Nominet gets new CFO

Nominet has recruited Vodafone’s head of finance to be its new CFO.

The company announced today that Carolyn Bedford will join on December 1, and will also take an executive director seat on the board.

She replaces Ben Hill, who was one of several directors removed from the board in a member coup in March 2021.

Comment Tagged: .uk, nominet

It’s ICANN versus the blockchain in Kuala Lumpur

Internet fragmentation and the rise of blockchain-based naming systems were firmly on the agenda at ICANN 75 in Kuala Lumpur today, with two sessions exploring the topic and ICANN’s CTO at one point delivering a brutal gotcha to a lead blockchain developer.

Luc van Kampen, head of developer relations at Ethereum Name Service, joined a panel entitled Emerging Identifier Technologies, to talk up the benefits of ENS.

He did a pretty good job, I thought, delivering one of the clearest and most concise explanations of ENS I’ve heard to date.

He used as an example ICANN’s various handles across various social media platforms — which are generally different depending on the platform, because ICANN was late to the party registering its name — to demonstrate the value of having a single ENS name, associated with a cryptographic key, that can be used to securely identify a user across the internet.

Passive aggressive? Maybe. But it got his point across.

“We at ENS envisage a world where everyone can use their domain as a universal identifier,” he said. Currently, 600,000 users have registered 2.4 million .eth domains, and over 1,000 web sites support it, he said.

He described how ENS allows decentralized web sites, is managed by a decentralized autonomous organization (DAO) and funded by the $5 annual fee for each .eth name that is sold.

Van Kampen had ready responses to questions about how it would be feasible for ENS to apply to ICANN to run .eth in the consensus root in the next new gTLD application round, suggesting that it’s something ENS is thinking about in detail.

While not confirming that ENS will apply, he described how a gateway or bridge between the Ethereum blockchain and the ICANN root would be required to allow ENS to meet contractual requirements such as zone file escrow.

What did not come up is the fact the the string “eth” is likely to be reserved as the three-character code for Ethiopia. If the next round has the same terms as the 2012 round, .eth will not even enter full evaluation.

But the real gotcha came when ICANN CTO John Crain, after acknowledging the technology is “really cool”, came to ask a question.

“What kind of safeguards and norms are you putting in place regarding misbehavior and harm with these names?” Crain asked.

Van Kampen replied: “Under the current implementation of the Ethereum Name Service and the extensions that implement us and the integrations we have, domains are unable to be revoked under any circumstances.”

“So if I understand correctly, under the current solution, if I’m a criminal and I register a name in your space, I’m pretty secure today,” Crain asked. “I’m not going to lose my name?”

Van Kampen replied: “Under the current system, everything under the Ethereum Name Service and everything registered via us with the .eth TLD are completely censorship resistant.”

Herein lies one of the biggest barriers to mainstream adoption of blockchain-based alt-roots. Who’s going to want to be associated with a system that permits malware, phishing, dangerous fake pharma and child sexual abuse material? Who wants to be known as the maker of the “kiddy porn browser”?

If I were Crain I’d be feeling pretty smug after that exchange.

That’s not to say that ICANN put in a wholly reassuring performance today.

Technologist Alain Durand preceded van Kampen with a presentation pointing out the substantial problems with name collisions that could be caused by blockchain-based alt-roots, not only between the alt-root and the ICANN root, but also between different alt-roots.

It’s a position he outlined in a paper earlier this year, but this time it was supplemented with slides outlining a hypothetical conversation between two internet users slowly coming to the realization that different namespaces are not compatible, and that the ex-boyfriend of “Sally” has registered a name that collides with current boyfriend “John”.

It’s meant to be cute, but some of the terminology used made me cringe, particularly when one of the slides was tweeted out of context by ICANN’s official Twitter account.

To learn more about alternative naming systems, read #ICANN's OCTO publication >> https://t.co/LFYjy1KX3w | Emerging Identifier Technologies #ICANN75 pic.twitter.com/mWN7fCc7eR

— ICANN (@ICANN) September 21, 2022

Maybe I’m reading too much into this, but it strikes me as poor optics for ICANN, an organization lest we forget specifically created to introduce competition to the domain name market, to say stuff like “Market, you are a monster!”.

I’m also wondering whether “icannTLD” is terminology that plays into the alt-root narrative that ICANN is the Evil Overlord of internet naming. It does not, after all, actually run any TLDs (except .int).

The language used to discuss alt-roots came under focus earlier in the day in a session titled Internet Fragmentation, the DNS, and ICANN, which touched on blockchain alt-roots while not being wholly focused on it.

Ram Mohan, chief strategy officer of Identity Digital and member of ICANN’s Security and Stability Advisory Committee, while warning against ICANN taking a reflexively us-versus-them stance on new naming systems, wondered whether phrases such as “domain name” and “TLD” are “terms of art” that should be only used to refer to names that use the consensus ICANN-overseen DNS.

We ought to have a conversation about “What is a TLD”? Is a TLD something that is in the IANA root? Is a domain name an identifier that is a part of that root system? i think we ought to have that conversation because the place where I worry about is you have other technologies in other areas that come and appropriate the syntax, the nomenclature, the context that all of us have worked very hard to build credibility in… What happens if that terminology gets taken over, diluted, and there are failures in that system? … The end user doesn’t really care whether [a domain] is part of the DNS or not part of the DNS, they just say “My domain name stopped working”, when it may not actually be a quote-unquote “domain name”.

Food for thought.

4 Comments Tagged: blockchain, collisions, crypto, ens, ethereum, ethereum name service, fragmentation, ICANN, icann 75, kuala lumpur

ICANN to “stand up” to Russia at the ITU

ICANN is a non-political organization, but it cannot tolerate the platform of the Russian standing to be the secretary-general of the International Telecommunications Union.

CEO Göran Marby took a fairly bellicose tone in denouncing the platform at two sessions of ICANN 75 in Kuala Lumpur yesterday, warning that the election of Russian nominee Rashid Ismailov could not only destroy ICANN’s multistakeholder model but also internet interoperability in general.

Russia is pushing a position under which the powers of organizations such as ICANN, the Regional Internet Registries and standards-setting groups would be consumed by the ITU and managed in an multilateral, rather than multistakeholder, fashion.

Marby was asked a question about the election, due to take place at the ITU Plenipotentiary Conference in Bucharest starting next week, during an open-mic Q&A with the community yesterday.

“We are not campaigning against, but we are reflecting on the fact that one of the candidates does not like what you do here, your ability to walk up to the microphone and ask that question. You can’t do that in the UN setting,” he said.

“There’s a really really big risk that we will lose that ability for you,” he said, adding that he is concerned “that people around the world might not be able to connect to one single interoperable internet”.

“We are strictly neutral when it comes to who becomes the Secretary General,” he said. “We vividly oppose one of the platforms, that the Russian potential Secretary General stands for.”

“We are not a political organization, but we stand up one time… when we see proposals that would disconnect people from the internet or actually make it impossible for you to be here and make policies, that is when we go out and react. That’s the only time,” he said.

During remarks earlier in the day at the ICANN 75 opening ceremony, Marby addressed the same topic in slightly more evocative terms.

“What we do is like fighting for peace. You don’t fight for peace when war has broken out, you fight for peace before. We have to continue to work for the multistakeholder model now before it’s challenged too much,” he said.

Was this a deliberate allusion to the Russian invasion of Ukraine? Marby and/or his speechwriter can’t have been blind to the connotations.

Ismailov’s opponent in the election is Doreen Bogdan-Martin, an American with a much more acceptable policy platform.

ICANN earlier in the year published a paper (pdf) analyzing Russia’s stance on global internet policy. Marby’s remarks this week echo a warning he gave a year ago at ICANN 72.

In an explicit response to the opening ceremony remarks, on Tuesday Russia’s representative on the Governmental Advisory Committee offered a passionate defense of the Russian candidate, telling the GAC and ICANN’s board that his platform is about the “harmonization of ICT”.

He said that the role of the ITU secretary general is a neutral one, and not representative of any particular state.

During the same session Ukraine pleaded for more support, specifically in the form of satellite internet terminals, following ICANN’s donation of $1 million to support infrastructure projects in the war zone.

A million people are without internet access, he said, and rebuilding fiber networks destroyed by Russian missiles will take months because the fields are often mined.

Comment Tagged: ICANN, icann 75, interoperability, itu, russia

Surprise new chair for ICANN announced

The King is dead, long live the Queen!

(Too soon?)

ICANN announced today that Tripti Sinha will be taking over as chair of the organization’s board of directors this Thursday, with Maarten Botterman taking an unexpectedly early bath.

The news was delivered by Botterman this morning during the opening ceremony of ICANN 75, being held in Kuala Lumpur, Malaysia this week. He added that Danko Jevtovic will take over from Leon Sanchez as vice-chair.

No reason for the decision, which appears to have been made at a board meeting yesterday, was given.

While Botterman’s second term on the board ends this week, he was only recently reselected by the Nominating Committee for a third and final three-year term, a term he appears to be intent on serving as a regular director.

Sinha becomes ICANN’s seventh chair since its inception, and the third (after Vint Cerf and Steve Crocker) to come very much from a technology rather than legal or policy-making background.

She’s currently CTO at the University of Maryland, where among other things she oversees the university’s operation of D-root, one of the internet’s 13 DNS root servers.

On the ICANN board, she already sits on five committees and chairs the Board Governance Committee.

She was born in India, but seems to have lived in the US for most of her adult life. It’s not clear whether she’s in the North America or Asia-Pacific column for purposes of geographic diversity under ICANN bylaws.

