Does Nostr fix centralized domain name registration?

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Yes - if you exclude NIP5 and use IP addresss to designate relays. Reticulum fixes IP reliance, but yet to be implemented by any clients.

Could be, but then each relay would be a kind of tld or how would ypu coordinate between relay? This might better be on the Bitcoin blockchain, similar to ENS on ethereum but then each registery, redirect, A CNAME... will be an on chain transaction, so decentralized name for rich only.