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It is situational, but it very much seems like a thing you'd squirrel away and bring out when you find a system where the differential is helpful.

DNS names are a thing where Sales is going to tell the Engineer that they can't issue the customers randomized ASCII names like abxuewrf.my-thing.example because real customers want to write our-brand-name.my-thing.example instead - even though you already know bad guys will choose billing.my-thing.example and name-of-bank.my-thing.example and every other unintended bad choice even before we realise about likelihood of these confusion bugs in software like Python.

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That's why for that type of 'semi-white-label' thing, since the main risk is one of impersonating the platform owner (like the billing.my-thing.example) or possibly lending the credibility of "our" brand to some rando UGC, I always push for the most boring and generic second-level domain, like if it's the travel business, 'travel-systems dot us' or in edtech, mylearningplatform dot net... Then push all customers who know what they're doing into 'BYO DNS name' anyway.

I also like how sites like github use githubusercontent.com or something like that when linking to UGC assets directly, to avoid someone direct linking to something with the implication that it's coming from GitHub.

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That's actually to prevent cookie stealing.
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It's mostly about not sharing a security context with github.com.
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Yes, but github.cc or whatever would have sufficed for that; there's a reason the string they chose to register for prominent public use contains “usercontent”
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literally github.io though
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Solution: customer emails you to request a name
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I can see how this would be a vulnerability in the context of a security researcher that wants to exaggerate their findings in order to get paid a bounty.
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