Handshake
Crypto Overview
Intended Utility
Handshake (HNS) is a decentralized, permissionless naming protocol designed to create an alternative to existing certificate authorities and domain name registrars. The project aims to create a more secure, censorship-resistant, and decentralized DNS root zone that allows users to register, transfer, and update top-level domains (TLDs) without relying on traditional centralized authorities.
Business Model Assessment
The protocol's business model is based on a proof-of-work blockchain where HNS tokens are used for domain name registration, bidding in domain auctions, and network security. The model appears transparent and does not involve any inherently prohibited activities from an Islamic perspective.
Actual Utility and Adoption
The protocol has achieved moderate adoption within the blockchain ecosystem, with several DNS resolvers and blockchain developers integrating Handshake functionality. Current usage primarily focuses on domain name registration and resolution, aligning with its intended purpose. The project maintains active development, with regular updates and improvements to the protocol.
Token Distribution and Founder Analysis
The initial token distribution included a significant airdrop to open-source developers and a fair launch mechanism. The founding team's token allocation was relatively modest compared to other cryptocurrency projects, with clear vesting schedules. Development spending appears to outweigh marketing efforts, suggesting a genuine focus on building infrastructure rather than token promotion.
Technical Implementation
The protocol uses proof-of-work mining for consensus and security, which is considered halal as it involves actual work and value creation. The naming system operates through auctions where participants bid using HNS tokens, representing a legitimate exchange of value rather than gambling.
Crypto Impact
To assign a comfort level investing in Handshake from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Handshake.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.