Web3 Domains & Handshake: The Future of Decentralized Internet Naming

Comprehensive guide to Web3 domains and the Handshake protocol. Explore revolutionary use cases from censorship-resistant websites to decentralized identity and the new internet infrastructure.

Introduction: The Evolution of Internet Naming

The Internet as we know it relies on a centralized system called DNS (Domain Name System) to translate human-readable website names like "google.com" into machine-readable IP addresses. This system, while functional, has significant limitations: it's centralized, censorable, expensive, and controlled by a handful of powerful entities including ICANN and major registrars.

Web3 domains and protocols like Handshake represent a fundamental reimagining of how internet naming should work. By leveraging blockchain technology, these systems create a decentralized, censorship-resistant, and democratically owned alternative to traditional DNS. This isn't just a technical upgrade—it's a philosophical shift toward true internet ownership and freedom.

What Are Web3 Domains?

Web3 domains are blockchain-based naming systems that replace or complement traditional domain names. Unlike conventional domains that you rent from registrars, Web3 domains are owned outright as digital assets. They exist on various blockchains and offer capabilities far beyond simple website addresses.

Key Characteristics of Web3 Domains

• True Ownership: Once purchased, you own the domain as an NFT or blockchain asset—no renewal fees in most cases
• Censorship Resistance: No central authority can seize, suspend, or revoke your domain
• Built-in Payments: Use domains as cryptocurrency wallet addresses
• Decentralized Identity: One domain can represent your entire digital identity across Web3
• Programmable: Smart contract integration enables advanced functionality
• Portable: Transfer ownership instantly without intermediaries
• Multi-chain Support: Many Web3 domains work across multiple blockchain networks

Major Web3 Domain Ecosystems

Ethereum Name Service (ENS)

The most established Web3 domain system, ENS turns Ethereum addresses into human-readable names like "alice.eth". With over 2.8 million registered domains, ENS has become the de facto standard for blockchain identity.

Unstoppable Domains

Offers multiple extensions including .crypto, .nft, .wallet, .bitcoin, .dao, and more. Known for one-time purchase model with no renewal fees and easy integration with existing websites.

Handshake (HNS)

The most ambitious project, aiming to replace the entire root DNS zone with a decentralized alternative. Rather than a new domain extension, Handshake allows anyone to own and operate their own top-level domains (TLDs).

Understanding the Handshake Protocol

What Makes Handshake Different?

While ENS and Unstoppable Domains create new domain extensions within the existing internet structure, Handshake goes deeper. It's a decentralized, permissionless naming protocol that aims to replace the root zone of DNS itself—the master list of all top-level domains like .com, .org, .net.

Handshake doesn't just give you a domain; it lets you own an entire top-level domain (TLD). Instead of buying "yourname.com" from a registrar, you could own ".yourname" and sell or create unlimited second-level domains under it.

How Handshake Works

1. Blockchain-Based Root Zone: Handshake uses its own blockchain to maintain a decentralized root zone. Every HNS name is recorded on this blockchain, making it immutable and censorship-resistant.

2. Auction-Based Allocation: Top-level domains are allocated through a Vickrey auction system. Anyone can bid on available names, and the highest bidder wins but pays only the second-highest bid amount.

3. Proof-of-Work Security: The Handshake blockchain uses proof-of-work consensus similar to Bitcoin, ensuring security and decentralization.

4. Native Cryptocurrency: HNS coins are used for bidding on names and rewarding miners who secure the network.

5. DNS Compatibility: Handshake domains resolve through modified DNS resolvers, allowing gradual adoption without breaking existing infrastructure.

Technical Architecture

Handshake separates concerns into layers:

• Blockchain Layer: Maintains ownership records and auction mechanics
• Resolver Layer: Translates Handshake names to IP addresses
• Application Layer: Browsers and apps that support Handshake resolution

Revolutionary Use Cases for Web3 Domains

1. Censorship-Resistant Publishing

The Problem: Journalists, activists, and dissidents in authoritarian regimes face constant threat of website seizure, domain suspension, and content censorship. Traditional domains can be taken down by governments, registrars, or ICANN.

Web3 Solution: A news organization registers a Handshake TLD like ".press" or an ENS domain. Once owned, no central authority can revoke it. Content can be hosted on IPFS or decentralized storage, creating a fully censorship-resistant publishing platform.

