## What is Handshake (HNS)?
Handshake (HNS) is a decentralized blockchain protocol revolutionizing internet infrastructure by creating an alternative domain name system (DNS). Unlike traditional DNS controlled by centralized entities like ICANN, Handshake uses cryptocurrency and blockchain technology to enable peer-to-peer management of top-level domains (TLDs). The native cryptocurrency, HNS, powers network operations including domain auctions, transfers, and blockchain security through proof-of-work mining. This innovation aims to democratize internet naming rights, enhance censorship resistance, and reduce dependency on certificate authorities.
## How Handshake Technology Works
Handshake operates through a unique blend of blockchain mechanics and cryptographic principles:
– **Decentralized Root Zone**: Replaces centralized DNS root servers with a blockchain-based system where anyone can bid on TLDs (e.g., .crypto instead of .com)
– **Auction Mechanism**: HNS tokens are used in Vickrey auctions for TLD ownership, where the highest bidder wins but pays the second-highest bid price
– **Proof-of-Work Consensus**: Uses the SHA-3 mining algorithm (Blake2b) to secure the network, with miners earning HNS rewards
– **Compatibility**: Integrates with existing DNS through resolvers like hsd, allowing traditional browsers to access Handshake domains
## Key Benefits of Handshake HNS
– **Censorship Resistance**: No central authority can seize or deactivate domains
– **Enhanced Security**: Cryptographic proofs replace vulnerable certificate authorities
– **Ownership Control**: Users truly own their TLDs as on-chain assets
– **Cost Efficiency**: Eliminates recurring fees for domain renewals
– **Open Access**: Permissionless participation in TLD auctions
## Top Use Cases for HNS Crypto
1. **Decentralized Websites**: Host uncensorable sites using Handshake TLDs
2. **Blockchain Naming**: Replace cryptocurrency addresses with human-readable names (e.g., satoshi.hns)
3. **Developer Tools**: Create decentralized applications (dApps) with integrated naming systems
4. **Digital Identity**: Establish self-sovereign online identities
5. **Alternative DNS Infrastructure**: Organizations can operate private root zones
## How to Buy and Store HNS Tokens
### Buying HNS:
– **Exchanges**: Purchase on Gate.io, Namebase, or CoinEx using BTC or USDT
– **OTC Platforms**: Direct peer-to-peer trades via Namebase OTC
– **Mining**: Mine HNS using GPUs or ASICs (requires technical setup)
### Storage Options:
– **Official Wallets**: Handshake Software Development Kit (hsd) for full nodes
– **Light Wallets**: Bob Wallet for user-friendly management
– **Hardware Support**: Integrate with Ledger devices via third-party interfaces
– **Exchange Wallets**: Temporary storage on trading platforms (not recommended long-term)
## Future Outlook for Handshake
Handshake faces challenges like adoption barriers and competition from projects like ENS. However, its unique value proposition positions it for growth in key areas:
– **Web3 Integration**: Potential to become foundational infrastructure for decentralized web
– **Enterprise Adoption**: Companies seeking censorship-resistant domains
– **Protocol Upgrades**: Ongoing development for scalability and interoperability
– **Market Expansion**: Growing demand for alternative DNS solutions amid internet centralization concerns
## Frequently Asked Questions (FAQ)
– **What makes Handshake different from traditional DNS?**
Handshake replaces centralized control with blockchain governance, enabling true ownership of TLDs without renewal fees or third-party interference.
– **Can I use Handshake domains in regular browsers?**
Yes, with resolver extensions like NextDNS or Fingertip. Native browser support is developing through initiatives like the Handshake Alliance.
– **Is HNS mining profitable?**
Profitability depends on hardware efficiency and HNS market value. ASIC miners currently yield the best returns, with daily earnings tracked on mining pools like DXPool.
– **How do Handshake auctions work?**
TLDs go through a 5-day blind auction:
1. Bidding phase (3 days)
2. Reveal phase (2 days)
3. Winner claims domain by paying the second-highest bid in HNS
– **What happens if I lose my HNS private keys?**
Like other cryptocurrencies, lost keys mean permanent loss of access to domains and funds. Always use secure backups and hardware wallets.
Handshake represents a paradigm shift in internet architecture. By combining blockchain technology with domain management, HNS crypto offers tangible solutions to centralization vulnerabilities while creating new opportunities for digital ownership. As Web3 evolves, Handshake’s open-source protocol could fundamentally reshape how we navigate and trust the internet.
