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 eranet.com is xn--fiq228c.com.

The biggest technical challenge involves changing all the application software to support IDNs, because IDNs are converted to Punycode in the application and not the DNS system. Internationalized Domain Names were designed to be backwards compatible, as they convert Unicode characters to ASCII characters, so it would not require a wholesale change to the DNS system. They reduced the technical challenge by assigning the support of IDNs from the DNS system level to the application level.

It is up to the application, like the web browser, to convert the Unicode characters into the Punycode representation. There are no changes to the DNS system as the responsibility for encoding IDNs is delegated to the application. The application is what displays the domain as the non-English characters.