Real-World Application: Independent media outlets in countries with strict internet controls could publish freely, knowing their domain cannot be seized by authorities. Readers could access content without fear of DNS manipulation or blocking.

2. Decentralized Identity Systems

The Problem: Digital identity is fragmented across hundreds of platforms. You need separate accounts for social media, email, banking, healthcare, and more. Each is a potential security vulnerability and privacy risk.

Web3 Solution: A single Web3 domain like "alice.eth" becomes your universal identity. You use it to:

• Log into decentralized applications (no passwords needed)
• Receive payments in cryptocurrency
• Manage your social profile and reputation
• Control access to personal data
• Sign documents and verify authenticity
• Participate in DAOs and governance

Real-World Application: Instead of remembering dozens of usernames and passwords, you authenticate with your Web3 domain. Your identity data lives in decentralized storage that only you control. Services request access to specific information, which you grant or revoke at will.

3. Simplified Cryptocurrency Payments

The Problem: Cryptocurrency addresses are long, complex, and error-prone. Sending money requires copying strings like "0x742d35Cc6634C0532925a3b844Bc9e7595f0bEb2" and hoping you didn't make a mistake.

Web3 Solution: Web3 domains serve as human-readable payment addresses. Instead of that complex string, send money to "alice.eth" or "company.crypto". The domain automatically resolves to the correct wallet addresses for multiple cryptocurrencies.

Real-World Application: Businesses display their ENS or Unstoppable Domain for customer payments. Freelancers include their Web3 domain in invoices. Families send money to each other using simple names instead of complex addresses. Error rates drop to near zero.

4. Decentralized Application (DApp) Hosting

The Problem: Traditional web hosting requires trusting centralized providers who can shut down your site, increase prices arbitrarily, or compromise your data. DApps need infrastructure that matches their decentralized philosophy.

Web3 Solution: Point your Web3 domain to decentralized storage systems like IPFS, Arweave, or Filecoin. Your website or application becomes distributed across thousands of nodes worldwide, immune to single points of failure.

Real-World Application: A DeFi protocol hosts its interface on IPFS and points its Handshake domain to the content hash. Even if traditional DNS is compromised, users can access the authentic application through Handshake resolution. The interface persists as long as the blockchain exists.

5. Brand Protection and Digital Real Estate

The Problem: Companies spend millions protecting their brand across hundreds of traditional domain extensions (.com, .net, .io, etc.). Cybersquatters and phishers constantly register similar domains to exploit brand recognition.

Web3 Solution: Own your brand as a Handshake TLD. Register ".nike" or ".apple" once, and you control all second-level domains under it forever. Sell or give away subdomains as you see fit, with full control over pricing and policy.

Real-World Application: A major brand owns ".brand" as a Handshake TLD. They create shop.brand, support.brand, careers.brand, and more—all under their absolute control. No registrar can squat on variations, and customers know any .brand domain is authentic.

6. Content Creator Monetization

The Problem: Content creators rely on platforms like YouTube, Patreon, or Substack, which take significant cuts (20-30%) and can deplatform creators arbitrarily. Payment processing adds another 3-5% in fees.

Web3 Solution: Creators establish their Web3 domain as their hub. Fans subscribe or purchase directly using cryptocurrency sent to the domain. Smart contracts handle automatic revenue distribution to collaborators. NFT-gated content provides exclusive access without intermediaries.

Real-World Application: A podcaster uses "creator.eth" for their brand. Listeners send tips directly to the domain (no processing fees). Premium content is gated behind NFTs that viewers hold in their wallets. Revenue is split automatically between the host, producers, and editors via smart contract—no platform takes a cut.

7. Decentralized Social Networks

The Problem: Traditional social media platforms own your identity, content, and connections. They can ban accounts, suppress content, and monetize your data without fair compensation.

Web3 Solution: Your Web3 domain becomes your social identity. Post to decentralized protocols like Lens or Farcaster using your domain. Your followers are connected to your domain, not a platform. If one interface shuts down, your identity and connections persist.

Real-World Application: Social media users own their identity as "user.lens". They post content that's stored on decentralized networks. Their follower relationships are portable across any compatible client. Even if one app disappears, their social graph remains intact and accessible through other interfaces.

