Basics of IDN Domains and Their Domain Investing Potential

Have you ever wanted a domain name in your native language? Or wondered how to reach customers who use different alphabets? That's where Internationalized Domain Names (IDNs) come in.

 

IDNs open up a world of possibilities by letting you register domains with characters beyond just A-Z and numbers. Think accents, Chinese characters, Arabic script, Cyrillic letters, and more. For businesses and investors alike, IDNs help you connect with global audiences in their own languages, bridging the accessibility gap and making them more comfortable with interacting with a website or domain.

 

In this guide, we'll walk you through what IDNs are, how they work, and why they could fit into your domain portfolio or marketing efforts in 2025. Whether you're looking to protect your brand globally or tap into new markets, understanding IDNs gives you an edge in our multilingual digital world.

 

Understanding IDN Domain Names

Before diving into specifics, it’s important to understand what IDN domain names are.

 

 

What are Internationalized Domain Names?

Internationalized Domain Names, commonly known as IDNs, are domain names that utilize characters beyond the standard ASCII characters—that is, beyond unaccented Roman letters (A-Z), digits (0-9), and the hyphen. An IDN can encompass Latin letters with diacritical marks, or characters from non-Latin scripts such as Arabic or Cyrillic.

 

For example, a domain name might include Unicode characters. These internationalized domain name registrations provide a multilingual dimension to the internet, enabling domain owners to register domains that reflect local languages and writing systems.

 

Importance of Non-ASCII Characters in Domain Names

Using non-ASCII characters in domain names is important because it makes the internet more accessible for people around the world.

 

With IDNs, users can type web addresses in their own languages and scripts, instead of changing them into English letters. This makes it easier to use the internet and helps support different cultures and languages online.

 

How IDN Domains Differ from Traditional Domain Names

International domain names are different from regular domain names because of how they work behind the scenes. Traditional domain names can only use basic English letters, numbers, and hyphens (ASCII characters). In contrast, IDN domains use characters from other languages, like Chinese, Arabic, or Russian, which are part of a Unicode system.

 

Registration Process for IDN Domains

Registering an IDN involves more than typing in a domain. It includes choosing the right registrar and understanding character compatibility. Here are some important things about IDN domain names that’re useful for every domain investor or local business.

 

Steps to Register an Internationalized Domain Name

To register an IDN, you’ll need to use an ICANN-accredited registrar that supports IDN domains. Not all registrars offer this service, so make sure to choose one that is certified to handle IDNs. Once you’ve found the right registrar, you can enter the domain name you want—using characters from your chosen language—and start the registration process.

 

Registering an IDN Domain Name with Dynadot

Here is how you can check what TLD is supported if you want to register your IDN domain with Dynadot:

 

1. First, go to our IDN Search page.

 

 

2. Next, type your domain name in the search bar (for example, you want to register "besthotpot" in Chinese, which will be "最好的火锅") and select the IDN checkbox:

 

 

Not all the TLDs support all the languages, so your choice might be limited. Each registrar usually has a list of the TLDs with supported languages you can refer to. If you scroll down to the bottom of the page, you will find a list of the TLDs with supported languages.

 

Common Registries for IDN Domain Registrations

Domain name registries are usually national or regional organizations that manage the rules for registering domains. They can be run by governments, non-profits, or private companies. They’re approved to handle domain registrations under specific top-level domains (TLDs).

 

While IANA helps manage the overall domain name system, each registry sets its own guidelines for registering domain names, including IDNs. These specifics can vary depending on the registrar and the language or script used in the domain.

 

Encoding and Punycode in IDN Domains

Since IDNs contain non-ASCII characters, they need to be encoded to be recognized by the Domain Name System. Let’s see how encoding non-ASCII characters works.

 

Conversion of IDN to ASCII Format

This process ensures that Unicode-based domain names can function seamlessly in the existing DNS. Let’s take a closer look at how browsers handle this conversion.

 

For IDN domains to work on the internet, they need to be changed into a format the Domain Name System (DNS) can read. This is done using a system called Punycode, which turns Unicode characters into standard ASCII characters.

