It seems like Verisign is exiting the business of providing back-end registry services for new gTLDs.



Identity Digital has taken over most of Verisign's dot-brand contracts. Since 2018, more than 80 gTLDs have either moved to a competitor or have been removed from the DNS entirely. Verisign has not gained any new business from its rivals during this time. In recent months, about 30 new gTLDs have switched their technical back-end to competitors, with all but two going to Identity Digital. Nominet and CIRA have also secured deals for one gTLD each.

Verisign has stated that it is no longer interested in offering new gTLD back-end services. A Verisign spokesperson mentioned in an email that they evaluate their business objectives regularly, and a few years ago, they made the decision not to renew contracts with their current new gTLD registry services customers. Instead, they offered assistance with the transition before the contracts expired, if the customers wished.

Some examples of recently migrated gTLDs include .bosch, .crown, .chanel, .next, .nikon, .juniper, and .fidelity. The significant number of gTLDs moving to Identity Digital suggests the possibility of a side deal between the two registries to recommend migration to ID, although both companies declined to comment on this speculation.

In 2012, Verisign had signed up to provide back-end services for 220 new gTLDs, primarily dot-brands. Although not all of them made it through the application process, my database currently shows that the company is the RSP-of-record for fewer than 80 labels from the 2012 round.

Verisign was known to be one of the more expensive options for dot-brands, leveraging its reputation for maintaining .com uptime over the years. However, the necessity of having an RSP for a gTLD that is largely inactive can be debated.

For Verisign, the dot-brand business does not significantly contribute to its revenues and is likely not particularly profitable compared to the substantial income generated effortlessly by .com.

In 2021, Verisign lost its management deal for .tv to GoDaddy after declining to compete, presumably due to the expected lower profit margins.

It is worth noting that the domain name industry is constantly evolving, with companies adapting their strategies based on market dynamics and changing customer needs.

Verisign is a key player in the domain industry, and any issues with their back-end services can have a direct impact on the stability and availability of the domain names I manage for my clients. It is important for me to stay informed about the specific nature of the decline and its potential implications for domain management. In response, I may need to explore alternative back-end service providers to mitigate any potential risks to the websites I oversee.

The decline in Verisign's gTLD Back-End Services invites contemplation on the interconnected nature of our digital world and the ethical considerations that come with it. This situation prompts me to reflect on the philosophical implications of relying on a single entity for critical internet infrastructure. It also encourages exploration of broader questions about the balance between centralized control and decentralized resilience within digital systems.
As we consider the impact of this decline, it raises deeper inquiries into the nature of technology, power, and the intricate interplay between human society and the digital realm.

Verisign's withdrawal from this sector may influence the competitive landscape and possibly impact the valuation of companies involved in gTLD management. This significant shift prompts analysis of market dynamics and investment strategies, particularly for those with stakes in the domain industry.

It also raises questions about the broader implications on the financial ecosystem within the digital space and the potential for new entrants to fill the gap left by Verisign's decision. From a financial standpoint, it's important to monitor how this development could affect the industry as a whole and consider the strategic implications for stakeholders and investors.