8. Decentralized Autonomous Organizations (DAOs)

The Problem: Coordinating global organizations requires trusted intermediaries, complex legal structures, and significant overhead. Traditional systems weren't designed for borderless digital collaboration.

Web3 Solution: DAOs use Web3 domains as their identity. Token holders vote on proposals, treasury management happens on-chain, and the domain serves as the organization's permanent address and identity.

Real-World Application: A investment DAO registers "fund.dao". Members send assets to subdomains for different portfolios (defi.fund.dao, nft.fund.dao). Governance proposals reference the main domain. All activity is transparent and verifiable on-chain. No traditional corporate structure needed.

9. Supply Chain and Provenance Tracking

The Problem: Verifying product authenticity and tracking supply chains requires trusting centralized databases that can be manipulated. Counterfeit goods and supply chain fraud cost billions annually.

Web3 Solution: Products receive unique Web3 domain identifiers (e.g., serial12345.product). The entire lifecycle—manufacturing, shipping, authentication—is recorded on-chain. Consumers scan and verify authenticity instantly.

Real-World Application: Luxury goods brands assign each item a Handshake subdomain. Customers verify authenticity by checking the blockchain record. The complete history—manufacture date, materials, transport route, ownership transfers—is immutably recorded and publicly verifiable.

10. Portable Gaming Identity and Assets

The Problem: Gaming identities and items are locked within individual games or platforms. Hours of progress and valuable digital items become worthless when games shut down or ban your account.

Web3 Solution: Gamers use Web3 domains as their universal gaming identity. In-game assets are NFTs tied to the domain. Progress, achievements, and items become portable across compatible games.

Real-World Application: A player owns "gamer.eth". Their sword earned in Game A is an NFT they truly own. When Game B launches and supports the same standard, they bring their legendary weapon with them. Their domain serves as their reputation and achievement record across the gaming metaverse.

11. Whistleblowing and Anonymous Tips

The Problem: Whistleblowers and sources need secure, anonymous ways to communicate with journalists without revealing identity or risking domain takedowns of secure drop sites.

Web3 Solution: News organizations establish Handshake domains for anonymous submissions. Combined with Tor and encryption, these create truly censorship-resistant secure drop systems that can't be seized or compromised.

Real-World Application: Investigative journalists set up "tips.press" on Handshake. Sources anywhere in the world can securely submit documents knowing the domain can't be taken down and their anonymity is protected by cryptography, not just policy promises.

12. Educational Credentials and Verification

The Problem: Degree fraud is rampant. Verifying educational credentials requires contacting institutions, paying verification services, and waiting days or weeks. Diploma mills exploit this friction.

Web3 Solution: Universities issue credentials as verifiable attestations linked to students' Web3 domains. Employers verify credentials instantly by checking on-chain records. No intermediary needed.

Real-World Application: A university issues blockchain credentials to "graduate.eth". When applying for jobs, the graduate shares their domain. Employers click and instantly see verified degrees, certifications, and achievements—all cryptographically provable and impossible to forge.

Getting Started with Web3 Domains

Choosing Your Ecosystem

Choose ENS if:

• You're primarily in the Ethereum ecosystem
• You want the most established and widely recognized Web3 identity
• You plan to interact with DeFi, NFTs, and Ethereum-based DApps
• You value the largest existing network effect

Choose Unstoppable Domains if:

• You want a one-time purchase with no renewal fees
• You need multi-chain support out of the box
• You want to easily point domains to traditional websites
• You prefer a more user-friendly onboarding experience

Choose Handshake if:

• You want to own a top-level domain (your own TLD)
• You're interested in the most decentralized option
• You want to build infrastructure for others
• You believe in replacing traditional DNS entirely

Step-by-Step: Registering Your First Web3 Domain

For ENS Domains

1. Get an Ethereum Wallet: Install MetaMask or another Ethereum wallet
2. Fund Your Wallet: Add ETH for registration fees (typically $5-50 depending on name length)
3. Visit ENS.domains: Connect your wallet to the official ENS app
4. Search for Names: Check availability of your desired name
5. Register: Complete the two-step registration process
6. Set Records: Add your wallet addresses, IPFS content hash, social profiles, etc.
7. Set as Primary Name: Make this your reverse record so your address displays as your ENS name

