Handshake challenges ICANN by releasing 73,000 decentralized domains

Handshake, the parallel DNS rivaling ICANN

A Bitcoin fork launched in 2020 manages top-level domains instead of currency. Called Handshake, it offers a central-owner-free internet directory, an alternative to the ICANN-controlled DNS since 1998. Four years later, the project has compatible browsers, exchanges, an ICANN report, and a community debating whether this is critical infrastructure or a speculative domain graveyard.

The key figure isn't the token price, but the 73,000 reserved names left unclaimed and released in 'The Happening.' This expected catalyst hasn't proportionally moved the hashrate or volume. Adoption is advancing, but at a pedestrian pace.

What is Handshake and how it differs from ICANN DNS

Handshake is a Bitcoin-derived blockchain allowing ownership and transfer of TLDs without registrars or central authorities. Unlike the hierarchical DNS managed by ICANN, names here are auctioned and resolved via consensus. The comparison is an alternative 'telephone directory': the official one is built into all browsers; Handshake requires activation.

Three access methods exist. The recommended is Fingertip, open-source software syncing with the blockchain for Chrome, Firefox, or Brave. Second, adjusting the OS DNS. Third, using compatible browsers: Beacon, Carbon, Masq, Opera Crypto, Puma, or Aloha. Each involves trade-offs between convenience and sovereignty.

Vickrey auctions, bridges, and the custody problem

Adjudication uses a Vickrey auction: the highest bid wins but pays the second price. Two amounts matter: the real one (lost if you win) and the blind one, deterring competitors. Serious bidders know the system is automated, but secondary sales occur on platforms like Namebase.

Custody is the weak point. Bob Wallet is the reference for self-custodying domains and coins, desktop-only and open-source. FXWallet covers mobile but isn't open. The repeated advice is not to leave names on exchanges: if the platform fails, the domain falls with it.

ICANN has reviewed Handshake: what its report says

ICANN published a report from its Office of the CTO analyzing alternative name systems. It includes Handshake, ENS, Namecoin, and Unstoppable Domains. The community concludes only Handshake is a complete DNS; others are partial layers. The document isn't a declaration of war but acknowledges formal competition to the monopoly.

Industry response is uneven. Namecheap, the world's second registrar, acquired Namebase, the main Handshake domain exchange. TopLevelDesign, owner of .lgtb and .wiki, claimed its TLDs on the network. Opera confirmed integration, Aloha executed it. Brave, according to its CEO, assumes no cost for now. Adoption is real but fragmented.

The HNS token: miner liquidity and contained speculation

HNS is mined with a 1,000 coin incentive per block, yielding about 144,000 coins daily. This is practically all available liquidity. There is no marketing team, no public roadmap, and few listing exchanges: Gate.io, MEXC, Coinex, Tradeogre. The result is an asset that moves little, and when it does, it does so for specific events.

The first halving is scheduled. The community trinc it with profitability calculators. The relationship between hashrate and price isn't perfect, but the trend holds: if the price rises enough, idle miners wake up. Meanwhile, the 'accumulation' narrative coexists with 'domain graveyard.' Both have supporting data.

The future: decentralized SLDs and the shadow of speculation

The next discussed step is decentralizing second-level domains, not just TLDs. The gaining idea is anchoring Handshake to the Ethereum Virtual Machine to manage SLDs, keeping the base layer clean and focused on TLDs. It's an open debate with serious technical implications.

The recurring criticism is the usual one: as soon as a useful idea fills with holders and domain hunters, it becomes a speculative product. Project defenders argue the market is sovereign and domain speculators existed at the dawn of the internet. The discussion hasn't closed, nor does it seem likely to soon.