BNS stands for Bitcoin Name Service, a decentralized domain name system that allows users to register and manage easy-to-read .btc domain names. These domains are associated with Bitcoin wallet addresses and serve as digital identifiers in the Bitcoin ecosystem.
They are created through smart contracts on the Stacks blockchain and stored on the Bitcoin blockchain. BNS was designed to simplify how we interact with the complex and long alphanumerical wallet addresses by organizing them in a decentralized name registry and making interacting with the decentralized web (Web3) as simple as interacting with the current web (Web2).
What is BNS?
The Bitcoin Name Service (BNS) is a protocol that translates complicated wallet addresses into human-readable names, similar to how the traditional Domain Name System (DNS) replaces IP addresses with domain names. Users can link .btc domains— that are easy to read and to remember — to their Bitcoin and Stacks wallet addresses.
For example, you could register a .btc domain with your name or nickname (johndoe.btc) or with your company name (johndoeshoestore.btc). This domain name will make it much easier to make transactions, as you can use them and share them instead of your complicated wallet address (bc1qxy2kgdygjrsqtzq…).
BNS names are registered through a smart contract on Bitcoin’s Layer 2, Stacks and have three key characteristics:
They are completely unique, ensuring no two people register the same name.
They are human-meaningful and easy for people to understand and remember.
They are strongly owned, as only the owner can be the administrator.
Other types of name systems used in Web2 have some of these attributes but not all. For example, website domain names (DNS) are unique and human-readable but are not fully owned by the user. Git clients, on the other hand, are human-readable and strongly owned, but not unique.
How Does BNS Work?
The BNS name service benefits from the security and resilience of the Bitcoin network. Let’s see how it works:
Users register their chosen .btc domain names through smart contracts on the Stacks blockchain.
Once registered, the .btc domain is stored and documented as an NFT on the Bitcoin network and accessible through your wallet.
The domains use Bitcoin’s security features and implement the Clarity smart contracting language to create a decentralized name registry.
.btc domain names are organized in layers, like addresses are organized in a big directory:
Namespaces are similar to DNS top-level domains; they are names at the top of the hierarchy that anyone can create but not own.
BNS names are recorded directly on the blockchain, and their creation depends on a namespace containing the BNS name already existing.
BNS subdomain records are stored off-chain and are owned by separate private keys to reduce transaction costs and increase processing speed.
Every domain and subdomain on BNS has Decentralized Identifiers (DIDs) that provide an eternal identifier for public keys and are compatible with other systems that use DIDs, potentially serving as universal logins across multiple platforms.
How Can I Register for a BNS Name?
Registering for a BNS name is as simple as setting up usernames or domain names on Web2 platforms. Here's how you can register yours using your Leather wallet:
Start by visiting the btc.us website to check the availability of the BNS name you want to register.
On the top right corner, there is a button to “Sign In." This is where you connect your Leather wallet.
You can only have one BNS per wallet address, so ensure you select one with no .btc domain tied to it.
Once connected, enter the name into the search function to see if it is available for registration.
Once you find an available name, follow the website prompts to register it.
During the registration, you'll be asked to provide certain details to complete the process, like the wallet address you’d like to link the domain name to.
You will need STX tokens to pay for the domain and the network fees. Go ahead with the transaction and approve it on your wallet to finalize the registration.
If your purchase was successful, you’ll see your new BNS in your Leather wallet under “Collectibles” and written on top of your balance.
You can now manage and use your very own BNS domain.
BNS names, like traditional domain names, have expiration dates determined by their namespace, so check the expiration regularly and renew to maintain ownership.
Why Are BNS/.btc Names Good for Web3 Users?
BNS/.btc names offer significant advantages for Web3 users by improving user experience and ensuring secure, simplified interactions within the decentralized web. Here’s how:
They simplify the user experience and help reduce errors and mistakes.
It’s like having a username for your digital assets: if you have a .btc name and you want to send STX peer-to-peer or access a dApp, you can simply share a handle that’s short and sweet rather than a complicated, long Bitcoin address.
They are globally unique, meaning no two people can have the same name, and also remain a very secure, censorship-resistant, and reliable way to interact with the decentralized web.
They promote interoperability and integration across various decentralized platforms and protocols inside the Bitcoin ecosystem, fostering a more connected and cohesive decentralized web.
Challenges and Limitations of BNS
While BNS offers significant benefits, it also has several challenges and limitations that affect its adoption and functionality. Here are the key ones:
BNS domains are still relatively new and primarily recognized within the crypto community, which limits their utility in broader commercial environments.
Hosting websites on blockchain domains involves complexities, including limited support from hosting services.
Integrating BNS into existing systems can be expensive and time-consuming, posing a significant barrier for many organizations.
Likewise, the evolving landscape of blockchain regulation creates uncertainty for businesses, further complicating its adoption.
The censorship resistance of NFT domains allows for potential misuse from individuals engaged in illegal activities like the sale of stolen data or other illicit goods.
As more users adopt BNS, the increased load on the blockchain can lead to reduced efficiency and higher operational costs. Scaling solutions like Bitcoin L2s are seeking to solve for this.
Managing private keys always poses security risks, and for BNS domains, it’s no different.
Other blockchain naming services may not be fully compatible with BNS, complicating its use across non-Bitcoin blockchain platforms.