The Internet Corporation for Assigned Names and Numbers (ICANN), plays a pivotal role in maintaining the security, stability, and interoperability of the internet. As a regulatory body, it also ensures to stimulate competition and develop policies for unique Internet identifiers.
ICANN’s Role in the Internet Ecosystem
ICANN is at the heart of the domain name management system, overseeing the registrar accreditation process. To be accredited, an entity must meet strict criteria including significant financial considerations, such as a minimum working capital. Following the approval of the application, an accreditation agreement is signed with ICANN. This regulatory framework ensures that the internet remains a globally open and accessible platform, safeguarding the security and stability of the domain name system.
Accreditation of Freenam and Unstoppable Domains by ICANN
Recently, ICANN accredited two companies specializing in blockchain technologies: Freenam and Unstoppable Domains. These accreditations were surprising, especially considering these entities were once critics of ICANN. This integration symbolizes a significant evolution in the internet ecosystem, reflecting an openness towards technological innovations and new paradigms in domain name management.
Freenam and Unstoppable Domains can now offer gTLDs (Generic Top-Level Domains), top-level domain extensions used globally, like “.com” or “.net”, and country-specific ccTLDs (Country Code Top-Level Domains), such as “.fr” for France or “.de” for Germany.
Before Accreditation: The Web3 Domain Offering
These entities already offered Web3 domain names, such as “.eth” or “.wallet”. These domain names differ radically from traditional extensions like “.com” as they do not name an IP address but rather a public key used for sending and receiving crypto assets on the blockchain, similar to an interactive IBAN capable of not only facilitating financial transactions but also interacting with smart contracts.
A Web3 domain is designed to be uncensorable and immutable. It allows users to link an easily memorable blockchain address to their crypto wallet, website, or social media profiles, without worrying about censorship or suspension of their domain name by a third party. These technical and functional characteristics invite us to question the suitability of the term “domain name”. Some authors suggest they be called “digital wallet names”.
While gTLD-type classic domain name extensions are assigned and managed under the control of ICANN, there is no international entity or organization for Web3 domain names, which are registered on a public blockchain, inherently decentralized. Moreover, these Web3 domain names are issued by naming companies that do not retain any administrative rights over these domain names or the smart contracts of the issued NFTs.
Future Perspectives
This accreditation is likely to intensify competition in the domain name sector, offering more choices and innovative features to users, in line with blockchain advancements. Benefits for end-users include more choices and enhanced security, as no third party can intervene to modify or delete these blockchain domains, thus eliminating the need for periodic renewal.
Conclusion
This new step in domain name regulation underscores ICANN’s continuous adaptation to new technological realities and its crucial role in facilitating an orderly transition to more innovative and secure domain name systems.
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