Internationalized domain name makes it possible for person or organization to register a domain name that include non alphanumeric characters to its domain name. This is useful mostly for countries that use German, Japanese, or Arabic.
An example for this is a website of Jebu Island (제부도.com). If you click the link, it will take you to http://xn--hq1bp8p1yi.com/.
While using international characters may work for some, that doesn’t really mean your website will be uniquely identified. It may only help people using those characters to find your website.
A creative way to exploit this internationalized domain name is by using symbols on your domain name. An example for this is what Daring Fireball does for its shortened URLs. The website used http://✪df.ws/ for that purpose and on twitter it’s pretty catchy.
One thing to remember though, don’t use symbols on domain name to make your users find you easier. In fact, it is very hard to type symbols using normal keyboard. Like Daring Fireball, use it somewhere to make the domain names catchy and outstanding.
So the question is now, how to create such domain name? First of course, you need to decide what the name of the website should be. For this you will need a list of supported symbols. You can find that in this page under Script: COMMON.
After that, find out what is the real domain name by entering the name in Punycode Converter. For example I enter ⋄1k.ws and as the result get xn--1k-5qv.ws.
If you’ve got the encoded domain name, you can try to register the domain name to a registrar. I found that domain .ws is the most unrestrictive top level domain that will allow you to use all the symbols on the previous page. The other top level domain like .com, .org, and .net are pretty strict and don’t allow symbols (and only internationalized characters) on the domain name.
So, good luck for your next unique domain name!