How do internet domains work? Who are you paying?
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Other comments did a nice job of explaining how the current domain systems work.
In the future things might change, there’s discussions around decentralization of trust that now has accumulated with a select few (donut domains? Verisign?) [Handshake](https://handshake.org/) is one such protocol that allows you to have decentralized trust and hence gives you freedom to have your own TLD, porkbun will even sell you one if you’d like but it’s very much experimental today.
The entire system has so many moving parts that moving away with confidence of not breaking the world is hard, the transition will be slow, but we’ll get there
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