 

Web browsers do this automatically—they show the domain in its original language, but behind the scenes, they convert it to Punycode so it can be recognized by DNS servers. You can also use an IDN conversion tool to see how this translation looks both ways.

 

How Punycode Works for Encoding Non-ASCII Characters

IDNs facilitate the utilization of domain names that incorporate scripts beyond the Latin alphabet. However, these domain names are recorded in the Domain Name System (DNS) as ASCII strings through Punycode transcription. Sounds a bit complicated? Let’s break this down into a few simple steps.

 

• What is Unicode?

Unicode is an international character encoding standard that provides a unique number for every character across languages and scripts, making almost all characters accessible across platforms, programs, and devices.

For example:

• The letter ü is part of Unicode.

• The Chinese character 中 is also part of Unicode.

Thanks to Unicode, computers and websites can display names, words, and messages in many different languages.

 

• What is Punycode?

While Unicode works well for displaying characters, the Domain Name System (DNS) — which powers the internet — only understands ASCII (a much older character set with just A–Z, 0–9, and hyphens).

 

That’s where Punycode comes in.

 

Punycode is a way to convert Unicode domain names into ASCII so they can be used on the internet.

For example:

Unicode domain: café.com

Punycode version: xn–caf-dma.com

 

 

• Why does this matter?

Thanks to Unicode + Punycode:

• You can register domains in your native language (like straße.de - ‘street’ in English or 東京.jp - Tokyo).

• The DNS can still understand and route them, because they’re converted to Punycode behind the scenes.

 

In simple terms:

• Unicode lets you use any language in domain names.

• Punycode makes those names internet-friendly by turning them into a readable format for DNS.

This is how our domain name "besthotpot" from our previous example, which will be "最好的火锅" in Chinese is translated by Punycode:

 

Examples of Punycode Encoded Domain Names

Here is an example of how non-ASCII domain names are translated to a standardized ASCII-compatible format by using Punycode.

Example 1: The Hindi word परीका, meaning “test,” is written using the Devanagari script. When processed through ASCII-Compatible Encoding (ACE), it is transformed into the A-label form: xn–11b5bs1di.

Example 2: One real-world example is the Korean domain 스타벅스코리아.com, which represents “Starbucks Korea.” Its Punycode equivalent is xn–oy2b35ckwhba574atvuzkc.com.

 

Security and Challenges in IDN Domains

IDN domains offer many benefits, but they also come with certain risks—especially when it comes to online security. One major issue is the possibility of domain name spoofing.

 

Risks of Spoofing in Internationalized Domain Names

 

 

Spoofing happens when someone creates a fake website that looks like a trusted one by using characters that look very similar. For example, an attacker might use a Cyrillic letter that looks almost exactly like a Latin letter, tricking people into thinking they’re on a real website.

 

These types of attacks are called homoglyph attacks. One example is replacing the Latin “a” with the Cyrillic “а.” Even though they look alike, they are completely different characters.

 

Best Practices for Securing IDN Domains

To help protect against spoofing, there are a few things you can do:

• Registries can block domains that mix characters from different scripts, like Latin and Cyrillic.

• Domain owners can register similar versions of their domain name to prevent others from copying it with look-alike characters.

Example 1: The Cyrillic letter “Р” looks like the Latin “P” but sounds like “R.” Someone could register “роol.somedomain” using Cyrillic letters. This domain would look just like “pool.somedomain” in a browser.

Example 2: The Arabic letter “أ” (Alif with Hamza) can look very similar to the Latin letter “I” in certain fonts. As a result, a domain name like bestaأtools.somedomain may appear almost identical to bestaitools.somedomain, even though they are technically different. This visual similarity can be misleading and is a common trick used in domain spoofing.

Browsers can help by showing the domain’s Punycode version when they detect suspicious characters.

 

To protect your brand, it’s also a good idea to register IDN versions and look-alike versions of your domain name, especially if your brand name could be spoofed easily.

