The Bright Side of Crypto Domains

The Bright Side of Crypto Domains

The Bright Side of Decentralized Domain Name System (Crypto Domains)

The domain name system (DNS) is a network of linked internet servers that allows users to easily find web pages and other online resources. This system also ensures that each website, server, and resource has its unique address, allowing them to be found on the internet. It is an essential aspect of how we utilize the internet.

The conventional web system operates in a centralized structure primarily overseen by ICANN through certificate authorities. They are in charge of the root zone of all domains, as well as the assignment of top-level domains to websites. This approach creates a monopoly in which ICANN effectively regulates the whole web system and has sovereign authority. A centralized system like this, however, poses a number of disadvantages when using Internet search engines and related services because such systems often prove restrictive and limited.

On the other hand, a decentralized domain name system distributes all information about websites by storing it in various locations simultaneously, as opposed to having one centralized server as with the traditional domain system. Also, instead of having a third-party intermediary store their data, this decentralized model allows individuals to retain control over their data and digital identities. Decentralization also implies that the system has no single point of failure, which considerably increases security. 

Since this idea of a decentralized domain name system gained traction, several decentralized naming protocols have emerged. Handshake, Unstoppable, and Ethereum domains are notable examples. The framework and dynamics of these naming protocols, however, vary slightly. Handshake stands out in particular because, like ICANN, it decentralizes the root zone and therefore appears to be more efficient. Overall, these crypto domains use Blockchain technology to create a decentralized system. Let’s take a closer look at the benefits of decentralized domain name systems:

Censorship Free

Decentralized domain name systems are based on Blockchain technology. This means that no single entity is in charge. As a result of this decentralized structure, users have the freedom to do whatever they want with their domains. As long as they have acquired it, it cannot be taken away, restricted, or suspended, which is not the case in a traditional domain system.

The point is that a decentralized system has no restriction, censorship or regulation. As a result, individual users can publish whatever content or information they choose to, without fear of restriction from regulating bodies such as ICANN.


Unlike the traditional domain name system, where anonymity is virtually impossible, decentralized domain names provide enhanced anonymity in which users’ identities are untraceable. For example, when purchasing a crypto domain, there is no need to provide any personal information. As a result, your identity is more protected.


The blockchain protocol on which decentralized domains are created is exceptionally secure. This is because the blockchain is dispersed among several nodes, so there is no single point of failure or control. Therefore it is virtually impossible to hack or breach. It also guarantees data security because it does not require third-party authorization for access. This means that no one other than the users can access their data. 

Permanent Domain Ownership

Most decentralized domain protocols only require a one-time payment to secure the permanent right to a domain name. In fact, handshake particularly offers permanent ownership to top-level domains through an auction system. Unlike in the traditional domain system, where it requires a $200000 application fee, which may or may not be granted, a one-time acquisition of a handshake TLD guarantees permanent ownership.  

Maintaining domain ownership in the traditional domain system necessitates an annual renewal fee. So it’s more like a lease than full ownership. Since ICANN has censorship authority, they can revoke ownership rights to such a domain if they have reasons to believe that the owner is not following their guidelines. 

Overall, decentralized domain name systems make domain ownership more affordable while simultaneously ensuring permanent ownership.

Unlimited TLDs

Access to TLDs is not only constrained under the centralized system because of the expensive application fee but also because of the limited amount of TLDs available. However, with a decentralized domain name system, the acquisition of the unlimited available top-level domains becomes easier and less expensive. Although most notable decentralized domain name systems like ethereum and unstoppable domains do not offer TLDs, naming protocols like handshake domain and Namecoin do. 

Handshake, however, appears to be the better alternative because it employs Simple Payment Verification (SPV) proofs, which Namecoin lacks. Handshake domains allow users to bid on any TLD through an auction-based system. The number of available TLDs is limitless; even emojis and special characters can be used as TLDs. 


Another benefit of using blockchain technology as the foundation for decentralized domain name systems is that the system is transparent, public, and open. This transparency adds an element of accountability to blockchain transactions, encouraging individuals to be the best possible version of their honest selves, at least when using the blockchain. As a result, the chances of effectively carrying out a nefarious act are limited.


Crypto domains are built on the principle of decentralization, which is the most significant advantage it offers. It is as a result of the decentralized nature of these crypto domains that they can be transparent, independent, secure, and free of any constraints. 

Other decentralized name systems, such as unstoppable and ethereum domains, do not provide complete decentralization because they do not issue TLDs. However, they issue second-level domains (SLDs), which are still decentralized to a great extent. Handshake domains, on the other hand, take on ICANN’s complete role by issuing blockchain-based TLDs and decentralizing the root zone domain. This way, it provides complete decentralization. 


There are quite a number of crypto domains available at the moment; each with varying degrees of decentralization. They provide enhanced security, privacy, transparency, and many other benefits that are set to profoundly change the paradigm of the web system.


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