Recently, much effort has gone into making domain names available in character sets other than ASCII, making the Internet more accessible while preserving a naming system that is globally unique and resolvable. Existing country code domains are going to continue to function as usual with new IDN country codes extensions created. Existing and new generic TLDs (such as .com or .xyz) are also accept non-Latin characters in the domain name.
There are two types of IDN domains: partial (IDN.xx) or full (IDN.IDN). A partial IDN has the extension still in Latin-based characters, while full IDNs are completely represented in that language's native character set. IDN.xx domains are already being offered through many gTLD and ccTLD providers as domains where the native language is displayed for the domain and not the extension. Partial IDN TLDs will lose their effectiveness if the SLD (domain) and the TLD (extension) are in different character sets (such as 101Домен.com) requiring the client to change their keyboard settings to type in the full domain name.
More effective is the full IDN which will have the SLD and TLD in the same character set allowing the client to type the full domain name without the keyboard setting being changed. For example, in Cyrillic, 101domain.rf would be 101Домен.РФ.
While full IDNs can be represented in the native character Unicode, the domain name system only functions with ASCII characters and would not recognize non-English letters and numbers with no accents. The way around this problem is to encode Unicode characters into Punycode, which is an ASCII representation of the Unicode characters. The marker "xn--" indicates that the domain is an IDN. As far as the DNS itself is concerned, the domain name for 101Домен.com is xn--101-pddf5bif.com or शाला.कॉम is xn--v2bhyb.xn--11b4c3d.
Many countries have started registrations for IDN.IDN domains. Until these extensions are approved by ICANN and added to the root routers, they cannot be used globally. Pre-orders are already being offered through 101domain.com. Demand is greatest for Arabic, Chinese, Cyrillic, India, and Latin language domains, with more than half of internet users now using non-Latin scripts.