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I tried skimming the docs, but couldn’t find how domain verification works on Nostr. Does a verified domain work as your handle or only as a verified domain?

That’s my favorite feature in Bluesky. I don’t need to worry about a handle since I can just use my domain.

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Domain verification is NIP05, here is a tutorial: https://nostr.how/en/guides/get-verified

Basically create json file on your site at /.well-known/nostr.json

Place inside your username and the npub, done.

So instead of just using a domain TXT record you're required to host a page and provide access to this file? Seems worse than how AtProto handle's this.

That is a wrong assumption.

First: You can easily host a million user handles on a JSON file without impact on the website, you cannot host a million user handles as TXT record.

Second: It is far easier to update a JSON file on disk than using an API to a specific domain registrar provider and change TXT records there.

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