Handshake

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Discover Handshake's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Handshake?

Handshake (HNS) is a decentralized naming solution for the internet, utilizing blockchain technology to provide a permissionless and trustless alternative to traditional domain name systems. It allows users to own and manage top-level domains (TLDs) without relying on centralized authorities, ensuring greater security, privacy, and control over domain names. The Handshake protocol uses its native cryptocurrency, HNS, for domain name registrations and auctions, promoting a decentralized and peer-to-peer approach to domain management.

How is Handshake used?

The Handshake (HNS) cryptocurrency is used primarily for registering and managing internet names within the Handshake protocol. Here are the key ways HNS is utilized:

  1. Domain Registration and Auctions: HNS is used to bid on and register top-level domains (TLDs) through a decentralized auction process. Users must acquire HNS to participate in these auctions, ensuring a fair and secure allocation of domain names.

  2. Name Transfers and Updates: HNS is the mechanism for transferring and updating internet names within the Handshake system. This ensures that participants can manage their domain names without relying on centralized authorities.

  3. Preventing Sybil Attacks: The use of HNS prevents a single party from claiming all the names, as it would be costly to do so. This maintains the decentralized nature of the Handshake protocol.

  1. Network Incentives: HNS is used to incentivize participants to contribute to the network. The value of HNS is derived from the network of users, following Metcalfe's Law, which states that the value of a network increases exponentially with the number of users.

  2. Wallet Management: Users can store, spend, and accept HNS using a Handshake wallet, allowing them to manage their domain names and participate in the Handshake ecosystem.

Overall, HNS is the core cryptocurrency that facilitates the decentralized management of internet names within the Handshake protocol.

How do I store Handshake?

To store Handshake (HNS) tokens, you can use a Handshake wallet. This wallet is essentially data that allows you to receive and spend HNS, place bids on names, and update resource records for your names. The wallet is made up of multiple keys, each consisting of a private key and a public key. The private key is sensitive and required for spending, while the public key can be used to receive HNS and monitor a particular address.

To set up a Handshake wallet, you can use tools like hsd and hsw-cli. These tools provide a powerful and modular way to create and manage wallets. You can create a new wallet, seed it with a mnemonic phrase, and encrypt it with a passphrase. This ensures that your wallet is secure and easy to backup and restore.

Additionally, you can use mobile crypto wallets like Viawallet, which integrates with HNS tokens, providing a convenient way to manage your Handshake tokens on the go.

It is crucial to back up your keys to maintain access to your coins and names in the future. You can do this by writing down the 12 or 24 words on a piece of paper, which can recover your names and funds at any time.

How to buy Handshake?

To buy Handshake (HNS) tokens, follow these steps:

  1. Choose an Exchange: Select a reputable cryptocurrency exchange that supports HNS trading. Popular options include gate.io, MEXC, and CoinEx. Ensure the exchange accepts customers from your country and offers the features you need.

  2. Create an Account: Register a free account on the chosen exchange. This typically involves providing personal information and completing Know-Your-Customer (KYC) verification to increase withdrawal limits and unlock additional features.

  3. Deposit Funds: Deposit a cryptocurrency like USDT, BTC, or ETH into your exchange account. This can be done using various methods such as credit cards, bank transfers, or peer-to-peer trading.

  1. Buy HNS: Use the deposited funds to buy HNS on the exchange. You can place a market order or a limit order, depending on your trading strategy. Market orders execute immediately at the best available price, while limit orders specify a maximum price you are willing to pay.

  2. Store Your HNS: Once you have purchased HNS, store it securely in a digital wallet. You can use the exchange's built-in wallet or transfer the tokens to an external wallet for added security.

For US citizens, buying HNS on Namebase is a viable option. You can purchase BTC on another platform, transfer it to your Namebase account, and then convert it to HNS.

Remember to always do your due diligence, diversify your investments, and only invest what you can afford to lose.

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History of Handshake

Handshake (HNS) is a decentralized naming protocol that allows for peer-to-peer communication and provides an alternative to centrally managed domain names. The project aims to revolutionize the domain name system (DNS) by utilizing blockchain technology to create a more secure, decentralized, and accessible platform for managing top-level domains (TLDs).

Origins and Launch

Handshake was first conceptualized in the early 2010s, with its co-creators raising $10.2 million from top venture capital funds. However, in a unique move, they donated 100% of the funds to the Free & Open Source Software (FOSS) community. This demonstrated the project's commitment to decentralization and community-driven development.

Handshake officially launched on February 3rd, 2020, with the goal of creating a decentralized DNS system that bypasses the traditional centralized management of domain names by the Internet Corporation for Assigned Names and Numbers (ICANN).

Early Adoption and Development

In the first two years after its launch, Handshake saw significant growth and adoption. The project released a timeline of its development, covering from launch to December 31st, 2021, which highlights key milestones and achievements. During this period, Handshake also launched its messaging application, HNS Chat, which uses HNS names as login and usernames.

Key Milestones and Achievements
  • Highest NFT Domain Sale: In March 2022, the .S/ HNS TLD was sold for 750,000 USD, setting a record for the highest NFT domain sale of all time.
  • ICANN Recognition: In April 2022, ICANN published a paper on Alternative Name Systems, mentioning Handshake 26 times. This recognition underscored Handshake's position as a viable alternative to the centralized web framework.
  • Browser Integration: In May 2022, Aloha Browser, with 28 million monthly active users, integrated HNS, making it the largest browser to do so.
  • 5 Million Names: By June 2023, Handshake had reached 5 million names in existence, surpassing all other alternative namespaces combined.
Current State and Future

As of late 2023, Handshake continues to grow and evolve, with a passionate community of users and developers contributing to its decentralized ecosystem. The project remains committed to its ethos of decentralization and community-driven development, making it a unique and promising player in the blockchain and DNS spaces.

