The gateway to Web3 understands the decentralized domain name protocol

The crypto industry is facing strict regulatory review from different countries, including the “Encryption Tax Report” of the $1 trillion infrastructure bill, restricted access to the front end of Uniswap equity tokens, and a ban on cryptocurrencies from China.

Regardless of whether the regulator adopts a proactive or strong attitude, the government may soon implement a review of the cryptocurrency industry to prevent the threat of “super programmers in the shadow”. In my personal view, regulators should expand their capabilities. And support the potential of new technologies. 

The charm of blockchain lies in its inherent characteristics of decentralization and immutability, which make it resistant to censorship. Censorship resistance refers to the exercise of our right to control our own data, which can only be achieved if we have blockchain technology.

Now we are entering a new revolution that changes the way the Internet is used by rebuilding the Internet’s infrastructure. At present, several WEB 3.0 infrastructure protocols are working hard to power the autonomous Internet so that users can own their own data, such as IPFS, Arweave (AR), Filecoin (FIL), and so on.

According to Ethereum.org, Web 3.0 (also known as Web3) “…refers to decentralized applications running on the blockchain that allow anyone to participate without having to transfer them To monetize your personal data. “

Kyle Samani of Multicoin perfectly captures the current state of the Web3 ecosystem through the following Web3 stack diagram:

The gateway to Web3 understands the decentralized domain name protocol

The purpose of this article is to introduce the Decentralized Domain Name System (DNS) protocol, which is the gateway to WEB3.

The four popular decentralized DNS protocols are:

Ethereum Naming Service(ENS)

Handshake (HNS)

Unstoppable Domain (UD)

Sleep. (Sleep)

First of all, why should we care about the blockchain-based domain name agreement?

DNS is the domain name system on the Internet. You can think of DNS as a lookup system similar to a phone book directory, where you can provide a name and obtain information related to the name, such as phone numbers and addresses.

Before DNS, the original address used on the Internet was an Internet Protocol (IP) address, which is a numeric identifier associated with hosting sites and location addresses. Taking 104.26.2.33 as an example, the freecodecamp.org URL can be mapped using DNS To the IP address of 104.26.2.33.

The current DNS system is managed by domain name registrars (such as Verisign, GoDaddy, and Namecheap) and DNS management service providers (such as Cloudflare and AWS).

Almost all Internet participants rely on these centralized DNS providers. However, the nature of being managed by authoritative entities has led to high levels of censorship and cyber attacks. Here are three famous examples:

· On March 15, 2021, the DNS of the CREAM (CREAM) protocol was hijacked. The attacker compromised the GoDaddy account of the protocol and redirected it to a phishing page. After 7 hours, the domain name was taken back and the funds were not affected.

· In 2017, a hacker hijacked Etherdelta’s DNS name server and took away $250,000 worth of ETH.

· Some countries and regions implement DNS blockade to control online content that is of national interest. For example, Turkey banned its residents from accessing Twitter in 2014.

What are the top-level decentralized domain name agreements?

The four leading blockchain naming system projects are Ethereum Name Service (ENS), Handshake (HNS), Unstoppable Domain and Y.at.

The following is an overview of each agreement:

1. Ethereum Naming Service (ENS)

Main purpose: ENS is to map machine-readable identifiers (such as Ethereum addresses and IPFS hash content) to human-readable names.

For example, the Ethereum address (for example, 0x4Cdc…) is mapped to CoinGecko.eth

It is similar to an Internet domain name, such as http://www.coingecko.com/, which is then mapped to the IP address of the server hosting CoinGecko.

Property: ENS is built on the Ethereum blockchain and benefits from the security of the network. All .eth registrations of ENS comply with the ERC-721 standard, which means they are transferable NFTs.

Although they are built on Ethereum, they support tokens from 109 blockchains, which means that ENS holders can receive non-ERC20 tokens such as BTC, DOGE, and SRM. Ownership is not permanent, as there will be a renewal fee when it expires.

2. Handshake (HNS)

Main purpose: Handshake is the decentralized counterpart of ICANN.

In essence, the main goal of Handshake is to create and release ownership of top-level domains (TLDs) in a decentralized manner. With its native token HNS, users can purchase TLD rights through the auction system on Namebase (Namebase is a registrar that runs on Handshake).

