The emergence of blockchain-related projects in the domain name system (DNS) and domain ecosystem has caught the attention of enthusiasts in the blockchain space. One project, Handshake, is garnering particular interest for its potential to revolutionize the way people think about and interact with domains, especially in the context of Web3.
A Handshake (HNS) domain is a decentralized, permissionless naming protocol that enables peer-to-peer communication and provides an accessible alternative to centrally managed domain names like .com, country-code domains, and other generic domains.
Handshake aims to serve as an alternative to the current default root chain of the DNS by functioning as a decentralized peer-to-peer domain naming protocol. Currently, the creation of top-level domains (TLDs) such as .agency, .gov, .edu, and others is managed by the Internet Corporation for Assigned Names and Numbers (ICANN) through an application process.
The current process of applying for a new TLD is tedious, complex, and expensive, not to mention highly centralized. This centralized system is susceptible to hacking, corruption, and censorship. Handshake seeks to change this by providing more efficient, affordable, and secure alternative top-level domains that bypass the ICANN system. The goal is to use blockchain technology to build a more decentralized domain landscape online.
Compared to the traditional DNS, Handshake operates similarly, with the only difference being the root zone file that the internet trusts and reads from. Therefore, a Handshake-aware resolver is required in the resolution chain for HNS domains to be resolved.
The intention is not to entirely switch to the Handshake root zone, as this would render current TLDs like .com useless unless they are also claimed and recreated on the Handshake blockchain, which is unlikely to happen soon. Handshake has reserved existing TLDs for managing organizations to claim over the next three years, ensuring compatibility with the decentralized root zone.
A Handshake domain works by distributing website addresses through auctions facilitated by Handshake’s software. These auctions take place every two weeks, and participants bid using the Handshake protocol’s cryptocurrency, HNS. The winner of the auction pays the second-highest price following the format of a Vickrey auction, ensuring fairness and efficient allocation of domain names.
The Handshake blockchain operates similarly to the Bitcoin (BTC) blockchain, with miners running the Handshake software and competing to unlock newly minted HNS tokens by solving mathematical puzzles. New blocks are added to the blockchain every 10 minutes, and miners are rewarded with 2,000 HNS every 10 minutes of mining. The maximum supply of HNS is 2.04 billion.
Handshake domains have various use cases, including selling subdomains, secure logins, URL shortening, decentralized content hubs, creating email addresses, building websites, and using Handshake names as usernames on social networking sites. Domain registration for Handshake domains can be done through domain registrar Namecheap, which offers registration services for Handshake domains and supports various TLDs.
To access a Handshake domain, specialized software or browser extensions like Fingertip, HDNS.io, HNS.to, NextDNS, or VPNs are required, as they do not resolve on regular web browsers.
Using Handshake domains offers advantages such as enhanced privacy and control, flexibility in domain name usage, and the ability to participate in domain name auctions. As the push for a more decentralized internet continues, decentralized domain name system services like Handshake may be considered more stable and resilient to domain name hijacking or server outages.
However, there are drawbacks to using Handshake domains, such as the requirement of HNS coins for participation in auctions or use of other services, which may pose barriers to entry for non-tech-savvy users. Additionally, alternative domain names can be more complex to set up and use compared to traditional domain names, and their adoption has yet to penetrate the mainstream.
The future of Handshake domains lies in the move towards Web3 blockchain domain name systems, which aim to provide users with simpler, shorter domains that can easily be used online. Handshake domains may be used to represent blockchain addresses, making it more convenient and user-friendly. Handshake aims to offer users better control of their data, security, and privacy while keeping the internet decentralized.
However, the accessibility of Handshake domains may become an issue, as registration and browser support are still primarily controlled by the traditional infrastructure. Potential conflicts with ICANN TLDs could also complicate domain usage. The resolution of these issues and the widespread adoption of services like Handshake remain uncertain and will only be revealed with time.