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diff --git a/README.md b/README.md
index a5c1760..b21ad2c 100644
--- a/README.md
+++ b/README.md
@@ -54,6 +54,7 @@ This project is licensed under GNU Free Documentation License v1.3, see the [LIC
* [Specifications](#specifications)
* [UUID v4](#uuid-v4)
* [DNS Handshake](#dns-handshake)
+ * [Peer Address](#peer-address)
* [RPC Communication](#rpc-communication)
* [Notification & Request-Response Communication](#notification--request-response-communication)
* [Request Object](#request-object)
@@ -106,6 +107,29 @@ retrieve the TXT record, which then provides the URL of the Socialbox server.The
connection to the Socialbox server. This process allows the client to dynamically discover the server URL.
+## Peer Address
+
+A peer address uniquely identifies a peer associated with a Socialbox instance, resembling a traditional email address
+format, where a username and domain are separated by an @ symbol. Both the username and domain are case-insensitive,
+and the domain must be a valid domain name. A typical peer address looks like this:
+
+```text
+john@example.com
+```
+
+If a Socialbox instance is hosted on a subdomain, such as socialbox.example.com, the peer address format does not change
+and remains tied to the main domain. For example, if example.com is the main domain, a DNS TXT record should be added to
+the main domain's DNS settings in the following format:
+
+```text
+example.com. IN TXT "socialbox=socialbox.example.com"
+```
+
+This record indicates that the Socialbox instance is hosted on the subdomain socialbox.example.com, while the peer
+address stays consistent as john@example.com. This is because clients always resolve the main domain to find the TXT
+record, which provides the URL of the Socialbox instance.
+
+
## RPC Communication
Socialbox employs JSON-RPC over HTTP for server-client & server-server communication. JSON-RPC is a stateless,