In April 2021, the UNR registry auctioned off the management rights for 23 new generic top-level domains (gTLDs) that it previously managed. Eight months on, ICANN is still declining to approve the gTLD transfers. Domain Incite has solved this mystery.
The UNR registry created non-interchangeable non-fungible tokens (NFTs) and sold them along with the management rights. Thus, in effect, new top-level block-chain domains have been created. These decentralized domains are based on Ethereum block-chain technology. However, the IANA database and the DNS root servers have no information on them. Initially, block-chain domains were created to facilitate crypto-currency transactions. It is also possible to create websites on these domains, but these websites cannot be accessed using ordinary browsers.
UNR actions set a precedent with unpredictable consequences. On one hand, unhappy users are already indignant over the delay. The company Dot Hip Hop that purchased the .HIPHOP domain is demanding that ICANN expedite the domain zone transfer approval process. On the other hand, ICANN’s delays are understandable. First, registries do not own gTLDs. ICANN allows them to manage the domains, and it can deprive them of these rights if they violate contract terms. Block-chain domains are their property; registration does not have to be extended, and their owners can easily resell them in the future.
It is therefore easy to imagine a situation where, under a traditional hierarchy, one company manages the .HIPHOP domain, while another manages a block-chain domain with the same name. Apart from administrative confusion, the parallel existence of traditional and block-chain domains is fraught with possible technical issues. According to some analysts, this has the potential to threaten the normal operation of the entire global network.