 

Challenges in Managing IDN Domain Registrations

Managing IDN (Internationalized Domain Name) registrations can be tricky because they involve many different languages and writing systems. Just like regular domains, there are rules for how these names can be created.

 

For example, restrictions may apply to the types of characters used, mixing of scripts (such as Cyrillic and Latin), character placement rules, and the overall domain length.

 

These rules help ensure the domains work properly and aren’t misused. Because of all this, registering IDNs can be more complicated than regular domain names.

 

The Future of IDN Domains

 

 

As digital globalization grows, IDNs are poised to play an even more prominent role in the internet ecosystem. Here are some trends in internationalized domain names and their impact on global internet accessibility.

 

Trends in Internationalized Domain Names

Usage The usage of IDNs is expected to grow as the internet becomes increasingly globalized and multilingual. As more internet users access the web in their native languages, the demand for IDN domains will continue to rise.

 

With new gTLDs, more opportunities to register IDNs will become available, allowing businesses and organizations to reach a wider audience. This trend might lead to innovation and further development in the domain name system.

 

Impact of IDNs on Global Internet Accessibility

IDNs make the Internet easier to use for people who read and write in a diverse array of scripts. By allowing domain names in many different languages and writing systems, IDNs help more users go online using familiar characters.

 

They also let businesses keep their brand names in local scripts, which helps with marketing and building trust. This makes the internet more inclusive and user-friendly for people all over the world—and it’s one reason why IDN usage continues to grow.

 

Potential Developments in IDN Registration and Management

In the future, we can expect improvements in how IDNs are registered and managed. This may include better security, support for more characters, and easier registration steps.

 

As technology evolves, the domain name system may incorporate new encoding schemes and validation techniques to ensure the integrity and security of IDN domains.

 

Collaboration between ICANN, registrars, and the Unicode Consortium will be crucial in shaping the future of IDNs. New technology and global standards for characters could help make IDNs even more effective and secure.

 

What Should Domain Investors Know About IDNs?

 

 

If you’re a domain investor, it’s important to understand how Internationalized Domain Names (IDNs) work before adding them to your portfolio.

 

Knowing how their encoding works can help you manage IDN domains more effectively and avoid technical issues.

 

Key Factors to Consider When Investing in IDN Domains

When investing in IDNs, there are a few important things to keep in mind. IDN domain names use non-Latin scripts, and these must be converted into Punycode so they can be registered and accessed online. You’ll also need to choose domain names that make sense for your target audience based on language and location.

 

How do International Market Trends Affect IDN Domain Value?

International market trends significantly influence the value of IDN domains, particularly as global digitalization increases. As businesses seek to appeal to diverse audiences, the demand for these domain names grows, enhancing their marketability.

 

Successful Strategies for IDN Domain Investment

To succeed with IDN domain investing, start by researching the market. Look for growing trends and areas where people are using the internet in non-Latin scripts. This can help you spot valuable domain opportunities.

 

It’s also smart to diversify your portfolio by buying different types of IDN domains. This way, if one area slows down, others might still do well.

 

Talking to local communities can give you insight into what kinds of domain names people actually use. Focus on registering names that are short, easy to remember, and relevant to the target audience.

 

Finally, stay active in domain forums and keep an eye on industry news to make better investment choices.

 

Common Questions About IDNs

What is the use of IDNs?

IDNs let people register and use domain names in their native scripts and languages. This makes the internet more accessible and user-friendly for the billions of people who don't use the Latin alphabet.

 

What are some examples of website names using IDNs?

Popular brands often register IDN versions of their domain names in markets where other scripts are common. For example, a company might use both example.com and 例子.com to reach English and Chinese-speaking customers.

 

What is IDN DNS?

IDN DNS refers to how the Domain Name System handles internationalized domain names. It uses special encoding (Punycode) to make non-ASCII characters compatible with the DNS infrastructure.

 

What is an Example of an Internationalized Domain Name?

For example, café.com uses the accented “é” character to reflect a local language nuance. In countries like Japan, domains such as 日本.jp are used to cater to native script users.