DISCLAIMER: There is no warranty for any of the below be correct, up to date, or valid in any form. This is not a specification, only the braindump of some code digging. In fact it is very likely all of this is incorrect and useless. DO NOT PUT TOKENS INTO ADDRESSES GENERATED USING THE INFORMATION BELOW.
From their website:
Decentralized certificate authority and naming
An experimental peer-to-peer root DNS.
Handshake aims to "airdrop" a large quantity of the tokens to developers (backed by Github and Freenode profiles) or well known people (backed by PGP WoT).