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Punycode is a way to represent International Domain Names (IDNs) with the limited character set (A-Z, 0-9) supported by the domain name system. For example, "münich" would be encoded as "mnich-kva".
An IDN takes the punycode encoding, and adds a "xn--" in front of it. So "münich.com" would become "xn--mnich-kva.com".
We support many domain extensions that offer IDNs in a variety of languages. To see a list and search for an IDN domain, visit our IDN page.