So while it's theoretically possible, it would take a lot of effort to implement and sustain. A lot of API calls, a lot of security infrastructure would be required to prevent abuse, and of course a lot of legal documentation.

At some point you'll realize that it's just cheaper (and more secure) to run it through a real person on escow.com.

 

[MKA]

I think that this transaction could be done with smart contracts on Ethereum, for example.

Smart contracts are too limited in size to manage such a transfer with all the API calls and security mechanisms.

On top of that, most people don't care about cryptocurrencies. Imagine trying to coax a CEO of a serious business into buying Ethereum (with all the crypto scams going on in the space) and then expect him to navigate the maze just to learn about gas fees and whatnot.

With escrow.com you pay at most 5% anyway for their concierge service, and you get an actual professional to verify the transfer on both ends with an order confirmation backed by Escrow. And when you're dealing with something as precious as the domain for your business you don't want to take any risks.

 

[biggie]

I do the agreement with buyers through email exchange.

Hi

email and phone calls are both mediums to reach an agreement, but you still need that third party.
and in every case, both parties will have to rely on their respective registrars to do their part.

imo...

 

[Weboo]

What are all the third party platforms that are currently available ?
I already know :
Escrow
Sedo
Afternic
what are the others ?
Thanks to everyone who responded.

 

[DomainNature]

The problem is that end users no matter who they are representing, themselves or big companies, they are worried what if they pay but don't get the domain, then the seller is worried what if they transfer the domain then don't get paid, the reason why is because they need a trusted intermediary to do both things and it is better to be done through a popular platform such as Afternic, Escrow, Atom, Sedo etc.
One may do it without such 3rd parties, such people I think are the top domainers like Rick, Abdul, Swetha etc, which have established trust world wide, but still I think they use 3rd parties in some/most cases.

 

[DediRock]

Third-party platforms offer security, escrow, and exposure. Blockchain could reduce fees, but adoption is slow. Trust and buyer confidence keep third parties relevant.