I've been using unbound as my only DNS server for over a year now. It's a recursive and caching DNS server with DNSSEC (a.o.) support.
This is particularly interesting for people living in China: the GFW's first line of defense (if you can call it that) is spoofing DNS. If you use the DNS server provided by any of the Chinese ISPs, you're unlikely to get any meaningful IP for domain such as facebook or twitter. But if you go through the whole recursive query yourself (ie. ask the root-servers for "com", ask the .com servers for "facebook" and ask the facebook servers for "www") then you will get an IP, which you can potentially verify using DNSSEC. Because facebook and others constantly add new servers to their datacenters, with new IPs, it's likely that once you get the right IP, you can actually connect to the server, without the need for VPN.
Unbound is easy to setup. For me, "opkg install unbound" was half the battle. The other half involved editing /etc/unbound/unbound.conf. For a detailed walk through, check this great site [calomel.org]. Here's my current unbound.conf:
All this was working fine, but the problem was that local names in my LAN no longer got resolved. Unbound doesn't no anything about DHCP and it won't accept DNS registrations from local machines. Dnsmasq does know about local names, since it's the one handing out the IPs in the first place. Ideally, I use both DNS servers: unbound for external queries and dnsmasq for internal (and internal only!) queries.
Most of the time I query external names, so I'd tried to get Unbound to forward local queries to Dnsmasq. I configured Unbound to use port 53 and Dnsmasq to use port 533. Then, I added a forward-zone to unbound.conf:
This was supposed to forward all queries in the "lan" domain (the local domain, as configured in dnsmasq/dhcp) to the dnsmasq server listening on port 533. Unfortunately, this didn't work. No queries got forwarded, even though a lookup for a local name did get suffixed with ".lan" by the clients.
So I flipped it around: dnsmasq on port 53, unbound on 533. Add the following to /etc/config/dhcp: