Handshake takes decentralized networks and protocols to another level. With the new Handshake domains that offer outright ownership of a Handshake TLD (top-level domain), you can participate in the open naming platform with Handshake crypto. Learn about the value of Handshake coin (HNS) and how the combination of cryptocurrency and peer-to-peer root DNS management is embracing a decentralized internet.
What is Handshake?
Handshake is the latest in top-level domain naming. With Handshake TLD you’re able to own a customizable domain name with more security and no central authority. This uses a peer-to-peer system where the network participants validate domain naming and ownership, as opposed to using a CA (Central or Certificate Authority) that exists as a trusted third party.
Many internet users are realizing that CA’s can’t always be trusted due to hacking, phishing scams, and not having full ownership of TLDs. This is why influencers, brands, and other domain users can benefit from the security and full management with Handshake. You also get all of these unique features with Handshake that differs from traditional DNS (Domain Name System):
- You must install or use a gateway to resolve Handshake domains
- Unique naming and characters can be used in domain names
- Outright ownership of names with cryptocurrency bidding
- HNS – the handshake coin used for name registration
- No annual TLD fees
- No CAs (Certificate Authorities) that you may not trust
- More security with blockchain-based protocols
When you register a Handshake domain you’re not required to include personal data, so you get respect for your privacy. You also get more security with public-key cryptography that determines the ownership of names with a blockchain protocol. This means there’s no third party who has control over your Handshake domains and you can easily verify name owners by signing messages with a private key.
By running on blockchain technology, Handshake domains resolve with blockchain browser plug-ins. The blockchain protocol includes a digital record of every web transaction that can never be erased, and this ensures tamper-proof activity. To understand blockchain a little better, it’s useful to understand it’s biggest supporter —cryptocurrency.
Handshake utilizes blockchain for its decentralized DNS naming system and for name registration purchases. Handshake doubles down on its blockchain usage with HNS — the Handshake coin and cryptocurrency used for registering your unique TLD. To fully grasp HNS and the benefits of Handshake crypto, you should first understand the origins of cryptocurrency.
Cryptocurrency History and The Blockchain
Cryptocurrency is becoming a household name with its rise in popularity since Bitcoin’s launch in 2009. The foundation of cryptocurrency is the blockchain, which is a digital ledger of any participant’s records (blocks) and are linked using cryptography. The cryptography includes public-key encryption that validates transactions.
The blockchain was created by an unknown alias and Bitcoin creator, Satoshi Nakamoto. It originally served to provide an alternative to traditional financing by offering a decentralized digital currency. This paved the way for more cryptocurrencies to be created and other decentralized platforms, including Handshake.
Handshake mining is also similar to crypto mining. Cryptocurrency mining involves miners completing “blocks” (verified transactions) that are added to the blockchain, and these miners are rewarded with cryptocurrency. Handshake crypto mining works the same way for the person behind the computer involved in validating Handshake coin transactions.
The Purpose of Decentralized Currency
The benefit of a decentralized digital currency is that users don’t have to rely on a third party for transactions. With traditional financing, we trust banks to have some ownership of our money and handle all transactions. Satoshi identified issues with this including security risks, long processing times, errors, banking fees, and no outright ownership of your own finances.
With the goal of having a simple peer-to-peer network validating transactions, it’s just the sender and receiver of crypto that are involved in the transaction. The blockchain does the rest for you by keeping a digital record of every transaction that exists permanently and forever. The “proof-of-work” that cryptocurrency relies on enables smart contracts with participants and makes it very difficult for any aspect of the blockchain to be altered.
Blockchain technology has proven to add more security to transactions and ownership of a crypto wallet. You can now own a crypto wallet that holds different cryptocurrencies on your computer, with the crypto company itself, or with crypto wallet platforms such as Coinbase. This process can also decrease transfer costs that can typically add up with banks and other financial institutions.
Purchasing a Handshake TLD with Crypto
Now, other industries and services outside of finance are using the blockchain protocol to offer more security, usability, and other direct peer-to-peer benefits. Having cryptocurrency as the main source of obtaining a Handshake domain means that you don’t have any third party involved with the process. The Handshake protocol uses the basis of the blockchain protocol in crypto, which reduces the need for CA’s and banks.
It’s important to note that if you don’t want to get involved with cryptocurrency, you can still utilize traditional banking and payments for Handshake. Using HNS for registering domain names is perfect for those who want full control and decentralization. On the other hand, it can be more convenient and less of a learning curve if you would rather take advantage of a registrar.
The cryptocurrency used to purchase and register a Handshake domain name is called HNS. This mirrors how normal currency and cryptocurrency’s coins are 3-letter names, such as Bitcoin’s BTC or the United States’ USD. The Handshake coin price fluctuates like other currencies, and you can follow the Handshake CoinMarketCap to stay up to date on the Handshake value and Handshake crypto price.
Handshake participants use HNS to bid on domain names, which allows the community to initiate auctions. This process also prevents a sole person from owning all of the internet names. This provides the ultimate decentralized agreement of names and transactions.
You can spend and accept Handshake coins with a Handshake wallet, where you can store all of your HNS. The value of Handshake and HNS is accumulated through its network of users. By considering Metcalfe’s law, the network can take advantage of more benefits and value with an increase in the number of users in the network.
Handshake uses the same proof-of-work layer that cryptocurrency has to enable smart contracts between participants bidding on a Handshake domain name. Once you own a Handshake TLD you’re able to sell it or trade for other TLDs. You’re able to trade HNS with a Handshake wallet or utilize a registrar to help with bidding on a domain name.
This also allows you to bid on Handshake domain names that you want but someone else already owns. Once you bid or accept an offer for buying or trading your Handshake TLD, the public-key cryptography verifies the ownership and quickly authorizes the transaction. The participants then sign a message with a unique private signature to time-stamp and verify.
You can move handshake tokens around to register for any domain name. This involves a Vickrey-style auction process where you bid without knowing the other participant’s bids. The highest bidder obtains the domain but only has to pay the amount of the second-highest bid, meaning you don’t spend more HNS than needed.
Understanding cryptocurrency gives you a leg up when taking advantage of the functionality of Handshake DNS. Handshake crypto gives you a fully decentralized platform to create unique TLD’s with full ownership and the ability to buy and sell names. Blockchain technology is the key to achieving security with HNS and the Handshake protocol.You can still use USD and also don’t have to be tech-savvy to take advantage of Handshake. Encirca will help you register Handshake domains and provide resources on how to take full advantage of Handshake. Explore endless domain possibilities and security by registering a Handshake TLD with Encirca.