How GoDaddy and Other Domain Name Leasing Companies Acquire the Right to Sell Domain Names

Domain name leasing companies like GoDaddy play a crucial role in the digital landscape by connecting individuals and businesses with unique identifiers on the internet. But how do these companies gain the right to sell domain names? In this article, we delve into the process and requirements that involve the Internet Corporation for Assigned Names and Numbers (ICANN) and other major players in the domain name industry.

The Process of Becoming a Registrar

To become a domain name registrar, such as GoDaddy, one must apply to ICANN and undergo a rigorous accreditation process. ICANN, established in 1998, manages the global Domain Name System (DNS), ensuring its stability and security. The process includes several stages:

Step 1: Pre-Application Inquiry

Prospective registrars need to complete a pre-application inquiry form to express their interest in becoming an ICANN-accredited registrar. This step involves submitting a formal Letter of Intent (LOI) and paying a filing fee.

Step 2: Background Check

ICANN conducts a thorough background check to verify the applicant's reputation, financial stability, and compliance with relevant laws and regulations.

Step 3: Technical and Operational Review

Applicants must demonstrate technical and operational competence to manage domain names effectively. This includes providing technical infrastructures and procedures for secure domain name registration, updating, and transfer.

Step 4: Contractual Agreement and Fee Payment

If the background check and technical review are successful, the applicant signs a contract with ICANN. There is an initial upfront fee and ongoing annual fees, which cover the cost of maintaining the DNS system and providing customer services.

Step 5: Domain Registry Licensing

ICANN also requires registrars to obtain licenses from domain registries for specific top-level domains (TLDs). These registries manage the DNS zones and oversee the network of domain name registrars.

For example, GoDaddy, like other registrars, might require licenses from registry organizations such as Verisign (for .com, .net, and .org), Afilias (for .info), and Afilias (for .travel), among others.

ICANN’s Role in Managing the Process

ICANN’s role extends beyond accreditation; it ensures the stability, security, and transparency of the DNS. The organization is responsible for several key initiatives:

Global Public Policy Interest (GPPI)

ICANN fosters a framework for public policy engagement, ensuring that domain name changes reflect the interests of all stakeholders.

Brand Protection

ICANN actively monitors and enforces the use of brand names to prevent cybersquatting and domain name hijacking.

Internationalized Domain Names (IDNs)

ICANN promotes the inclusion of non-Latin characters in domain names to better represent diverse cultures and languages.

Security Threats

ICANN works with various stakeholders to address security threats, protecting the global internet infrastructure from malicious activities.

Understanding the DNS System

The Domain Name System (DNS) is a hierarchical and decentralized naming system for computers, services, or other resources connected to the internet or private network. It associates various information with domain names via mechanisms reliant on a client–server system. When you type a URL into a web browser, the process of converting that domain name into an IP address is carried out by a series of DNS servers.

Each domain name consists of a series of labels, separated by dots. For instance, in the domain name , "example" is a subdomain and "com" is the top-level domain. The structure of this system enables the identification and management of different types of resources, such as websites, email servers, and online services.

Conclusion

As you can see, the process of becoming a domain name registrar involves a multitude of steps and rigorous evaluations. Companies like GoDaddy must not only meet ICANN's stringent requirements but also adhere to the specific policies and agreements with various domain registries. This ensures that the domain name system remains robust, secure, and accessible to all.

Keywords: GoDaddy, domain name leasing, ICANN

Related Articles:

How to Become a Domain Registrar: A Comprehensive Guide Understanding the Internet Corporation for Assigned Names and Numbers (ICANN) Protecting Your Domain Name: Strategies Against Cybersquatting