The approach would be to let server operators use any blockchain naming system they want, be it Handshake, ENS, this SpacesProtocol.org (which anchors names on Bitcoin on chain), the Rootstock .rsk one, Tezos domains, Unstoppable Domains, whatever, doesn't matter, whatever the server op likes the most or doesn't hate the most.
The server op (Nostr relay server, Cashu mint server, Blossom server) adds 2 records to their blockchain domain of choice: the server IP and the TLS fingerprint. The fingerprint can be SHA256 of the Subject Public Key Info of the cert, this is pretty easy to generate from a cert they've just made.
Then you have a resolver that runs in a TEE (could be Intel SGX, AWS Nitro). You can run a light client resolver for whatever blockchain in a TEE, all you need is some early block headers to pre-load and you're good, even if the host/parent goes malicious and feeds in forged block headers in real time the resolver will not validate those, the host/parent would need to be doing the equivalent of a 51% attack to forge the block headers needed to force a false domain resolve. So you can trust that if the TEE said it resolved a blockchain domain then it did.
The TEE would get the IP and the TLS fingerprint for the domain for the client, along with a transparency report (various PCR hashes, timestamp...).
Clients would access the TEE via websocket API gateway. Basically in goes request ("yo TEE, get me hello.joe on Handshake!") and 50 milliseconds later out comes the IP and TLS fingerprint, verifiably resolved. Or faster if from cache. (A DANE cert can work too, but only for Handshake cause it's purpose built and bakes in the DS records and so there you can get DNNSEC without ICANN. With DANE the server op doesn't need to publish the TLS fingerprint on chain, the resolver can just go to the domain and get what it needs to share forward. Anyway a TLS fingerprint is fine too, DANE is kinda overkill.)
Once the client has the IP and TLS fingerprint from the TEE then it connects to the IP and the server presents its TLS. The client has to make sure the TLS matches the fingerprint, which is quick. If it does then the client knows it's connected to the server that the server op intended for the blockchain domain. So WSS/HTTPS basically.
There's other stuff like how to force re-resolve, etc. And you'd need to let Nostr users choose their TEE resolver, same way they choose their Cashu mints or relays. We're about 2/3 of the way to a protocol design for all this, started as a project for something else but the idea could work fine for Nostr too, I'll write it all up when done.
It just comes down to is it really worth it? A user could make their Nostr experience free from ICANN DNS (only add relays mints, etc. that are on blockchain domains) but at the cost of an additional infrastructure layer that needs to be paid for and all the client side implementation to abstract away the TEE.
On the other hand it can be little by little, nothing stopping such a parallel alt root universe from entering nostr one user/relay/client at a time.