Handshake Domains Guide: Decentralized Top-Level Domains Explained | DomainGlossary.com

The Domain Name system has one fundamental limitation: ICANN controls which top-level domains exist. Want to operate a .bank, .secure, or .crypto TLD? You need ICANN approval, a formal application process, and fees that start at $185,000. For most of the internet's history, this was simply how things worked.

Handshake changes the equation. It's a decentralized naming protocol built on its own blockchain that allows anyone to own a top-level Domain Name outright — not lease it from a Registry, but own it at the protocol level — without any central authority's permission.

This guide explains how Handshake works, how to acquire and use HNS names, and what the real investment and utility picture looks like in 2024.

What Is Handshake?

Handshake (ticker: HNS) is an open-source blockchain protocol launched in 2020 that functions as a decentralized alternative to the DNS Root Zone — the authoritative record of every top-level domain on the internet.

In the traditional internet, the DNS Root Zone is maintained by ICANN and operated by Verisign. When you type "google.com," your computer queries a chain of DNS resolvers that ultimately trace back to this root zone to find the authoritative Nameserver for ".com."

Handshake replaces the Root Zone with a distributed blockchain. TLD names (like ".google" or ".alice" or ".xyz123") are auctioned and sold as blockchain assets. The owner of a Handshake TLD controls it completely — they can create second-level domains under it (e.g., "mysite.alice/"), set nameservers, and sell subdomains, all without ICANN involvement.

The Handshake Naming System

On Handshake, what traditional DNS calls "domains" are actually top-level domains. When you "buy a Handshake domain," you are buying ownership of an entire TLD.

Examples:

You buy the name "camera" on Handshake. You now own the .camera TLD equivalent. You can assign "portfolio.camera/" to your photography site, sell "studio.camera/" to a business, and so on.
You buy "alice" on Handshake. alice/ is your root. You control all subdomains.

The "/" notation at the end of Handshake names distinguishes them from traditional domains, though in practice, browser resolvers handle this transparently for users with Handshake-compatible software.

How Handshake Auctions Work

Handshake names are sold through a modified Vickrey auction called a blind auction (FOSS):

You bid in HNS (Handshake's native cryptocurrency)
Your bid is sealed — no one can see it during the bidding period
The bidding window is open for typically 5 days (720 blocks)
After bidding closes, there's a 10-day reveal period where all bidders reveal their bids
The highest bidder wins but pays only the second-highest bid price (Vickrey mechanism)
The losing bids are fully returned to the bidders

Unlike ICANN's $185,000 application fee, winning a Handshake name typically costs a few hundred to a few thousand HNS tokens, depending on competition. At current HNS prices, that translates to a few dollars to a few thousand dollars equivalent.

Names already claimed as traditional ICANN TLDs (like .com, .net, .org, .io) were reserved in Handshake at launch and cannot be re-claimed, protecting existing TLD operators from confusion.

How to Access Handshake Sites

Here's the practical barrier to Handshake adoption: Handshake names don't resolve in a standard browser by default. The traditional DNS infrastructure doesn't know about Handshake's blockchain.

Several solutions exist:

HNSdo and HDNS.io: Free public resolvers. Configure your system or browser to use these DNS servers, and Handshake names will resolve just like normal domains. Zero software installation required.

Namebase: A browser extension and web platform that simplifies Handshake resolution. Also the dominant marketplace for buying and selling HNS names.

Fingertip: A lightweight local resolver daemon for power users who want fully decentralized resolution without depending on a third-party resolver.

NextDNS: A privacy-focused DNS service that offers Handshake resolution as a built-in option.

The resolver requirement is the key adoption challenge for Handshake. Until Handshake resolution is built into mainstream browsers (Chrome, Firefox, Safari) natively, HNS sites will always require some friction for general users. As of 2024, this integration has not occurred.

Registering a Handshake Name

Namebase (namebase.io) is the primary marketplace and onboarding platform for Handshake:

Create a Namebase account
Fund your account with HNS (purchasable on exchanges like Bittrex, or with Bitcoin via Namebase)
Search for the name you want to register
If unclaimed, place a bid in the auction
Return after the reveal period to see if you won
If you win, the name is yours permanently on-chain

Once you own a Handshake TLD, you can:

Configure it with nameservers to host websites
Sell or transfer it via Namebase's marketplace
Create and sell subdomains to others

The Investment Perspective

Handshake investing is speculative but has attracted serious domain investors alongside cryptocurrency enthusiasts. The investment thesis has several layers:

Scarcity: Each Handshake name is unique. Short, generic names that correspond to valuable ICANN domains or common English words were the first to be claimed. Premium names in desirable categories (finance, health, AI, gaming) have already been registered.

Optionality on adoption: If Handshake achieves mainstream browser support, the value of owning premium TLD names could increase dramatically. The entire .com TLD generates billions in revenue. A Handshake equivalent could be enormously valuable.

Subdomain monetization: Premium Handshake TLDs can be monetized today by selling subdomains to users who want a Handshake address. "alice.wallet/" or "alice.defi/" could appeal to crypto users.

Speculative resale: Many investors buy Handshake names primarily to sell them later at a higher price, just as early domain investors bought .com names in the 1990s.

Current valuations on Namebase's Secondary Market range from a few HNS for obscure names to tens of thousands of HNS for premium single-word generics.

Risks and Limitations

Handshake is a compelling experiment, but several risks deserve honest assessment:

Adoption uncertainty: Without native browser support, Handshake remains a niche technology used primarily by crypto enthusiasts. Mass adoption requires buy-in from browser vendors, which has not materialized.

Liquidity: The Secondary Market for HNS names is thin compared to traditional domain markets. Selling a Handshake name at a good price requires finding a buyer who understands the technology.

HNS price volatility: Domain values are denominated in HNS, which fluctuates significantly against USD. A domain worth 10,000 HNS might be worth $200 one month and $800 six months later.

Regulatory uncertainty: Decentralized naming systems exist in a regulatory gray area. Future regulatory action on crypto assets or naming systems could affect the value of HNS names.

Handshake vs. Unstoppable Domains vs. ENS

All three are blockchain naming systems, but they work differently:

Handshake operates at the TLD layer — you buy a top-level domain and control all subdomains. Resolution requires special DNS resolvers. No ongoing fees; ownership is permanent once acquired.

Unstoppable Domains sells second-level domains on existing blockchains (Ethereum, Polygon). You buy something like "yourname.crypto" or "yourname.nft." These are primarily used for cryptocurrency wallet addresses and decentralized websites. Annual renewal fees were eliminated in 2022.

ENS (Ethereum Name Service) operates like traditional domain names but on Ethereum. "yourname.eth" is both a readable Wallet Address and a potential decentralized site identifier. Annual fees apply.

The practical difference: Handshake is trying to replace or supplement traditional DNS at the TLD level. ENS and Unstoppable Domains are primarily identity and Wallet Address systems that happen to also work for websites.

Should You Invest in Handshake?

Handshake is interesting for investors who:

Have existing Domain Investing knowledge and can identify valuable names
Are comfortable with cryptocurrency and on-chain transactions
Accept significant speculative risk in exchange for asymmetric upside
Want exposure to a potential disruption of the traditional domain industry

It's not a fit for investors who:

Need liquidity or predictable returns
Are uncomfortable with cryptocurrency holdings
Want to build a business on a domain with mainstream user accessibility today

The Handshake protocol itself is technically sound. The open question — as it has been since 2020 — is whether browser adoption will ever follow. Until it does, Handshake names are primarily assets for speculators and cypherpunk enthusiasts rather than mainstream internet infrastructure.