Handshake is an innovative decentralized blockchain protocol that aims to replace the existing Domain Name System (DNS) used to convert website names into IP addresses. The Handshake network uses a native cryptocurrency called HNS to allow peers to purchase decentralized website names ending in .hns. This article provides a comprehensive overview of how Handshake names work and the technology behind them.

Understanding Domain Names and DNS

To comprehend Handshake names, we must first understand how standard domain names and DNS work on the internet today.

When you enter a domain name like example.com into your browser, it gets resolved into a machine-readable IP address like 192.168.1.1 that identifies the destination server to connect to. This process is facilitated by the DNS, a centralized phonebook-like hierarchy consisting of root servers at the top delegating authority down to lower-level name servers.

DNS is centralized and constrained - ICANN sells domains via registrars and controls policies. Domain names also remain tied to ICANN's root which creates a single point of failure. Censorship, outages and exorbitant domain pricing are inherent risks in this system.

Introducing Handshake Names

The Handshake protocol aimed to replace this flawed system with a decentralized alternative not dependent on a centralized root. Handshake uses blockchain to enable peers to permanently purchase domain names ending in .hns that are stored on a decentralized ledger.

Some key characteristics of Handshake names:

- Completely decentralized - no central authority controls policies or censorship.
- Censorship resistant - domains cannot be seized or blocked by third parties.
- Autonomous peer-to-peer transactions - users transact with each other directly with no intermediaries.
- Permanent names - purchased domains are truly owned in perpetuity on the blockchain.
- Interoperable records - DNS records like IP addresses can be integrated with HNS names.

In summary, Handshake domains deliver decentralized uncensorable websites beyond the reach of authorities. Ownership is permanent and dispute resolution decentralized.

How Handshake Names are Acquired

So how do users get Handshake names? The process consists of:

- Bidding on names via auctions. Bids are placed using the HNS cryptocurrency.
- If bid is successful, payment is made and name is permanently assigned to bidder's cryptographic key pair.
- Names can then be updated to point to a website server's IP address.
- Or names can be traded to other users via peer-to-peer transactions.

Unlike standard DNS, anyone can acquire any available .hns name without restrictions. All transactions occur on-chain between users with no central intermediaries.

Technical Implementation

Under the hood, Handshake leverages blockchain in some ingenious ways to enable decentralized naming:

- Uses its own blockchain derived from Bitcoin's codebase but with modifications.
- Consensus is reached via Proof-of-Work mining similar to Bitcoin.
- The ledger tracks domain name purchases, transfers, updates and ownership records.
- Blocks contain additional DNS transaction data beyond just transactions.
- Transaction fees paid in HNS are awarded to miners.
- Cryptographic commitment schemes bind names to owners' key pairs.
- Renewals are not required - names are purchased permanently.

Handshake borrows concepts from blockchain but innovates with supplementary DNS data structures to create a decentralized naming system.

HNS Cryptocurrency

The native cryptocurrency of the Handshake ecosystem is HNS. It performs several key functions:

- Used to bid for domain names at auction and transfer names.
- Payment to miners as a reward for validating transactions and blocks.
- Can be used for generic peer-to-peer transactions and value transfer.
- Currently trades on cryptocurrency exchanges against BTC and other assets.
- Limited supply with about 250 million HNS minted over 150 years.

HNS gives Handshake names inherent monetary value lacking in standard DNS. It also properly aligns incentives between miners validating transactions and users transacting in names.

Benefits of Handshake Names

Handshake names offer several advantages over traditional ICANN domain names:

Censorship Resistance Names cannot be seized or blocked by governmental authorities or third parties.

Self-Governance Rules and policies enforced by the decentralized community rather than a single entity.

Lower Fees No renewal fees required once name purchased unlike standard domains.

Ownership Autonomy Once acquired, names are true peer-to-peer assets under your permanent ownership.

Increased Availability No artificial restrictions on acquiring any top-level domain.

Security Cryptographic proofs provide strong defenses against phishing and typosquatting.

Interoperability Integration with legacy DNS provides continuity of resolving existing domains.

For users valuing decentralization, autonomy and censorship resistance, Handshake offers clear advantages.

Use Cases of Handshake Names

Some potential use cases well-suited to Handshake names:

Censorship Circumvention Accessing blocked content by websites utilizing HNS domains that cannot be taken down.

Unstoppable Websites Creating websites on censorship-resistant namespaces to evade authority restrictions.

Decentralized Applications Integrating HNS names with blockchain-based uncensorable apps and services.

Typosquatting Protection Defensively acquiring brand names on HNS before cybersquatters can exploit them.

ICANN Backup Redundant domain registration on HNS to mitigate reliance on centralized DNS.

Autonomous Peer Services Building distributed services that rely on HNS names for addressing and uniqueness.

Handshake offers an intriguing new platform for autonomous uncensorable websites and applications.

Limitations of Handshake Currently

While innovative, Handshake does have some limitations in its current state:

- Limited wallet and naming services support - requires technical know-how presently.

- Lower mainstream adoption compared to standard DNS. Network effects building.

- Relatively low transaction throughput capability currently.

- No native integration with legacy DNS - requires browser plugins for transparent resolving.

- Risks of squatting still exist - although collaborative policies can govern.

- Conflict resolution mechanisms still maturing compared to ICANN dispute process.

But active development is gradually improving the Handshake ecosystem's maturity and capabilities.

The Handshake Foundation

Development of the Handshake protocol, network and grant initiatives are stewarded by the Handshake Foundation, a non-profit entity. The project originated at the MIT Media Lab Digital Currency Initiative as an academic research project.

Key activities and entities related to the Foundation include:

- Protocol research and development work on the HNS blockchain and ecosystem.

- Supporting integrations with crypto wallets, apps and naming services.

- Fostering developer tools, documentation and dApp building on Handshake.

- Grantmaking to support growth of the decentralized naming ecosystem.

- Promoting adoption and education around decentralized naming and HNS.

- Building community consensus around policies and standards for HNS names.

- Custody and allocation of the initial coin supply to seed adoption and development.

The Foundation plays an important role in nurturing adoption in these early stages while aiming to ultimately fade away as the system becomes self-sustaining.

Handshake offers an intriguing experiment in decentralized naming and DNS functioning independent of centralized authorities. By combining blockchain with an innovative domain registry system, Handshake has built a platform for censor-resistant websites and domain names controlled by users rather than corporations or governments.

If adoption continues growing, HNS names could provide viable alternatives to current DNS in cases where decentralization and evasion of interdiction are priorities. Though still early, Handshake addresses real limitations around centralized points of failure and censorship in the critical Internet naming infrastructure. Its ongoing evolution makes it a compelling project to watch within the broader web3 ecosystem.