For Unstoppable Domains

1. Visit UnstoppableDomains.com: Browse available extensions
2. Search and Select: Find your perfect domain name
3. Purchase: Pay with cryptocurrency or credit card (one-time fee)
4. Set Up Wallet: Connect your crypto wallet to manage the domain
5. Configure Records: Add cryptocurrency addresses for payments
6. Link to Website: Optionally point to IPFS content or traditional website
7. Claim Domain: Mint to blockchain (free for most domains)

For Handshake Domains

1. Get HNS Coins: Purchase on exchanges like Namebase, Gate.io, or use faucets
2. Choose a Platform: Use Namebase (easiest) or run your own node
3. Search for TLDs: Check if your desired TLD is available
4. Participate in Auction: Bid on available names (auctions last several days)
5. Win and Reveal: Reveal your bid after the auction closes
6. Configure DNS: Set up nameservers for your new TLD
7. Create Subdomains: Build out your domain structure

Setting Up Resolution

Web3 domains don't work in standard browsers by default. You need:

• Browser Extensions: Install browser extensions like Bob Extension or Handshake Extension
• Brave Browser: Has built-in ENS and Unstoppable Domains support
• Opera Browser: Native Web3 domain resolution
• Custom DNS: Configure your device to use Web3-compatible DNS resolvers
• Gateway Services: Use services like eth.link or gateway.io as bridges

Technical Implementation for Developers

Integrating ENS Into Your DApp

ENS resolution in JavaScript is straightforward using the ethers.js library. The library provides simple methods to resolve ENS names to addresses and perform reverse lookups. You can use provider.resolveName() to convert an ENS name like 'alice.eth' to an Ethereum address, and provider.lookupAddress() to reverse resolve an address back to its primary ENS name.

For production applications, integrate ENS into your authentication flow, payment systems, and user profiles. Libraries like web3.js and ethers.js have built-in ENS support, making integration seamless.

Resolving Handshake Domains

Handshake domain resolution requires running or connecting to a Handshake resolver. The bns library provides resolution capabilities, allowing you to query Handshake domains programmatically. You configure a resolver instance with Handshake-enabled DNS servers, then use it to resolve domains just like traditional DNS.

For production deployments, consider using services like HDNS or running your own hsd node to ensure reliable resolution without depending on third-party infrastructure.

Building on Handshake

Key developer tools and resources:

• hsd: Full Handshake node implementation
• hnsd: Lightweight SPV resolver
• Fingertip: Browser extension SDK
• HDNS: Hosted DNS service for Handshake domains
• Namebase API: Programmatic domain management

Economic Considerations

Cost Comparison

Traditional Domains:

• Registration: $10-15/year for .com
• Renewal: $10-20/year (prices can increase)
• Privacy Protection: $10-15/year additional
• Lifetime Cost (10 years): $150-250+

ENS Domains:

• Registration: $5-640+ (based on length and gas fees)
• Renewal: $5/year for 5+ characters
• Lifetime Cost (10 years): $55-700+

Unstoppable Domains:

• Registration: $5-10,000+ (one-time, no renewals)
• Renewal: $0 (owned permanently)
• Lifetime Cost: One-time payment

Handshake TLDs:

• Registration: Auction-based (can be free for unpopular TLDs)
• Renewal: ~$2 every 2 years
• Lifetime Cost (10 years): $10+ depending on auction price

Investment Potential

Web3 domains have emerged as a new asset class. Premium domains have sold for significant amounts:

• paradigm.eth: 420 ETH (~$1.5M at sale time)
• 000.eth: 300 ETH (~$300K)
• nike.eth: Purchased by Nike for undisclosed amount
• Top Handshake TLDs: Some selling for thousands in secondary markets

Factors driving value:

• Short, memorable names
• Dictionary words and brands
• Early adoption positioning
• Utility across multiple Web3 platforms
• Cultural relevance and meme potential

Challenges and Limitations

Current Obstacles

1. Limited Browser Support: Most users need extensions or special configuration to resolve Web3 domains natively.

2. User Experience Friction: Managing crypto wallets and understanding blockchain concepts remains challenging for mainstream users.

