Handshake HNSPrice $ 0.00556

Launched in February 2020, Handshake is an unspent transaction output (TXO)-based blockchain protocol experiment that aims to decentralize the governance of domain name ownership. At the moment, website domains are predominantly managed by a central authority, ICANN, a non-profit body that governs the letters used at the end of any address (for example .com or .net). Additionally, the internet is secured by a small group of private companies which make up the Certificate Authorities who verify and identify genuine domains.

 Handshake’s goal is to overcome this centralized system, and as such, it was created as a decentralized naming protocol and Certificate Authority. Names are issued via an open auction system operated by Handshake’s network. The system depends on an open-source community for validation.

Handshake has its own native currency Handshake (HNS). It is a utility coin used for the registration, renewal, and transfer of domain names.

Handshake was created by a group of crypto-enthusiasts and technologists including Joseph Poon, co-creator of Bitcoin’s Lightning Network and Christopher Jeffrey, the current CTO of Purse, a bitcoin startup. The project attracted significant interest, with 67 investors taking part 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 launching the platform’s native currency HNS distributed the currency in a relatively unique way. 15% was set aside for investors and developers whilst the rest was gifted. 68% went to open-source developers. Interestingly, the rest of HNS went to ICANN and Certificate Authority bodies in an attempt to provide an incentive for these bodies to adopt Handshake’s new decentralized system.

Allocation of website addresses on the Handshake platform is done via the Vickrey system where auctions for the top-level domain names take place every two weeks. The official currency of the platform is HNS, so to take part in the auction users must bid in HNS. Handshake names are registered for two years and can be renewed by paying relevant fees which must also be paid in HNS.

Notably, the current system of website verification depends on Certificate Authorities, which tells internet users if sites are genuine. However, this system is not error-proof and Certificate Authorities sometimes make mistakes in identifying genuine sites. This system also depends on lists generated by the ICANN, making it susceptible to potential administrative errors from the central governing body as well as low-security levels where Certificate Authorities may cooperate with governments or other bodies attempting to censor content or access private data.

A key feature of the Handshake protocol is that it overcomes these issues by removing the need for Certificate Authorities. Instead, the verification process in Handshake moves to the Handshake blockchain, which is verified by a Proof of Work consensus mechanism. This is a system where new blocks are added to the chain when competing miners solve mathematical puzzles to unlock newly minted HNS tokens. New blocks are added every 10 minutes and there is a fixed maximum limit of HNS tokens that can be created, at 2.04 billion.

Where can you buy HNS?

HNS is available to buy from the CEXs and DEXs as listed here. Popular options include Gate.io and Hotbit. The price of HNS will vary depending on the exchange buyers use and current market interest. For more detailed price information please refer to the price charts above.