blockchain

ICANN’s Accreditation of Blockchain-Specialized Companies: A New Chapter for Domain Names

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.

Thanks to its expertise in Web 3.0, Dreyfus Law Firm supports you through every stage of your blockchain projects.

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Blockchain Technology: A Revolution in Legal Evidence?

In the field of intellectual property law, the matter of evidence is crucial. Traditionally, electronic timestamping offered a solution. However, these methods remain limited by national frameworks. Conversely, blockchain is a global, reliable, accessible alternative that could become a prominent international standard.

 

How Blockchain Evidence Works

Blockchain is a decentralized technology characterized by transparency and security. Unlike centralized systems, it operates without a single control authority. Each transaction is recorded in a shared ledger, creating a chain of tamper-proof information. Public blockchains are accessible to all, similar to an indestructible public ledger, while private blockchains restrict access. This structure ensures data remains immutable and unalterable.

The system’s security is maintained by miners, who validate transactions by solving complex calculations in exchange for rewards, ensuring the integrity of the information.

 

How to Use Blockchain for Proof

  1. Create a Hash: The document is converted into a unique string of numbers and letters (a hash).
  2. Record on the Blockchain: The hash is registered in the blockchain through a minor financial transaction, making it permanent.
  3. Verification: To prove authenticity, simply compare the current document’s hash with the one on the blockchain. A match confirms its authenticity.

 

Traditional Solutions vs. Blockchain

Traditional evidence solutions, although effective, are often limited to national jurisdictions, posing obstacles internationally. Procedures like notary records or the Soleau envelope do not offer universal protection. Blockchain, however, being open source, offers universal timestamping based on mathematical rules, lowering entry barriers and providing an immutable and traceable proof system.

 

Various Use Cases

  • Creation Protection:
    • Ongoing Protection: Blockchain timestamps each version of a creation (e.g., fashion, jewelry), providing continuous coverage, even for unfinished works.
    • Pre-Patent Protection: During R&D phases, blockchain proves the existence of unpatented inventions, avoiding the need for immediate patent filing.
    • Contributor Traceability: In collaborative projects, blockchain identifies each contribution, reducing authorship disputes.
  • Electronic Signatures: Introduced in France in 2000 and standardized in the EU by the eIDAS Regulation, electronic signatures now include three types: simple, advanced, and qualified. Blockchain is increasingly used in this area to ensure integrity and authenticity, meeting the criteria for simple and advanced signatures. With the implementation of eIDAS 2 in 2024, blockchain could be integrated into qualified electronic signature systems.

 

Current Limitations and Future Prospects

In France, the legal recognition of blockchain evidence is mainly limited to the financial sector. For example, Ordinance No. 2016-520 authorized blockchains to record and transfer unlisted financial assets, like minibonds. Ordinance No. 2017-1674 and Decree No. 2018-1226 further extended their use of shared electronic financial security records. The PACTE Law of 2019 strengthened this by authorizing the recording and circulation of financial assets on the blockchain, including stocks and bonds.

At the European level, Regulation 910/2014/EU, effective since July 1, 2016, validates electronic signatures and timestamps, implicitly including blockchain, as admissible evidence in court, granting them similar legal value to handwritten signatures.

French law relies on a mixed system of evidence: the principle of freedom of evidence with exceptions for legal proof, mainly applied to legal acts. Perfect proof includes written documents (authentic or private), judicial admissions, decisive oaths, and reliable copies. Imperfect proofs, such as blockchain, are subject to the judge’s discretion and do not have predefined probative value by law.

Therefore, it is advisable to use a bailiff’s report. While verifying a digital fingerprint in the blockchain is technically simple and achievable via open-source tools, the judge cannot perform this manipulation. A bailiff, acting as a judicial officer, provides this report, offering technical proof to the judge and facilitating the use of blockchain evidence in legal proceedings.

 

Conclusion

Although blockchain is still considered imperfect proof under French law, its recognition is growing. It could soon become a global standard, surpassing traditional methods. Blockchain is redefining the framework of evidence in intellectual property, offering a solution adapted to the challenges of an international market.

Dreyfus Law Firm offers expert guidance at every stage of creation protection. Our mastery of legal subtleties and global market experience ensures optimal, tailored protection for your specific needs.

 

Dreyfus Law Firm works in close collaboration with a global network of specialized intellectual property lawyers.

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