This all sounds great, but how does domain name registration work? Technically it’s very simple, it’s just an instruction that needs to be signed by the root TLD (Top Level Domain) authority which only costs a gas fee. But how do we make the distribution fair? If the registration process cost is just gas fees, each .sol domain will be worth less than 0.1 USD (at the time of writing). And this would be the only cost of registering a domain name for life. This is awesome because it makes domain registration really cheap and affordable, but also creates significant concern about the initial registration. Anyone could come and claim an enormous amount of domain names and then try to resell them. This wouldn’t be fair. In order to solve this problem we decided to take a market driven approach and use an auction system.