Overview
Handshake is a proof-of-work blockchain designed to decentralize the DNS root zone — the part of the internet's naming system controlled by ICANN that decides which top-level domains (like .com, .org, .net) exist. Rather than relying on a centralized authority to manage TLDs, Handshake allows anyone to auction, register, and own TLDs on a permissionless blockchain.
The project launched in February 2020 with a notable distribution model: 70% of the initial HNS supply was airdropped to open-source developers (via GitHub and Hacker News accounts) and FOSS foundations. The remaining tokens went to investors, contributors, and miners. This developer-first distribution was philosophically aligned with the project's cypherpunk ethos.
However, Handshake has struggled massively with adoption. Owning a Handshake TLD (e.g., you could own ".alice") means very little if browsers and standard DNS resolvers don't recognize it. Without integration into mainstream DNS infrastructure, Handshake names only resolve through specialized resolvers, HNS-aware browsers, or gateway services like hns.to. The gap between owning a decentralized TLD and having it work on the real internet has proven to be Handshake's fundamental limitation.
Technology
Naming Protocol
Handshake's naming system uses Vickrey auctions — a second-price sealed-bid auction mechanism — to allocate TLD ownership. Users bid on names using HNS tokens; the highest bidder wins but pays the second-highest bid price. This auction design reduces overbidding and is economically sound. Once registered, names are renewed periodically with a small fee.
The protocol stores only the root zone on-chain — it doesn't try to replace the entire DNS hierarchy. Name owners can set DNS records for their TLD, allowing subdomains to be managed off-chain through traditional DNS infrastructure. This is a pragmatic design that limits on-chain bloat.
Blockchain Architecture
Handshake runs its own proof-of-work blockchain using a Blake2b+SHA3 mining algorithm. Block time is approximately 10 minutes. The chain is purpose-built for naming — it handles auctions, registrations, renewals, and record updates. The simplicity of the chain (no smart contracts, no DeFi) is by design.
Resolution Challenge
The critical technical challenge is resolution. Standard DNS resolvers and web browsers do not query the Handshake blockchain. Users must either run an HNS resolver, use a browser extension, rely on gateway services, or configure a DNS-over-HTTPS resolver that supports Handshake. This friction is enormous for non-technical users and is the primary barrier to adoption.
Security
Chain Security
Handshake's proof-of-work chain has operated without major exploits since launch. The mining algorithm is ASIC-resistant (though ASICs have been developed for it), and the chain has maintained consistent block production. As a simple naming chain without DeFi or smart contracts, the attack surface is smaller than general-purpose blockchains.
Naming Security
Decentralized naming eliminates the risk of ICANN or a registrar seizing or censoring a domain. Name ownership is secured by private keys, making it censorship-resistant by design. However, this also means lost keys mean permanently lost names — there is no account recovery process.
Hashrate Concerns
Handshake's mining hashrate is relatively low, which makes the chain potentially vulnerable to 51% attacks from entities with significant mining hardware. The low economic value of HNS reduces the cost of such an attack.
Decentralization
Root Zone Decentralization
This is Handshake's strongest dimension. The traditional DNS root zone is controlled by ICANN, a centralized organization with significant power over internet naming. Handshake replaces this with a permissionless system where anyone can participate in auctions and own TLDs. No single entity controls name allocation.
Mining Distribution
Mining is distributed among small-scale miners, mining pools, and hobbyists. The low profitability of HNS mining has kept large industrial miners away, which paradoxically preserves decentralization. The developer airdrop distributed tokens broadly, though many recipients likely sold immediately.
Governance
There is no formal on-chain governance. Protocol changes are proposed by the core development team and adopted through node upgrades. The development team is small and the community-driven governance process is informal.
Adoption
Real-World Usage
Handshake's adoption is critically low. While hundreds of thousands of names have been registered (driven by speculation and squatting), almost none see meaningful resolution traffic. The names are not recognized by Chrome, Firefox, Safari, or any major browser without additional tooling. This makes Handshake names effectively useless for mainstream web applications.
Ecosystem
A small ecosystem of HNS-focused services exists: Namebase (exchange and registrar), various auction platforms, and resolver services. The Namebase marketplace has seen some trading activity, primarily speculative. Some projects have attempted to bridge HNS names to traditional DNS through certificate authorities, but adoption remains marginal.
Competitive Landscape
ENS dominates the decentralized naming market with .eth names that are widely recognized in the crypto ecosystem. Unstoppable Domains offers blockchain-based names with better browser integration efforts. Handshake's ambition to replace the DNS root zone is grander than these competitors, but its adoption is far lower.
Tokenomics
HNS Token
HNS is used for auctions, renewals, and miner rewards. The token had a large initial supply distributed via airdrop. HNS price has declined dramatically from early trading levels. Low demand for name registrations means low demand for HNS, creating persistent sell pressure from miners and airdrop recipients.
Economic Model
Names are burned (the winning bid in a Vickrey auction is burned, not paid to anyone), which creates a deflationary mechanism. However, the burn rate is low due to limited auction activity. Mining rewards continue to add supply. The economic model is sound in theory — name demand drives HNS demand — but the absence of adoption breaks the demand side.
Market Reality
HNS trades on a few exchanges with very low volume. Market cap is minimal. The token is essentially a bet on Handshake achieving meaningful adoption, which has not materialized after five years.
Risk Factors
- Near-zero adoption: Handshake names don't resolve in standard browsers, making them practically useless for most users
- Resolution friction: Requiring special resolvers or tooling is a dealbreaker for mainstream usage
- Low hashrate: The chain is vulnerable to 51% attacks due to low mining profitability
- ENS dominance: ENS has captured the decentralized naming narrative and ecosystem
- Speculative registrations: Most name registrations are squatting rather than genuine usage
- Small development team: Limited ongoing development and protocol improvement
- Token price decline: HNS has lost nearly all value from early trading levels
Conclusion
Handshake is a technically sound project with an ambitious vision — decentralizing the DNS root zone is a genuinely important infrastructure goal. The Vickrey auction system is well-designed, the developer airdrop was philosophically aligned, and the protocol itself works as intended.
The problem is that working as intended is not enough. Without browser integration, mainstream DNS resolver support, or any practical reason for non-crypto users to interact with Handshake names, the project remains a theoretical success and a practical failure. Five years after launch, Handshake names are still invisible to 99.9% of internet users.
The 4.5 score reflects strong decentralization principles undermined by the fundamental adoption challenge. Handshake proves that decentralizing critical internet infrastructure requires not just good technology but also a viable path to integration with existing systems — a path Handshake has not found.