Properties: Handshake is a blockchain with similar properties to Bitcoin, including its consensus algorithm (proof of work) and confirmation time (10 minutes).

The TLD purchased on Handshake has a default life cycle of 2 years and is updated every two years.

3. Unstoppable Domain (UD)

Main purpose: Similar to ENS, the function of Unstoppable Domain is to map machine-readable identifiers such as IP to its pre-existing TLDs (.x, .crypto, .coin, .wallet, .bitcoin, .888, .nft,. dao, .zil and .blockchain).

Attribute: Unstoppable Domain is built on Ethereum and Zilliqa, and the domain names issued are minted as NFT (ERC-721 and ZRC-1 respectively).

You will not be able to access the domain name through a standard browser. However, you can use its extension or a browser that supports the blockchain domain to achieve it. Currently, UD supports more than 270 currencies (including non-EVM chains).

Unstoppable Domain does not charge an update fee.

4. Y.at

Main purpose: y.at is a centralized provider that sells emoji sub-directories.

Each yat contains a string of up to six emoticons. You can use your y.at link to point to anything you want, and it currently behaves like a link shortener. In addition, you can also treat yat like Linktree. The yat team claims that yat will expand its functionality as it grows.

Attributes: yats are located in a central registry controlled and operated by the US Emoji ID, LLC DBA Yat Labs.

Starting in late July, you can now mint your y.at as NFT (ERC-721) through its dashboard, and you can buy them on secondary markets such as Opensea. With its recent launch, users can now cast their yat as NFT.

However, it should be noted that you must purchase yat before casting. In addition, you currently cannot receive cryptocurrency from yat, and Y.at does not charge an update fee.

Are these domains/subdirectories considered as NFT?

Yes, except Handshake, which publishes TLD on its own chain, all domains published by the naming protocol comply with the ERC-721 standard.

Ethereum is an exception, UD publishes names on the Zilliqa chain, and they conform to ZRC-1 (NFT standard).

As for Yat, it has registered more than 100,000 names, but only 2% of people minted their Yat on Ethereum (because you need to buy off-chain names before minting).

Can the domain name be transferred?

Can! They are NFTs, so they can be transferred according to the chain they are on.

On the other hand, not all registered emoji strings in Yat are NFTs. You can assign the email of the new owner through the dashboard to transfer these emoji sub-directory names to anyone. Other than that, the cast yat can be treated like any other ERC-721 NFT.

Normally, it is not possible to access all domain names registered on the blockchain through a standard browser. However, you can use the naming protocol to connect to IPFS (Decentralized File Storage Network) to access it.

Except for Yat, you don’t need to access them on IPFS because they are running on a centralized TLD and on-chain data mapping has not yet been launched.

Domain name agreement comparison

The following table outlines four popular domain name agreement protocols:

The gateway to Web3 understands the decentralized domain name protocol

Let’s take a look at 4 key points/statistics next and see how they perform:

1. Cost/Ownership

If you buy a domain name from ENS and Handshake, you are actually renting the domain name. You need to renew the subscription on the specified expiration date or you will lose ownership of the domain name. The domain names on UD and yat are purchased once, and they will always belong to you.

Among all naming protocols, only Handshake is not compatible with emoji id.

2. Scalability

HNS is the most scalable of all naming protocols , because it runs on its chain for only one purpose: to provide a root zone file that replaces ICANN.

As for other naming protocols, ENS and UD rely on the Ethereum chain. Although it is good for security and composability, their casting cost and process are also affected by Gas fees. Although ENS only costs US$5 per year, which contains 5 characters and above, the cost of Gas fees can be as high as US$60 or more.

As for y.at, their goal is to gain momentum as a centralized naming service before transitioning to a fully autonomous domain name service.

3. Number of registered domain names

To observe whether the domain name service is being adopted, one way is to look at the number of registered domain names on each agreement.

The gateway to Web3 understands the decentralized domain name protocol

The figure above shows that HNS has the highest number of registered domain names so far, followed by UD, ENS and yat.

But we must emphasize that a user can create multiple domain names, which will exaggerate the number of registered domain names. Although I cannot find active users for each protocol, I will use a different proxy for each named protocol.

ENS has 300,000 registered domain names and 101,000 unique addresses. 

