Handshake (HNS)

What is Handshake (HNS)?

Handshake (HNS) is a decentralized, permissionless naming protocol designed to revolutionize how domain names are managed on the internet. Unlike the current system, which relies on centralized authorities like ICANN and Certificate Authorities (CAs), Handshake leverages blockchain technology to create a secure, censorship-resistant, and democratized alternative. It aims to decentralize the root zone file, the core database containing information about top-level domains (TLDs) like .com, .org, and .net. By placing this critical infrastructure on a blockchain, Handshake empowers network participants to validate and manage the naming system, reducing the risk of single points of failure and control.

The existing DNS system, while functional, relies heavily on trust in centralized entities. These entities are vulnerable to hacking, censorship, corruption, and single points of failure. Handshake seeks to address these vulnerabilities by distributing the control over TLDs across a network of peers. This allows users to register and manage TLDs directly on the blockchain, bypassing the need for intermediaries and fostering a more open and resilient internet. The core principle is to restore the original decentralized vision of the internet.

Co-founded by Joseph Poon and Andrew Lee, Handshake represents a significant experiment in re-decentralizing critical internet infrastructure. It’s not just about creating a new system; it’s about empowering users and promoting a more secure and equitable internet for everyone.

How Does Handshake (HNS) Work?

Handshake operates on a proof-of-work (PoW) blockchain, similar to Bitcoin, to ensure security and consensus. However, instead of solely focusing on transactions, Handshake’s primary function is to manage a decentralized naming system. The core of the system revolves around the Handshake blockchain and the HNS coin, which is used to bid on and register TLDs. The process is orchestrated through a Vickrey auction, a type of sealed-bid auction where bidders submit their offers without knowing the other bids. The highest bidder wins the auction but pays the price of the second-highest bid, encouraging bidders to offer their true valuation of the domain name.

When a user wants to register a TLD, they participate in an auction using HNS. Once the auction is complete and the winner is determined, the ownership of the TLD is recorded on the Handshake blockchain. This record is immutable and verifiable by anyone on the network. To maintain ownership of a TLD, users must perform “heartbeat transactions” every two years, which essentially renew their claim. This mechanism replaces the annual rental fees common in the traditional DNS system, offering a more sustainable and user-centric approach.

The blockchain’s PoW consensus mechanism ensures that all transactions, including TLD registrations and updates, are validated and added to the chain in a secure and transparent manner. This distributed consensus eliminates the need for a central authority to approve or censor domain name registrations, creating a truly permissionless system. Furthermore, Handshake is designed to be compatible with the existing DNS system, allowing for a gradual transition and interoperability. This compatibility allows users to resolve Handshake TLDs using existing DNS infrastructure through specialized resolvers.

Handshake (HNS) Key Features and Technology

Handshake boasts several key features and innovative technologies that differentiate it from traditional domain name systems:

• Decentralized Root Zone: The core of Handshake is its decentralized root zone, stored on the blockchain. This eliminates the need for centralized authorities like ICANN, making the naming system more resilient and censorship-resistant.
• Proof-of-Work Consensus: The use of a Proof-of-Work algorithm, secured by the SHA3-256 algorithm, ensures the security and integrity of the Handshake blockchain, preventing tampering and double-spending.
• Vickrey Auctions: The Vickrey auction system provides a fair and transparent mechanism for registering TLDs, discouraging price sniping and ensuring that domain names are allocated to those who value them the most.
• Heartbeat Transactions: The biennial “heartbeat transactions” replace annual rental fees, offering a more sustainable and user-friendly ownership model.
• HNS Coin: The native HNS coin serves as the fuel for the Handshake network, used for bidding on TLDs, paying transaction fees, and securing the blockchain through mining. It also acts as a spam deterrent preventing mass registration of names.
• DNS Compatibility: Handshake is designed to be compatible with the existing DNS system, allowing for a gradual transition and interoperability. This means users can resolve Handshake TLDs using existing DNS infrastructure through specialized resolvers.
• Improved Security: Replacing the CA system with cryptographic validation and network consensus offers greater security and trust as every peer is validating the root DNS zone.

These features collectively contribute to a more secure, resilient, and user-centric domain name system, promoting a more open and decentralized internet.

What is Handshake (HNS) Used For?

Handshake’s primary use case is to decentralize the domain name registration process and management of digital certificates, effectively creating a globally unique namespace without the control of a central entity. More specifically, Handshake offers various applications for individuals, businesses, and developers:

• Registering TLDs: Users can directly register top-level domains (TLDs) on the Handshake blockchain using HNS coins through a Vickrey auction. This empowers individuals and organizations to own and control their digital identities.
• Hosting Websites: Once a user owns a TLD, they can host websites using that domain name, bypassing the need for traditional domain registrars and certificate authorities.
• Acting as Registrars: Individuals or organizations can act as registrars on the Handshake network, offering domain name registration services to others. This fosters a more competitive and decentralized market for domain names.
• Decentralized Certificate Authority: Handshake can be used to create a decentralized certificate authority (CA) system, replacing the existing centralized CAs and improving the security and trust of online communications.
• Building Decentralized Applications (dApps): Developers can leverage Handshake’s decentralized naming system to build dApps with human-readable names, making them more accessible and user-friendly.
• Censorship Resistance: By decentralizing the root zone file, Handshake offers greater censorship resistance, preventing governments or other entities from arbitrarily controlling or blocking access to websites.

