Handshake is a peer-to-peer network set to develop a more decentralized internet. It’s a permissionless naming mechanism based on blockchain technology. The main idea behind Handshake is decentralization, that is, relieving centralized entities of their total control by creating an alternative system that distributes that control equally among users.
The current internet system, known as web 2.0, functions under the control of certificate authorities who have censorship ability and absolute power over users’ online presence and data. Major powerhouses like ICANN virtually control the whole internet system because they are in charge of the domain root zones and top-level domains. The obvious problem with this centralized approach is that it allocates too much authority to a single entity, resulting in a system with a single point of failure that is vulnerable to cyber-attacks.
Handshake tries to tackle this problem by creating a decentralized system in which the domain root zone is decentralized, and top-level domain issuance and management are unrestricted and decentralized. As a result, a more secure, autonomous, and anonymous system is created, and greater privacy and control are guaranteed for users.
Prior to Handshake, there were a host of other self-proclaimed decentralized systems that emerged, all in an attempt to tackle the centralization problem. However, none of them has been as promising as Handshake because the majority of them cannot provide the absolute decentralization that Handshake can. The majority of the previous decentralization solutions also failed due to spam, a problem Handshake has also addressed by creating a decentralized system that is resistant to Sybil attacks.
Moreover, there are two sides to the Handshake system: the handshake domain names and the handshake coin (HNS). Since the domain aspect of Handshake is such a vital part of the system, many individuals are only interested in the domain names and not the HNS coin. The HNS coin, on the other hand, is as significant because it is the official currency of the Handshake community.
The HNS coin is also comparable to other crypto assets such as Bitcoin. It is the official currency of the Handshake community, and users use it to conduct transactions such as bidding for top-level domains during auctions. Participants can also utilize it to register, transfer, and update Handshake domain names. Aside from facilitating transactions, one of the importance of the coin is that it helps prevent spam on the peer-to-peer network. Furthermore, by introducing a currency whose value is drawn from the network of users, Handshakes effectively decentralize money in addition to its core purpose of decentralizing the internet.
Tokenomics is a term used to describe the economics of a token, which covers its value, use, supply and demand, and so on. It is a cryptocurrency component that crypto investors and traders must evaluate before investing in a new cryptocurrency. Another important feature of tokenomics is the maximum supply of coins available at the start of the project and their distribution. This maximum token supply is the overall number of tokens coded to exist over the cryptocurrency’s lifetime. A major coin, such as bitcoin, has a maximum supply of 21 million units. In the case of Handshake, the maximum coin supply was 1.36 billion HNS coins, on top of the 680 million that is available to be mined.
The total initial supply of HNS, including the mineable coin, will therefore be 2.04 billion. Moreover, after the first five years, only 60% of the mineable coin will be available for mining. Also, only 70% of the initial supply was available for the airdrop. This portion of the coin was made available to be claimed by developers and contributors to the Handshake community.
In exchange for the ten million dollars they invested, investors were granted a share of the airdrop to claim. However, based on the system’s structure, no single entity holds more than 1.5% of the overall supply of HNS. The HNS coin can be purchased in addition to being claimed via airdrop or mining.
How to Buy HNS
Purchasing a crypto asset always entails a lot of factors, one of which is the value. Some cryptocurrencies are also more difficult to obtain than others, particularly if they are not widely used or popular.
Currently, the HNS coin is worth 0.0367 USD apiece. Namebase is one of the main platforms where users can get to buy HNS coins. For US citizens, the easiest way to purchase HNS will be direct with USD. Bitcoin is another purchase option that is available to everyone. However, to purchase HNS on Namebase, users must first acquire BTC from another platform, such as Coinbase. The purchased BTC will be transferred to the user’s Namebase account, which can be used to buy HNS. Namebase also allows users to bid for their top-level domains as well. You can visit https://www.namebase.io/register/yw2yl to claim your Handshake domain.
Apart from being a means of acquiring top-level domains, a name auction is also an avenue to burn HNS coins. Burning cryptocurrency is the practice of removing tokens from circulation, lowering the overall quantity of that coin and, in certain situations, raising demand. The auction procedure typically involves a series of bids for a specific top-level domain, with the highest bidder winning and claiming the domain.
However, Handshake operates a Vickrey auction process, which means that the highest bidder ends up paying the second-highest price at the end of the auction. However, unlike the centralized ICANN system, the total amount of HNS paid for the top-level domain is not paid to any one body or central entity. Instead, the paid HNS coins are immediately burned, thus reducing the overall available supply.
The HNS coin is a critical component of the Handshake project. It is the native token of the Handshake community and is primarily used for purchasing top-level domains and other transactions within the Handshake network.