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We've seen how the DNS name space hierarchy allows us to arrange domains into a virtual tree that reflects the characteristics of how the devices themselves are organized. While using a hierarchical name space is inherently more complex than a flat name space, it yields a powerful result: the ability to specify names that can be locally managed while remaining globally unique. At the same time, the complexity of the tree yields the benefit of relatively simple name construction using domain identifiers.
Naming in DNS begins with giving each domain, or node, in the DNS name space a text label. The label identifies the domain within the structure, and must follow these syntax rules:
Every label must be unique within its parent domain. So, for example, if we have a top-level domain (TLD) called rocks, we can only have one subdomain within rocks called crystal. Due to the case insensitivity of labels, we cannot have both CRYSTAL and crystal within rocks, because they are considered the same.
It is this concept of local uniqueness within a parent domain that ensures the uniqueness of names as a whole, while allowing local control over naming. Whoever is in charge of the rocks domain can assign names to as many individual objects or subdomains as he likes as long as they are unique within the domain. Someone else, say, the maintainer of the glass domain, can also create a subdomain called crystal within glass; there is no conflict because the glass and rocks domains are separate. Of course, since all top-level domains have the same parent (the root), all TLDs must be unique.
Key Concept: Each node in the DNS name space is identified by a label. Each label must be unique within a parent domain, but need not be unique across domains. This enables each domain to have local control over the names of subdomains without causing any conflict in the full domain names created on a global level.