Furthermore, the Handshake Coin (HNS) is the native currency of the protocol, facilitating the transfer, registration, and update of internet names. This currency plays a vital role in countering spam and preventing uncontrolled mass registration of names, ensuring a more orderly and valuable naming system.

How Do You Buy Handshake (HNS)?

Buying Handshake (HNS) involves a few steps. First, you’ll typically need to create an account on a cryptocurrency exchange that lists HNS. This process usually requires providing personal information and completing a KYC (Know Your Customer) verification process to comply with regulations.

Once your account is verified, you’ll need to deposit funds into your exchange account. Most exchanges accept deposits in fiat currencies like USD, EUR, or GBP, which you can transfer via bank transfer, credit card, or other payment methods. Some exchanges may only accept deposits in other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), in which case you’ll need to acquire these cryptocurrencies first and then transfer them to your exchange account.

After your funds are deposited, you can then proceed to buy HNS. You’ll typically find HNS trading pairs against other cryptocurrencies like BTC or ETH, or against fiat currencies like USD. You can place a market order to buy HNS at the current market price or a limit order to buy HNS at a specific price. Once your order is filled, the HNS will be credited to your exchange wallet.

Here are some exchanges where you might find HNS listed:

• Gate.io
• Hotbit
• MXC
• Others, so do your research!

Before buying HNS, it’s crucial to do your own research, understand the risks involved, and choose a reputable exchange with adequate security measures. Remember that cryptocurrency investments are inherently risky, and you could lose your investment.

How Do You Store Handshake (HNS)?

Storing Handshake (HNS) securely is essential to protect your investment. You have several options for storing HNS, each with its own advantages and disadvantages:

• Exchange Wallets: Leaving your HNS on a cryptocurrency exchange is the easiest option, but it’s also the least secure. Exchanges are vulnerable to hacking and theft, so it’s generally not recommended to store large amounts of HNS on an exchange for extended periods.
• Software Wallets: Software wallets are applications that you install on your computer or mobile device. These wallets give you control over your private keys, but they are also susceptible to malware and viruses if your device is compromised. Examples of Handshake-compatible software wallets include:
  • Bob Wallet (Desktop and Web)
  • hsd (Handshake Daemon – command line)
• Hardware Wallets: Hardware wallets are physical devices that store your private keys offline, making them the most secure option for storing HNS. These wallets are resistant to hacking and malware, as your private keys never leave the device. Popular hardware wallet brands include Ledger and Trezor, although compatibility should be verified before use.
• Paper Wallets: A paper wallet involves generating a pair of private and public keys and printing them out on a piece of paper. This is a very secure option if done correctly, as your private keys are stored offline. However, it’s also a cumbersome option, as you’ll need to import your private keys into a software or hardware wallet to spend your HNS.

When choosing a wallet, consider your individual needs and risk tolerance. If you’re storing a small amount of HNS for short-term use, a software wallet might be sufficient. However, if you’re storing a large amount of HNS for the long term, a hardware wallet is the recommended choice for maximum security.

Future Outlook and Analysis for Handshake (HNS)

The future outlook for Handshake (HNS) is complex, with both promising potential and significant challenges. Its success hinges on several factors, including the adoption rate of decentralized naming systems, the ability to overcome technical and usability hurdles, and the overall growth of the decentralized internet.

One of the key strengths of Handshake is its ambition to solve a real problem: the centralization and vulnerability of the existing DNS system. By decentralizing the root zone file, Handshake has the potential to create a more secure, resilient, and censorship-resistant internet. This aligns with the broader trend towards decentralization in various industries, including finance, social media, and data storage.

However, Handshake also faces several challenges. The adoption of decentralized naming systems is still in its early stages, and it requires a shift in mindset from both users and developers. Many users are accustomed to the convenience and familiarity of the traditional DNS system, and it may take time and effort to educate them about the benefits of Handshake. Furthermore, Handshake needs to overcome technical and usability hurdles to make it easier for users to register and manage TLDs on the blockchain.

The success of Handshake also depends on the overall growth of the decentralized internet. As more decentralized applications (dApps) and services emerge, the demand for decentralized naming systems will likely increase. This could create a virtuous cycle, where the growth of the decentralized internet drives the adoption of Handshake, and vice versa.

Overall, Handshake has the potential to play a significant role in shaping the future of the internet. Its innovative approach to decentralizing the DNS system could lead to a more secure, resilient, and user-centric online experience. However, its success is not guaranteed, and it will require sustained effort, innovation, and community support to overcome the challenges ahead.

References

• CoinGecko
• CoinDesk
• Handshake Official Website