AlternativeNaming SystemOverview

July 9, 2024 | Proprietary and Confidential

1Agenda1

2

Alternative Naming System Overview• What is it?
• Technical and commercial overview

How should we understand this from anInternet Policy perspective?
• Impact of general Internet users• Impact on core concept of Internet• Impact on cybersecurity and abuses• Impact on compliance

July 9, 2024 | Proprietary and Confidential2

Who we are?

InternetCommunity

Legal
Community

Cybersecurity
Community

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What is Alternative Naming System?

• Anything that sit outside the ICANN-administered DNS system

July 9, 2024 | Proprietary and Confidential

4What are examples of Alternative Root?
• Handshake or other blockchain-baseddomain names• Russian National Domain Name Systemo Protect Russia Internet sovereignty• Yeti DNS Projecto testbed of everything runs on IPv6

• IPv9 / .chn - 「The 2nd Global Internet」
July 9, 2024 | Proprietary and Confidential

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Most impactful Alternative Naming System

Web3 Domains / NFT Domain /Blockchain Domain / Crypto-domain~6.5M

July 9, 2024 | Proprietary and Confidential

6Evolution of the Web“Web that understands itself”
or “Semantic Web”
Web 1.0

Web 2.0“The HypertextWeb”
1989-now“The Social Web”
2004-now

Tim Berners-Lee

Web 3.0

Concept: Tim Berners-Lee - 1999
Coined: John Markoff, NYTimes, 2004

Tim O’Reilly, Dale
Dougherty 2004

Web3

“Decentralized web based on
Blockchain”

Gavin Wood, Co-founder ofEthereum, 2014

Source: “World Wide Web and Its Journey from Web 1.0 to Web 4.0”, (IJCSIT) International Journal of Computer Science and Information Technologies

July 9, 2024 | Proprietary and Confidential

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Coined by Ethereum co-founder Gavin Wood in 2014 - to fight the centralized
power and dominance of a handful of Web2 giants like Facebook, Amazon, orGoogle by creating a decentralized version of the internet.

Ethereum

WalletData andMoney
July 9, 2024 | Proprietary and Confidential

8Has Web3 Overtaken the Internet?
Dapp daily user
0%Dapp daily user
1%

2.2 million vs 5 billion

95% app failed, even then,Dapp’s still only 1% of total size
Successful App
5% total99%

App users
100%

Dapp daily user

App users

Dapp daily user

App users

July 9, 2024 | Proprietary and Confidential

9Sir Tim Bernard Lee
Father of the Internet
Inventor of WorldWideWeb= the semantic web (語義) – Meaning that things are
Won’t useWeb3.0
Blockchain！！
connected meaningfully. i.e. connect everything on the web at thedata expensive
level“They’re too slow too
and too public”
https://www.cnbc.com/2022/11/04/web-inventor-tim-berners-lee-wants-us-to-ignore-web3.html

July 9, 2024 | Proprietary and Confidential

10How blockchain works?

Source: https://www.geeksforgeeks.org/how-does-the-blockchain-work/

July 9, 2024 | Proprietary and Confidential

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Blockchain/web3/NFT Domain — Why does it exist?

Public Key
July 9, 2024 | Proprietary and Confidential

12How blockchain “domain” works?
4. Resolve through DNS-like system

2. Smart Contract
creation(aka association domainname and public key)

1. Mint
3. NFT
image
created3.5. NFT storedin crypto-wallet
July 9, 2024 | Proprietary and Confidential

13What is NFT (Non-Fungible Token)?
Non-Fungible = not replaceable by another identical item; notmutually interchangeable.

July 9, 2024 | Proprietary and Confidential

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NFT Domain•.wallet•.coin•.zil•.crypto•.x•.bitcoin
•.888
•.nft
•.dao
•.blockchain.ETH∞

July 9, 2024 | Proprietary and Confidential

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“Real” internet vs Web3InternetWorks anywhere, any devise

Decentralised technology, but with aconcentrating trend
Decentralised in policy – ICANN is not
one central authority, but multistakeholder model

Web3
Work only if you have plugin, orthrough a “linking” service in normal
domain nameDecentralised in fundamental
technology, but actually very
concentrated in many aspects
Centralised in policy(DAO – but what about ownershipconcentration?)

July 9, 2024 | Proprietary and Confidential

16Agenda12

Alternative Naming System Overview• What is it?
• Technical and commercial overview

How should we understand this from anInternet Policy perspective?
• Impact of general Internet users• Impact on core concept of Internet• Impact on cybersecurity and abuses• Impact on compliance

July 9, 2024 | Proprietary and Confidential

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NFT Domain –impact of general
Internet users
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Consumer harm

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Consumer protection1 HNS = 0.36 USD
1 HNS = 0.022 USD

14,400,000 USD
To
880,000 USD

July 9, 2024 | Proprietary and Confidential

20Gas fee – the hidden cost

July 9, 2024 | Proprietary and Confidential

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What if we remove Gas-fee?
- Unstoppable used to be using Ethereum, which
has really high gas fee- Move to Polygon – a low-cost layer-2 chain basedon Ethereum- Can it be free forever?
- Would the consumer lose the domain if it doesn’tsurvive?
- What’s the ICANN policy in comparison?

