Understanding .BTC Domains: A Detailed Guide to Bitcoin Name Service (BNS)

• Understanding Bitcoin Name Service (BNS) and .btc Domains
• A Closer Look at Bitcoin Name Service
• How Do .BTC Domains Work?
• Purchasing Bitcoin Domains

Understanding Bitcoin Name Service (BNS) and .btc Domains

The Bitcoin$42,260 -0.64% Name Service (BNS) provides a unique opportunity for cryptocurrency users by allowing them to link an easily recognizable, human-friendly .btc domain name to their Web3 wallet. This enhances the user-navigation of the Bitcoin Web3 interface. This article examines the functionality of Bitcoin Name Service (BNS), the operation of .btc domains, and the process of acquiring a .btc domain.

A Closer Look at Bitcoin Name Service

Bitcoin Name Service operates as a decentralized name database that is secured on the Bitcoin blockchain, providing Web3 usernames registered by Stacks. Functioning as a Web3 directory, BNS maps out human-readable host names like unchained.btc to complex alphanumeric wallet addresses. BNS' objectives align closely with that of the Web2 Domain Name System (DNS), providing an interface for purchasing, registering, managing, and looking up domain names.

Though DNS and BNS address the same need, they differ in terms of structure and design. Unlike DNS that relies on centralized servers, BNS operates on peer-to-peer server systems that offer security and resistance to censorship. BNS names possess three distinctive traits: they are universally unique, human-meaningful, and strongly owned.

Utilizing the security and resilience of the Bitcoin network, the Bitcoin Name System facilitates a seamless user experience for Bitcoin Web3 users within the Stacks ecosystem. This enables users to send and receive STX, as well as Stacked-based tokens and NFTs.

How Do .BTC Domains Work?

A .btc domain serves as a specific type of blockchain name that is registered and stored on the Bitcoin network as an NFT. The .btc domains are maintained on the BNS and registered via a smart contract on Stacks, utilizing Bitcoin's security features and implementing the Clarity smart contracting language to create a decentralized name registry.

Ownership of each .btc name is recorded on the Bitcoin blockchain as a hash. Every domain and subdomain on BNS contains Decentralized Identifiers (DIDs) that provide a permanent identifier for public keys and are compatible with other systems that use DIDs.

.BTC names are structured into a global name hierarchy in three layers: namespaces, BNS names, and BNS subdomains. Namespaces are analogous to DNS top-level domains. BNS names are documented directly on the blockchain, and their creation relies on a namespace containing the BNS name already existing. BNS subdomain records are stored off-chain and are owned by separate private keys.

Registration of .btc names occurs through a transaction with the BNS smart contract on Stacks, ensuring that BNS domains are synchronized and replicated to all other Stacks nodes globally.

Purchasing Bitcoin Domains

To acquire a .btc domain, users require a wallet that supports such domains, such as Hiro Wallet or Xverse. Additionally, users need STX in their wallets to buy a Bitcoin domain on BNS with new domains costing 2 STX, excluding transaction fees. Users can purchase STX from an exchange and transfer it to their Stacks-compatible wallet.

The process to buy a Bitcoin domain is as follows:

1. Search for the desired .btc name at https://btc.us/ and enter the name to be registered in the search bar on the landing page. Users will be informed of the name's availability, the STX rate, and the duration of ownership (5 years for 2 STX).
2. Create a Bitcoin-connected Stacks account to initiate the purchase after confirming the availability of the name. Connect the Stacks-compatible wallet to the site for login.
3. After logging in, users will be prompted to purchase the chosen .btc domain. Submit the 2 STX, which provides ownership of the domain for five years. This transaction will incur a small gas fee. Upon completion of the transaction, the Bitcoin domain name will appear in the user's Stacks wallet.

Alternatively, users can purchase a second-hand Bitcoin domain in secondary marketplaces. BNS names provide users with unique web3 identities, simplifying transactions and reducing errors.

Edited by Jonathan Stoker