Punycode is intended for the encoding of labels in the Internationalized Domain Names in Applications (IDNA) framework, such that these domain names may be represented in the ASCII character set allowed in the Domain Name System of the Internet.
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To make this possible, ICANN approved the Internationalizing Domain Names in Applications (IDNA) system, by which user applications, such as web browsers, map Unicode strings into the valid DNS character set using Punycode.