Launched in February 2020, Handshake is a blockchain protocol experiment built on unspent transaction outputs (TXOs). Its objective is to decentralize how governance is handled for domain name ownership. Today, domain names are largely controlled by a central organization, ICANN, a non-profit that sets the letters used at the end of addresses (such as .com or .net). In addition, the internet’s security is supported by a limited set of private Certificate Authorities, which assess and confirm that domains are legitimate.

 Handshake looks to replace this centralized approach, which is why it was designed as both a decentralized naming protocol and a Certificate Authority. Through Handshake’s network, domain names are distributed using an open auction process. The platform also relies on an open-source community to handle validation.

Handshake includes its own native currency, Handshake (HNS). It functions as a utility token for registering, renewing, and transferring domain names.

Handshake was created by a group of crypto enthusiasts and technologists, including Joseph Poon, who co-created Bitcoin’s Lightning Network, and Christopher Jeffrey, the current CTO of Purse, a bitcoin startup. The project drew considerable attention, with 67 investors participating in the funding round. These investors received 7.% of the initial 1.36 billion HNS supply.

What are HNS’s key features and how does it work?

When Handshake launched its native currency, HNS was distributed in a distinctive way. 15% was reserved for investors and developers, while the remainder was allocated as gifts. 68% was directed to open-source developers. The remaining portion of HNS went to ICANN and Certificate Authority bodies, aiming to encourage these organizations to move toward Handshake’s decentralized naming system.

Domain name assignment on the Handshake platform uses the Vickrey system, with auctions for top-level domain names running every two weeks. Because HNS is the platform’s official currency, participants must bid using HNS to enter the auctions. Handshake names are issued for two years, and renewal requires paying the applicable fees, also in HNS.

Importantly, today’s approach to website verification depends on Certificate Authorities, which indicate to users whether sites are authentic. This method, however, is not guaranteed to be perfect-Certificate Authorities can occasionally misidentify genuine sites. It also relies on lists produced by ICANN, which leaves the system exposed to potential administrative mistakes by the central authority, as well as weaker security conditions where Certificate Authorities could coordinate with governments or other parties seeking to restrict content or access private data.

One major Handshake protocol advantage is that it removes the need for Certificate Authorities. Instead, verification takes place on the Handshake blockchain and is secured through a Proof of Work consensus mechanism. Under this model, new blocks are appended when competing miners solve mathematical puzzles to release newly created HNS tokens. Blocks are produced every 10 minutes, and the protocol sets a fixed upper bound on token creation of 2.04 billion.

Where can you buy HNS?

HNS can be purchased on the CEXs and DEXs listed here. Common choices include Gate.io and Hotbit. The price of HNS depends on the exchange where you trade and current market demand. For more detailed pricing information, check the price charts above.