In order to grasp the importance of online Domain Names we must first understand what they are in a technical sense. A Domain Name is a chain of alphanumeric characters by means of which an IP address is translated. Technically the Domains identify computers connected to the Web, interpreting IP Addresses and allowing their easy location and providing a friendly way to use the Internet.
The registration of a Domain Name grants its owner the right of its exclusive use as an IP address or means of identification.
Even though the registration of domain names is carried out by accredited Internet registrars, the entity responsible for the technical management of the domain name system is the Internet Corporation for Assigned Names and Numbers (ICCAN).
It is before the ICANN where domain name owners may enforce their rights over the Domain if they are being infringed. This is done through the ICANN´s Uniform Administrative Dispute Resolution Policy (UDRP).
E-commerce has grown exponentially and completely exceeds the income figures for traditional commerce. This is due to the fact that everything is made easier for the customers on-line.
Thus the phenomenon of e-Commerce has given domain name a broader concept, creating in them a truly distinctive function and this is where the importance of Domain Names lies.
As with the trademarks, all kinds of companies, people, products, services, etc are also identified using domain names. The actors in e-commerce seek to distinguish themselves from their competitors, be recognized and broaden this market or attract more of it. All this is achieved through the positioning of your their domain names.
Added to the above, the ease with which information is shared and located on the Internet and the number of consumers who access it, makes e-commerce players worried about having their space, identity and information on the Web and this is also achieved by registering their Domain Names.
In conclusion, the registration of a domain name, assures its owner the exclusive use of the Domain, mechanisms to enforce the rights to the Domain and the opportunity to position and expand its market by being available to millions of potential customers that can have immediate access to its information.