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Multilingual domains-”MLD”- What figure it creates in your mind.Yeah you are right
Multi language Domains; ie domain names in different language.

The “MLD” Domain name you create will work just like any English-character name in that you can enter it into your browser and be taken to the corresponding Web site. The native language domain name will be followed by .com, .net or .org Example:-

शब्द.com ,समझाना.com–>Hindi language.

موضوع في.com –>Arabic, дневники.com–>Russia,اسم الملف.com–>Persian etc

Theory behind Multilingual domains and security issues

Registration of ASCII-encoded multilingual domain names using the Registry Registrar Protocol (RRP).Multilingual domain names can be registered as second level domains under .com, .net or .org. The multilingual domain names will be stored using Row-based ASCII-Compatible Encoding (referred to as RACE) in the Versing GRS.

*There are many people just beginning to use the Internet, or more likely to use it if there were less of a language barrier. For many of these people, they would prefer the ability to enter a domain name in their native language. Creating a presence by using a domain name in your audience’s native language makes your site easier for them to access and provides a more positive online experience. Also, it may be to your advantage to protect your English-language brand from being registered by someone else in other available languages and character sets

*Initially, WHOIS cannot be searched using non-English characters. The WHOIS database will be updated at a later date to recognize the non-English language characters. Until that time, your name will appear in WHOIS by its RACE-encoded name and you can only search for non-English domain names using RACE encoding language.

*What will people see if they try to visit my Web site using my new name at this time?
Since there is no name resolution yet, if someone tried entering your name in their browser, they would see the 404-error message (the site could not be found). This will happen until the resolution process begins. Don’t be concerned; you are still the legal account holder of the domain name during this period. However, it is important to
understand that multilingual domain names are being registered on a
“test” basis. Circumstances could arise that may affect your multilingual domain name registration

*Is e-mail available using non-English language characters?
No. Under the current system, you will not be able to establish an e-mail account based on non-English language characters. The domain name service is separate from e-mail and unfortunately, the systems that handle e-mail are not able to recognize or support non-English language characters at this time.

Working
I post this when Gaurav told me some more facts about multilingual domains-MLD that are as follows:-

• A Registrar receives an IDN within an ASCII TLD (.com or .net) from the registrant.
• The Registrar prepares the ISO 10646 character sequence as described in the Preparation of Internationalized Host Names Internet Draft5.
• The Registrar transforms the ISO 10646 sequence into an ASCII Puny Code string.
• The Registrar registers the domain
• The Registry converts the Puny code domain to the ISO 10646 character sequence and prepares the sequence
• The Registry transforms the prepared ISO 10646 character sequence into an ASCII Puny code string if it is matches with the original string passed by the Registrar, then the registration is permitted. If the strings do not match, then the domain was not prepared properly and the registration attempt is denied.

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