Jevtovic comes from the ccTLD world in Serbia, first with Yugoslavia’s .yu and then with Serbia’s current .rs domain.

Sinha’s new role comes with a salary bump from $45,000 to $75,000 and, one presumes, much more stress.

Both Sinha and Jevtovic are NomCom appointees with two years left on their second terms.

Comment Tagged: ICANN, icann 75

PIR will launch .giving next month with unusual landrush rules

Public Interest Registry has revealed the launch dates for its recently acquired gTLD .giving, and it seems the former registry will also play a prominent role.

PIR has told ICANN it will run .giving’s sunrise period from October 13 to December 13. It’s an “end date” sunrise, where domains are only allocated at the end of the period, but the criteria for resolving competing claims is first-come-first-served.

The landrush period will run from December 20 to January 20, but there’s an unusual twist requiring registrants to buy, or at least “evaluate”, an e-commerce service:

As a condition to registering a domain name in the .GIVING during Landrush (December 20, 2022 through January 20, 2023), you agree that by registering your domain name, you represent and warrant that: (a) you currently use one of Blackbaud’s digital giving solutions or will evaluate the free Giving Checkout solution offered by JustGiving from Blackbaud available at this link and (b) you acknowledge and agree that the Registry or the registrar can cancel the registration of the domain name if your warranty is found to be untrue, incomplete, incorrect, or misleading.

Blackbaud is the company that operates JustGiving, a fund-raising web site chiefly popular in the UK. It was also the original registry for .giving, although of course it never actually launched the TLD.

PIR says general availability will begin January 20. It appears there will be six premium-price tiers, but renewals will be at the regular fee.

Comment Tagged: .giving, blackbaud, justgiving, pir

Last-minute bombshell in Nominet election — it may be ILLEGAL

Nominet’s current non-executive director election may be illegal, according to a legal opinion commissioned by one of the candidates.

Candidate Jim Davies, along with fellow former director Angus Hanton, say barrister Iain Mitchell KC has said that elements of Nominet’s voting practices are “clearly unlawful”, and they’ve asked Nominet to scrap them.

If Nominet accepts the opinion, it could mean the election — which is going on right now — could become a one-member-one-vote affair rather than the current system where you get more votes based on how many .uk domains you manage.

Davies and the other signatories to a letter sent to Nominet believe the company’s extremely complex “weighted voting” system is illegal under the UK’s Companies Act. They write:

This is a very serious issue for Nominet, particularly as there is an AGM and Board Election happening soon. Based on counsel’s opinion, we believe the only lawful way to conduct that meeting (and future meetings) would be one member, one vote.

Should Nominet agree and change the system, it would mean that big registrars such as GoDaddy and Tucows would get the same number of votes — one — as individual Nominet members.

This would most likely advantage IP lawyer Davies and fellow candidate Kieren McCarthy, who is a reporter rather than a registrar, at the expense of third candidate Volker Greimann, who works for Key-Systems, the large registrar owned by CentralNic.

Davies, in echoes of the PublicBenefit.uk campaign that led to a boardroom bloodbath last year, has set up a web site at WeightedVoting.uk to encourage fellow members to read the opinion and sign the letter.

While confidence in the company has arguably improved under its new leadership, member hackles were raised recently with the admission that Nominet had spunked millions of dollars on a failed attempt to enter the security market.

Voting in the NED elections began on Monday and runs until the end of the month. The results will be announced October 5, the day before Nominet’s AGM.

UPDATE: A Nominet spokesperson reached out with the following statement:

We acknowledge the receipt of a legal opinion commissioned by one of our members. We believe that our long-standing election process and voting rights are lawful and are being applied in accordance with our founding documents. We believe they have served and continue to serve both Nominet and its members well. Therefore, the election and voting will continue as planned. We will consult with our legal advisers prior to responding to our member.

4 Comments Tagged: .uk, elections, nominet, publicbenefit.uk, weightedvoting.uk

ICANN finished year $24 million ahead but loses $29 million on the markets

ICANN came out of fiscal 2022 $24 million ahead of its budget due to lower travel expenses and greater domain sales than expected, but blew $29 million on poor investments, according to financial results published today.

The Org ended June having received $150 million, mostly from registries and registrars, which was $5 million more than it had budgeted for.

Fixed, variable and transaction-based fees accounted for most of the difference. Registrars sold more domains than ICANN predicted, and fewer registries and registrars cancelled their contracts.

Verisign of course was the biggest contributor, accounting for over a third of revenue — $49 million for .com/.net fees alone. On the registrar side, GoDaddy contributed over $11.2 million.

GoDaddy’s contribution is actually a little higher than all the 131 participating ccTLDs’ voluntary donations combined, which came in at $11 million.

