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ICANN and Microsoft are wary of blockchain domains

ICANN and Microsoft independently and almost simultaneously raised the issue of so-called blockchain domains. They are also known as non-DNS domains and have become quite popular lately. Non-DNS top-level domains include, for example, .crypto, .wallet, .coin, .eth and a number of others. All of these domains are not included in the IANA database, and therefore, information about them is absent from the classic hierarchical DNS system on root DNS servers. Initially, these top-level domains were created for the convenience of cryptocurrency transfers: a blockchain domain name is much easier to remember and relay than a long sequence of characters that make up a cryptocurrency wallet number. But beyond that, blockchain domains can also serve to host websites on a non-DNS peer-to-peer network. What makes such sites different is that they cannot be shut down or blocked by a court, domain registrar or any other authority – only the registrant can do this (who, at the same time, can remain anonymous). This feature of blockchain domains is billed as a means of combating censorship and a step toward a completely independent internet.

However, sites on such domains cannot be opened with regular browsers. To visit them, you need to install special browsers or extensions, and change the system settings. This is what Alain Durand, ICANN's principal technologist, points out in his post in the corporation’s blog. He does not generally speak out against blockchain domains but notes that some ICANN-accredited registrars have begun to offer such domains to customers along with regular ones. However, the registrars fail to provide the necessary clarification. According to Durand, this practice may be confusing for less knowledgeable users. It would certainly be disappointing to buy a domain for your site, only to later find out that the site is not indexed by search engines and cannot be accessed from a regular browser.

Microsoft took a tougher stance on the same topic. It presented a Digital Defense Report, in which, along with traditional threats such as phishing, ransomware attacks, etc., it listed blockchain domains. They are called "the next big threat." According to Microsoft analysts, the rise in popularity of such domains will inevitably catch the attention of cybercriminals. It is impossible to shut down blockchain domains or to identify their registrants, which makes sites on blockchain domains ideal for cybercriminals. There may be some exaggeration in this: since such sites are not accessible to regular browsers, it is very difficult to use them to spread spam or malware. Nonetheless, the fact that ICANN and Microsoft have both raised the alarm over blockchain domains is quite telling.

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