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Handshake Brings Decentralization to DNS

Handshake, a revolutionary blockchain-based service, has made a splash among the crypto community. Handshake allows users and companies to own their domain name without relying on a centralized domain name system (DNS) provider. 

The domain name system is the backbone of the internet, often referred to as the internet’s phonebook. Each website address you visit when browsing is a domain name, which someone manages and pays for. The internet is essentially the combination of all domain names out there. Domain name systems help manage who owns what in terms of websites and IP addresses.

Currently, most DNS providers are regulated by ICANN, the Internet Corporation for Assigned Names and Numbers. This means that while there are hundreds of DNS providers out there, one central regulatory body has the majority control over DNS.

What does Handshake bring to the table?

Handshake revolutionizes the internet phonebook by bringing blockchain technology to it. With Handshake, domain names become a part of a decentralized system, where anyone can own a top-level domain name (like .com, .org, and .net) without the forceful glance of the ICANN on their back. 

Decentralization is one of the blockchain’s fundamental traits, which is why Handshake turns to this technology to help democratize the DNS industry. By allowing users to record their purchase of a domain name on the Handshake blockchain, the service essentially puts control back into users’ hands. Top-level domain names are under the control of big organizations like Google and Facebook, which simply lend out the name to interested users. With Handshake, users have true ownership over their website domain. 

How does purchasing a domain name on Handshake work?

Handshake is designed to further the reach of DNS services. The platform incorporates all of the already created domain names and allows users to purchase domains that do not yet exist on the web. 

There are two main ways in which users can purchase a domain name on Handshake – buy it directly, or participate in an auction for it. Both of these methods require users to have HNS tokens, the native cryptocurrency of the Handshake blockchain. You can purchase HNS with BTC, or with USD if you are located in the United States. 

Purchasing a domain name straight away is easy. You need to deposit the required amount of HNS and then fill in the desired domain name. If the domain does not have an owner, users can start an on-chain auction to mint the domain by placing a bid. If someone minted the domain, users can purchase it from the owner if the owner has decided to list it on Namebase’s secondary marketplace.

However, if you want to buy a domain name that is on auction, you will have to participate with a bid. Bidding for domain names happens with HNS. The user that offers the highest bid receives access and ownership over the domain. In the event that there’s a tie for the winning bid, a random winner is selected out of all bidders with the winning amount. 

Flipping domain names 

Prime domain names have been an asset since the creation of the Internet. Owning valuable top-level domains like insurance.com, for example, can be very lucrative. Flipping domain names can be a great way to get your hands on some passive income.

Imagine that you own insurance.com, and a large insurance company is looking for a new domain name. You have the perfect one. However, to relinquish control over it, you request money. Depending on the popularity of the domain name, this can be a rather nice opportunity to double or even triple your investment. 

An impressive example of exhorbitant gains is the last sale of the banksy/ domain. In April this year, it sold for 69,696 HNS, which represented a 9,716% gain from the original mint price. 

Handshake offers yet another blockchain-based investment opportunity. As a relatively new platform, there are plenty of unclaimed domains waiting for their new owner. This is a great opportunity to get in early while the project is still in its infancy. If you’re curious to learn more about flipping domain names, you can check out this article

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 17.09.2021

Hotest Cryptocurrency News

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