HNS has 1.6 million registered domain names and 110,000 active Handshake domain names.

UD has more than 1.2 million registered domain names and 730,000 declared addresses.

Yat has more than 100,000 registered subdirectories (emoji id) and only 23,000 unique Ethereum addresses.

It is true that the above indicators cannot be compared with each other. However, using these numbers as a proxy can give you a better understanding of the adoption rate of each domain name service.

Next, take a look at the Ethereum chain. The figure below shows the number of newly created domains per month.

The gateway to Web3 understands the decentralized domain name protocol

August data as of August 12, 2021

The picture above shows that more ENS is being cast, reaching its peak in June 2021. At the same time, the growth of UD has slowed.

On the other hand, starting from July 30, 2021, as part of its newly launched casting function, the number of newly minted yats has soared.

4. Integration

In addition to domain name registration, there is a better way to measure the domain name agreement-check the number of integrated applications, integration can reach a wider audience and increase outreach and use.

ENS has nearly 300,000 registered names, has more than 250 integrations and applications , including top wallets (such as Metamask and Argent), top exchanges (such as Uniswap and Coinbase), and popular browsers (such as Brave and Opera).

UD has 1.2 million registered names, but only 73 integrated. They have native integration with Brave and Opera browsers. Some wallets that use them are Coinbase and Huobi Wallet. However, they are not supported by Metamask.

HNS reflects the content on the traditional Internet, and they operate natively on their chain. 

The only function of Yat now is to redirect the URL to a defined path or its own biotool link page. You can access the content by typing your emoji on the URL bar of the Opera mobile browser. The mapping of the data on the chain is not yet available.

Other naming agreements worth mentioning

Solana domain name

The Solana naming service is similar to ENS. It is a native service on the Solana chain established by the Bonfida team.

It uses .sol as the top-level domain name, and maps SLD names to off-chain and on-chain data, such as SOL addresses, Twitter handles, and content on IPFS.

Domain name registration is carried out through the auction system, with a minimum starting price of US$20. Unlike ENS, your domain name will stay with you forever, no renewal is required. 

PolkaDomain

PolkaDomain is a domain name protocol built on Polkadot.

It not only has the functions of a registrar, but also provides advanced functions such as domain name market, cross-chain transactions, and address anonymity. In addition, it has a utility token called NAME, which can be used as currency to purchase domain names, transaction fees, transaction domain names, and governance.

Please note that the Polkadot chain is not live yet, so none of the products on Polkadomain are live. 

THORnames

THORnames service is the native domain name protocol of THORchain. Its function is similar to UD, which can map human-readable names to machine-readable identifiers. It can accept currencies from multiple chains, including EVM and non-EVM chains, such as Ethereum and Bitcoin. The agreement has not yet been launched.

Concluding remarks

The declaration of WEB3 to break away from WEB2 is gradually becoming a reality. 

The Domain Name Protocol has already been adopted by the “indigenous people” of cryptocurrencies, and it will continue to grow as the user base that requires simple manipulation of the ever-growing distributed network grows.

Many projects are currently building Web3 infrastructure to handle work in areas such as wireless networks, oracle databases, storage, and video coding.

As described by Kyle’s WEB3 stack, it has four levels, each with unique structural complexity issues and challenges. In the end, these WEB3 infrastructures will smooth out these obstacles and completely make the WEB3 stack a reality.

In view of this situation, the existing login or registration system has gradually reduced the reliance on email addresses. For example, now you can use Facebook or Google credentials to create new accounts on any website.

The “indigenous people” of the digital age and cryptocurrency are quite familiar with this interoperability. All the time, whenever we want to use a decentralized application, we use the wallet to approve the login.

The Domain Name Agreement will become your Internet identity.

In the past two weeks, we have seen the NFT 2.0 season, and this time more people have replaced their social media profile pictures with their own NFT.

People increasingly prefer to use virtual avatars as their main identity. Soon, we may see the connection between NFT and decentralized domain names, as suggested by the CEO of Zapper (DeFi dashboard).

The gateway to Web3 understands the decentralized domain name protocol

The domain name agreement is not only the key to identity on the chain, but also the gateway to WEB3. 

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-gateway-to-web3-understands-the-decentralized-domain-name-protocol/
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