DNS is generally restricted to a subset of the ASCII character set. While this isn't a strict limitation of DNS, there are enough DNS servers, clients, and applications using DNS that break on non-ASCII sequences that it's a de-facto standard.
In place of storing Unicode inside DNS, Unicode sequences outside RFC 952 (ASCII alphanumerics, case-insensitive, along with '-' and '.' characters) are encoded into RFC 952 compatible hostnames using Punycode, and stored thus in DNS.
Here in HN comments, Unicode is just embedded as actual UTF-8, no strange DNS encoding needed. The hostname, however, is actually xn--gckvb8fzb.com, hence why it's displayed as such.
(your browser will automatically convert from whatever encoding to Punycode where appropriate, so a link like https://xn--gckvb8fzb.com (should) work correctly, but the actual hostname lookup performed on the wire is for xn--gckvb8fzb.com)
Edit: well, HN also converts my Unicode hyperlink into the punycode equivalent. Interesting. It preserves the original encoding when I go back to edit the comment, but displays the Punycode form everywhere else. This gives credence to the idea this is intentional to avoid homoglyph attacks, as csnover states.
In place of storing Unicode inside DNS, Unicode sequences outside RFC 952 (ASCII alphanumerics, case-insensitive, along with '-' and '.' characters) are encoded into RFC 952 compatible hostnames using Punycode, and stored thus in DNS.
Here in HN comments, Unicode is just embedded as actual UTF-8, no strange DNS encoding needed. The hostname, however, is actually xn--gckvb8fzb.com, hence why it's displayed as such.
(your browser will automatically convert from whatever encoding to Punycode where appropriate, so a link like https://xn--gckvb8fzb.com (should) work correctly, but the actual hostname lookup performed on the wire is for xn--gckvb8fzb.com)
Edit: well, HN also converts my Unicode hyperlink into the punycode equivalent. Interesting. It preserves the original encoding when I go back to edit the comment, but displays the Punycode form everywhere else. This gives credence to the idea this is intentional to avoid homoglyph attacks, as csnover states.