Expenses were $125 million, against a budget of $143 million. That was mostly due to the fact that two of its three meetings were held entirely online, so ICANN didn’t have to pay its staff and volunteers’ travel expenses.

It spent $3 million on meetings in the year, against a $10 million budget.

When the budget was passed in May 2021, ICANN had expected all three meetings to take place in person, with international travel “unrestricted” despite the pandemic.

Expenses were also affected by a lower-than-expected headcount. Average headcount was down by three on FY21 at 389, compared to the 405 predicted by the budget.

Despite the over-performance at the operating level, ICANN’s balance sheet actually declined compared to a year earlier.

It had funds under management of $505.5 million compared to $520 million, having lost $29 million due to “investment declines in the Reserve Fund due to volatility in the financial markets”. Its portfolio is still $9 million ahead compared to five years ago, however.

1 Comment Tagged: budget, earnings, financials, ICANN

CentralNic picks up marketing firm for up to $19 million

CentralNic has made yet another acquisition, this time of a young Israeli online marketing company in a deal worth up to $19 million.

The company said it is buying M.A Aporia Ltd for $11.2 million, with the possibility of up to an extra $7.8 million in performance-related payouts by 2024.

Aporia provides services that research audiences and target advertising. CentralNic said it had revenue of $35 million last year, along with gross profit of $3.5 million and EBITDA of $2 million.

But CentralNic said the company is an exclusive supplier and therefore won’t increase its top line in the short term. Instead, it will improve margins and earnings by cutting out a middleman from the online marketing business.

CEO Ben Crawford described the move as “disintermediating the value chain… removing transaction costs and friction losses”.

Comment Tagged: acquisition, aporia, centralnic

Whois Disclosure System to cost up to $3.3 million, run for one year

ICANN has published its game plan for rolling out a Whois Disclosure System ahead of next week’s ICANN 75 public meeting in Kuala Lumpur.

The Org reckons the system will take nine months to build and will cost up to $3.3 million to develop and run for two years, although it might wind up getting shut down after just one year.

The Whois Disclosure System, previously known as SSAD Light, is a mechanism whereby anyone with an ICANN account — probably mainly IP lawyers in practice — can request unredacted private Whois data from registrars.

The system is to be built using retooled software from the current Centralized Zone Data Service, which acts as a hub for researchers who want to request zone files from gTLD registry operators.

ICANN’s design paper (pdf), which contains many mock-ups of the likely user interface, describes the new system like this:

Just as in CZDS, a requestor navigates to the WHOIS Disclosure System web page, logs into their ICANN Account, and is presented with a user experience much like the current CZDS. In this experience, requestors can see pending and past requests as well as metadata (timestamps, status, etc.) associated with those requests. For a requestor’s pending requests, they can see all the information related to that request.

Requests filed with the system will be routed to the relevant registrar via the Naming Services Portal, whereupon the registrar can choose how to deal with it. The system doesn’t change the fact that registrars have this discretion.

But the system will be voluntary for not only the requesters — who can still contact the registrar directly if they wish — but also the registrars. One can imagine smaller and frequently abused registrars won’t want the hassle.

The cost of this system will be $2.7 million in staffing costs, with $90,000 in external licensing costs and another $500,000 in contingency costs. Because ICANN has not budgeted for this, it will come from the Supplemental Fund for Implementation of Community Recommendations, which I believe currently has about $20 million in it.

This is far and away cheaper than the full-fat SSAD originally proposed by the GNSO, which ICANN in January estimated could cost up to $27 million to build over five years.

While cheaper, there are still substantial questions remaining about whether it will be popularly used, and whether it will be useful in getting private Whois data into the hands of the people who say they need it.

ICANN is saying that the Whois Disclosure System will run for one year “at which point the data sets collected will be analyzed and presented for further discussion between the GNSO Council and Board”.

The design paper will be discussed at multiple ICANN 75 sessions, starting this weekend.

3 Comments Tagged: gdpr, ICANN, icann 75, privacy, ssad, ssad light, whois, whois disclosure system

ICANN director’s registry CEO job up for grabs

DotAsia is looking for a new CEO after 15 years of operation, DI understands.

Edmon Chung has been made Acting CEO and the board of the registry will start looking for a replacement by October 7, according to a source.

I’m told the board passed a resolution last week stating: “In pursuit of the fundamentals of transparency, accountability and fair competition, and in the DotAsia community best interests, the CEO contract should be put for open tender”.

Chung, who joined ICANN’s board of directors a year ago, will not be barred from reapplying for his job.

DotAsia, which of course runs .asia, was one of the successful registries in ICANN’s 2003 “sponsored” gTLD round.

The TLD launched in 2017 and currently has around 200,000 domains under management.

The DotAsia Organization in a non-profit entity with a complicated organizational structure involving several Asian ccTLDs.

1 Comment Tagged: dotasia, ICANN