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How Handshake works

The Handshake (HNS) cryptocurrency is a crucial component of the Handshake protocol, which aims to decentralize the domain name system (DNS) and provide a more secure and censorship-free internet infrastructure. Here’s how it works:

Handshake Coin (HNS)

The Handshake coin, abbreviated as HNS, is the native cryptocurrency used within the Handshake ecosystem. It is used to purchase and register Handshake domain names, which are decentralized and offer full ownership and control to their users. The HNS coin is similar to other cryptocurrencies like Bitcoin (BTC) and is traded on various exchanges.

Blockchain and Mining

Handshake operates on a blockchain network, which ensures the security and integrity of domain name transactions. Miners run the Handshake software, competing to solve complex mathematical puzzles to unlock new HNS tokens. New blocks are added to the blockchain every 10 minutes, and miners are rewarded with 2,000 HNS for their work. The maximum supply of HNS is capped at 2.04 billion.

Auction System

Handshake domains are allocated through a Vickrey auction system, where bidders are unaware of the bids placed by others. The highest bidder wins the domain, but only pays the second-highest bid amount. This system ensures fairness and efficiency in the allocation of domain names.

Wallet and Storage

Users can store their HNS coins in a Handshake wallet, which allows them to manage their domain names and participate in auctions. The wallet is necessary for bidding on and registering Handshake domains.

Proof-of-Work and Proof-of-Stake

Handshake uses a hybrid proof-of-work and proof-of-stake system to secure its network. Proof-of-work involves solving complex mathematical puzzles to validate transactions, while proof-of-stake selects nodes based on the amount of HNS they hold. This hybrid approach ensures the security and decentralization of the Handshake network.

Decentralized DNS

Handshake domains are registered on a blockchain network, which provides a decentralized alternative to traditional DNS systems. This decentralized approach removes the need for centralized authorities like ICANN and Certificate Authorities, ensuring that domain names are more secure and resistant to censorship.

Use Cases

Handshake domains can be used for various purposes, including websites, online services, and even as a registrar to sell domains to other users. They offer a competitive edge for businesses and individuals who value security, privacy, and full control over their online presence.

In summary, the Handshake (HNS) cryptocurrency is a key component of the Handshake protocol, enabling the decentralized allocation and management of domain names. Its blockchain-based system ensures security, privacy, and censorship resistance, making it an attractive alternative to traditional DNS systems.

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Handshake's strengths

The token Handshake (HNS) has several strengths that contribute to its value and utility:

  1. Decentralized Domain Management: Handshake operates as a decentralized, peer-to-peer domain naming protocol, allowing for greater control and security over domain names compared to traditional centralized systems.

  2. Enhanced Privacy and Security: Handshake domains ensure that DNS records can only be modified by the domain owner, preventing censorship and malicious redirection. Additionally, registration does not require personal data, and ownership is verified through public-key cryptography.

  3. Flexibility and Customization: Handshake domains can be used for various purposes, such as hosting websites or creating custom TLDs. This flexibility allows users to manage their domains more effectively.

  1. Prevention of Spam: The use of HNS tokens in auctions and transactions helps prevent spam on the network, ensuring that domain names are allocated fairly and efficiently.

  2. Community Involvement: Handshake has a strong focus on community involvement, with a significant portion of the initial coin supply granted to the Free and Open Source Software community. This encourages participation and fosters a sense of ownership among users.

  3. Decentralized DNS Alternative: Handshake provides an alternative to the traditional DNS system, which is often seen as vulnerable to hacking and censorship. By using blockchain technology, Handshake offers a more secure and resilient domain name system.

  1. Potential for Growth: As more users join the Handshake network, the value of HNS tokens is expected to increase, making it a potentially lucrative investment opportunity.

These strengths collectively contribute to the value and utility of the Handshake token (HNS), making it an attractive option for those seeking a decentralized and secure domain name system.

Handshake's risks

Handshake (HNS) is considered a high-risk investment due to several factors. One major concern is the risk of a 51% attack, which could compromise the security of the blockchain. This type of attack requires specialized equipment different from the standard Bitcoin SHA256 gear, making it a significant threat to the Handshake protocol.

Another significant risk is the high risk score assigned by InvestorsObserver, which indicates that the token is susceptible to price manipulation due to limited trading and market capitalization. This score is based on recent changes in volume and market cap, highlighting the potential for significant price swings.

Additionally, the use of proof-of-work (PoW) consensus, which is similar to Bitcoin's, raises concerns about the environmental impact and energy consumption of the network. This could lead to increased costs and decreased adoption, affecting the overall value of HNS.

Lastly, the decentralized nature of Handshake, while providing benefits such as security and privacy, also means that users are fully responsible for managing their own domains and transactions. This can be a barrier for those unfamiliar with blockchain technology and cryptocurrency, potentially limiting adoption and increasing the risk of user error.

Overall, investors should carefully consider these risks before investing in Handshake (HNS).

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Did Handshake raise funds?

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Handshake’s team

  • Joseph Poon: A prominent member of the Handshake team, known for his role in creating Bitcoin's Lightning Network.
  • Christopher 'J.J.' Jeffrey: The CTO of early bitcoin startup Purse, another key member of the Handshake team.
  • Tieshun Roquerre: The founder of Namebase, a service closely associated with Handshake, who played a significant role in the project's development and implementation.
  • Steven McKie: The technical manager of HandyBrowser and CEO of Amentum, involved in the technical aspects of Handshake.
  • Eric Meltzer: An investor in Handshake, who contributed to the project's development and was involved in discussions with Sci-Hub.

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