3. Regulatory Uncertainty: Governments may attempt to regulate or restrict decentralized naming systems.

4. Scaling Challenges: Blockchain transaction costs can be high during network congestion.

5. Content Moderation: Truly censorship-resistant systems raise questions about illegal content and user safety.

6. Namespace Fragmentation: Multiple competing systems create confusion about which to adopt.

Security Considerations

• Key Management: Losing your private key means losing your domain permanently
• Smart Contract Risks: Bugs in domain contracts could affect ownership
• Phishing: Users may be tricked into sending funds to wrong addresses
• Squatting: Valuable names may be registered by speculators

The Future of Decentralized Naming

Emerging Trends

Mass Adoption Drivers

• Wallet Integration: Major wallets building native Web3 domain support
• ISP Adoption: Internet service providers adding decentralized DNS resolution
• Corporate Interest: Major brands securing Web3 identity
• Layer 2 Solutions: Cheaper transactions making adoption more accessible
• Mobile First: Web3 browsers and mobile apps driving growth

Technical Evolution

• Cross-Chain Identity: Single domain working across all blockchains
• AI-Powered Resolution: Intelligent systems predicting intended destinations
• Quantum Resistance: Post-quantum cryptography for long-term security
• Decentralized Storage Integration: Seamless connection to IPFS, Arweave, Filecoin
• Privacy Enhancements: Zero-knowledge proofs for private domain ownership

Predictions for 2026-2030

2026: Major browsers begin native Web3 domain resolution. First government experiments with Handshake for public services.

2027: Fortune 500 companies establish significant Web3 presence. Social media platforms integrate ENS/Web3 domains for user identity.

2028: Regulatory frameworks emerge, legitimizing decentralized naming while addressing concerns. First national DNS systems built on Handshake principles.

2029: Traditional domain registrars offer hybrid services. Web3 domains reach 100+ million registrations globally.

2030: Decentralized naming becomes standard for new internet services. Traditional DNS and Web3 systems operate in parallel, with increasing shift toward decentralization.

Practical Advice for Different Users

For Individuals

• Register your name before someone else does
• Start with ENS if you're in crypto, Unstoppable for simplicity
• Use as your payment address to avoid copying complex wallet addresses
• Set up a simple profile with your social links and bio
• Consider short or memorable names for potential future value

For Businesses

• Secure your brand across all major Web3 domain systems
• Consider purchasing a Handshake TLD for complete brand control
• Use Web3 domains for crypto payment reception
• Experiment with decentralized hosting for resilience
• Prepare for Web3 integration even if not immediately necessary

For Developers

• Integrate ENS resolution into your DApps
• Build tools that make Web3 domains more accessible
• Experiment with Handshake for truly decentralized infrastructure
• Create bridges between traditional and Web3 systems
• Contribute to open-source Web3 naming projects

For Investors

• Research valuable short names and dictionary words
• Consider cultural significance and brand potential
• Diversify across different domain ecosystems
• Hold HNS tokens for participation in Handshake ecosystem
• Understand that this is speculative and high-risk

Conclusion: Building the Decentralized Internet

Web3 domains and the Handshake protocol represent far more than a technical curiosity or speculative asset. They're fundamental infrastructure for a more open, fair, and censorship-resistant internet. As centralized platforms increasingly demonstrate the dangers of concentrated power over digital identity and communication, decentralized alternatives become not just appealing but necessary.

The use cases explored in this article—from censorship-resistant publishing to portable digital identity—solve real problems that affect billions of people. They offer concrete improvements over existing systems in terms of security, ownership, and freedom.

We're still in the early stages. Browser support is limited, user experience needs improvement, and regulatory questions remain unanswered. But the trajectory is clear: the internet is moving toward decentralization, and naming systems must evolve accordingly.

Whether you're an individual securing your digital identity, a business protecting your brand, a developer building the future, or simply someone who believes the internet should belong to its users rather than corporations and governments—Web3 domains offer a path forward.

The domain name you register today might become your permanent digital identity for decades to come. The TLD you purchase might power an entire ecosystem of services. The infrastructure we build now will determine whether the next generation of the internet remains open or becomes even more centralized than what we have today.

The future of internet naming is decentralized. The question is not whether this transition will happen, but how quickly—and whether you'll be part of building it.

The decentralized internet is being built right now. Secure your place in it before someone else does.