July 9, 2024 | Proprietary and Confidential

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NFT Domain –impact on core
concept ofInternet
July 9, 2024 | Proprietary and Confidential

23One World, Crashing Internet- “Emercoin” created “.Coin” earlier
than Unstoppable- Built on different blockchain- Unstoppable terminated .COIN
based on principle of first come firstserve

No evil ICANN, no one can delete it?
“Naming collisions are dangerous for theUnstoppable community and for Web3 as awhole,” the firm wrote. “Multiple versionsof a [top-level domain] could cause chaos.
July 9, 2024 | Proprietary and Confidential

24Battle of the .wallet• Gateway.io – created .wallet in July
31, 2020 under Handshake• Unstoppable – create .wallet in
Summer (US) 2021 under theirown chain• Unstoppable filed a lawsuit suing
Gateway to “engaged in a
campaign of chaos”

July 9, 2024 | Proprietary and Confidential

25Warning from ICANNJuly 9, 2024 | Proprietary and Confidential26

Web3 “New” initiative to re-create ICANN – Nov 2022
• “Advance interoperability of Web3 domain registries andbetter secure digital identities by preventing, for example,cybersquatting.”• Sandy Carter, senior vice president and channel chief ofUnstoppable Domains:• coalition is “dedicated to creating the equivalent to how Web2
domain names are organized by the Internet Corporation for
Assigned Names and Numbers (ICANN)”• “Today, there is no such governing body for Web3 domains”,
she noted.

July 9, 2024 | Proprietary and Confidential

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Blockchain/NFT Domain going into ICANN world• More and more “Web3Domain” companies
planned to apply for NewgTLD• Some have even “applied”
Before next round
openedJuly 9, 2024 | Proprietary and Confidential

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NFT Domain –impact on
Cybersecurity andDNS abuses
July 9, 2024 | Proprietary and Confidential

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Cyber-security – is blockchain really safe?

Yes!
4. Resolve through DNS-like system

2. Smart
Contract
creation
1. Mint

This is where we do DNS
hijacking (Kaminsky Attack)- Blockchain is probably
immune to it as it isimmutable

3. NFT
image
created3.5. NFT
stored incrypto-wallet

What about here?

July 9, 2024 | Proprietary and Confidential

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Cyber-security – is blockchain really safe?
• Huge cybersecurity concern overblockchain technology
1. Digital asset can still be stolen by
hijacking where you store theprivate key
2. Once it is done, it cannot bereversed

July 9, 2024 | Proprietary and Confidential31Web3 is good for phishing?
-Link to cryptocurrency for payment
A lot of hype but no one really understands it
Easy to hide identity
Cannot reverse the money once you stole it
IPFS hosting is hard to takedown – might be evenpermanent

July 9, 2024 | Proprietary and Confidential32Web3 phishing example

The fraudulent page linked inthe email. It leads to a phishingpage hosted on Skynet.
A fax-themed email linking to a fraudulent
page hosted on the Microsoft Customer Voice
service.
Source: https://cofense.com/blog/phishing-campaigns-abusing-web3-platforms-increases-482-in-2022/

The Skynet-hosted phishing pagelinked by the campaign
July 9, 2024 | Proprietary and Confidential33

Web3 phishing is also non-existence• Everything requires a REAL URL as
no one can really access Web3
content• Done via “Gateway URL” provider• What does Web3 add-value tointernet security in practice?

Most popular services used to create “gateway” URL for the phishing attack.
Source: https://cofense.com/blog/phishing-campaigns-abusing-web3-platforms-increases-482-in-2022/

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Crypto-related domain in traditional domain system• More than 30,000 crypto-related
domains and subdomains wereidentified as suspicious or atleast worth investigating.
• 94 percent of the sampleddomains either had privacyprotected, undisclosed, orredacted registrant email
addresses, making it hard toattribute ownership.

July 9, 2024 | Proprietary and Confidential

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NFT Domain –impact onIntellectual Propertyand Compliance
July 9, 2024 | Proprietary and Confidential

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ICANN Principle to uphold One World One Internet• Very important text that sets
out the commonly accepted
policy of the Internet• ICP-1 – set out theresponsibility of IANA
• ICP-2 – set out the criteria of
new Regional InternetRegistries (RIR)
July 9, 2024 | Proprietary and Confidential37ICP-3

July 9, 2024 | Proprietary and Confidential

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Cybersquatting and IP Abuse• $1,520 once off with no renewal fee, BUT• $74 USD per year recurring fee for “Vault”

July 9, 2024 | Proprietary and Confidential

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Intellectual Property Infringement• Immutability• Not actually, most Web3 contents are saved in traditional hosting
infrastructure. But still, it is very hard to know

July 9, 2024 | Proprietary and Confidential

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ICANN compliance – DNS Abuse• A specific requirement topromptly takeappropriate mitigation
actions

July 9, 2024 | Proprietary and Confidential

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Blockchain/web3/NFT Domain — Why does it exist?

Public Key
July 9, 2024 | Proprietary and Confidential

42Nature of Blockchain and complication on compliance

Public Key• Blockchain domains are mainly used tofacilitate easier identification and accessto blockchain wallet• Web3 domain is similar to theusername/account name of a wallet• Wallet is “kind of” a financial tools – notregulated as yet in most countries• Crypto assets can be hijacked• Web3 domain could expand the role ofdomain into banking/investment/finance• Is ICANN ready for this? Does it matter?
July 9, 2024 | Proprietary and Confidential

43Internet Fragmentation• IPv9?
• Official blockchain DNS for
China or Russia?

July 9, 2024 | Proprietary and Confidential

44Questions?
Alban Kwan

alban.kwan@cscglobal.com

Alban Kwan

 alban.kwan@cscglobal.com
linkedin.com/in/albankwan/

linkedin.com/in/albankwan/
cscdbs.com

cscdbs.com
CSC Digital Brand Services

CSC Digital Brand Services@cscdbs@cscdbs
July 9, 2024 | Proprietary and Confidential

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