Decentralized Naming: A Pathway to Onboarding the Next Billion Bitcoin Users

Mike Carson, the founder of Spaces Protocol, emphasizes the need for decentralized domains on the blockchain, especially in light of recent security incidents such as the Squarespace DNS attack.

Reevaluating Domain Security in a Centralized World

Recent attacks on centralized domain services have exposed significant vulnerabilities. Carson advocates for a shift toward decentralized naming systems as a more secure alternative.

On July 11, an attack on the Squarespace DNS registry compromised over 100 crypto projects, leading to phishing problems that resulted in financial losses for users. This incident serves as a reminder of the risks involved in relying on centralized entities for crucial digital assets.

The Case for Blockchain-Based Domains

Carson argues that domain names are digital assets that should be managed on a blockchain rather than by centralized entities. His extensive experience with domain registrars led him to conclude:

“When I owned and managed three ICANN-accredited registrars, I realized that domain names are digital assets and should be managed on a blockchain and not by centralized trusted third parties.”

He draws a parallel between domain registrars and traditional banks, questioning why individuals should depend on third parties to secure personal domains or financial assets.

Carson also cites instances of government censorship as additional evidence for the need for a decentralized approach. For example, the Spanish government once raided the offices of a domain registry, highlighting the risks of centralized control over domain names.

Bitcoin as the Foundation for Decentralized Domains

Having contributed to various naming services, Carson asserts that Bitcoin is the optimal platform for decentralized domain names. He believes:

“Bitcoin is the most secure and decentralized proof-of-work blockchain, by far. It makes sense that decentralized naming should be anchored in the Bitcoin block space.”

Spaces Protocol was developed with the aim of ensuring that domain names could scale widely while maintaining a minimal footprint on the Bitcoin blockchain. Carson expresses his vision:

“I think decentralized naming can bring the next billion users to Bitcoin. There are hundreds of millions of domain names and social media companies have billions of users.”

He concludes that if naming is as pivotal to society as money, then utilizing Bitcoin’s blockspace for this purpose is essential. Carson envisions naming as the next major application built on Bitcoin, emphasizing its role in enhancing security and decentralization in the digital realm.