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Namecoin is a peer-to-peer system that is completely decentralized and based on the Bitcoin code. The company wants to eliminate the centralized control and management of domain names to enable a decentralized and censorship-free Internet of the future.
Namecoin - Company History and Backgrounds
The crypto currency was one of the first branches of Bitcoin. The idea behind Namecoin was first discussed in the BitcoinTalk forums in 2010. Satoshi Nakamoto also participated in this discussion. He supported the idea.
The first product finally appeared in 2013. The project was also the very first answer to the problem of Zooko's triangle. This is the problem of a naming practice that has to be secure, decentralized and meaningful at the same time. But only two of these three points can be fulfilled at the same time.
The team consists of a group of international academics and volunteers working on the development of the software. Namecoin's creator, according to the company's website, is Vincent Durham, who is now retired. The total number of people working on the development is not shown on the website.
Namecoin Decentralizes DNS System
A decentralized DNS system means that TLDs can exist that do not actually belong to anyone. The DNS lookup tables are shared on a peer-to-peer system and are accessible to all.
As long as volunteers run the customized DNS server software for everyone else, users can always access the alternative domains. The physical servers cannot be captured, so authorities do not set rules that could affect the operation of a peer-to-peer domain.
The company has developed software to do this. It is used to register names and store associated values in the blockchain that is securely distributed by a P2P network. The software can also be used to query the database and retrieve data.
So what can Namecoin's system do?
- Protect freedom of speech on the Internet by making the Internet more resistant to censorship.
- Information such as GPG and OTR keys, e-mail, Bitcoin and Bitmessage addresses can be uniquely appended to a selected identity.
- Decentralized TLS (HTTPS) certificate validation, supported by blockchain consensus
- Secure capture and transfer of any name and key
- Values or data of up to 520 bytes can be added to the names.
Namecoin in the application
The company has its own crypto currency of the same name, abbreviated to NMC. This is required for various activities and applications. For example, if you want to register a domain name, you have to pay a certain amount in Namecoins. This process is divided into three steps and executed via the Namecoin software:
- Pre-ordering a domain name. Cost: 0.01 NMC plus 0.005 NMC transaction fee. At this point, however, the user is not yet the owner of the name.
- Complete the registration. A further transaction fee of 0.005 NMC must be paid.
- The domain is now made public and passes into the possession of the user for a period of about 200 - 250 days. The exact period should correspond to the dismantling of 36,000 blocks.
- Renew, update or transfer the name. If the user wants to keep the domain or make a change, he has to pay a transaction fee of 0.005 NMC again. The ownership will be extended for another 200 - 250 days (see above).
Buying on Exchange Exchanges
The classic method, as it may be known from many other crypto currencies, is to acquire the coins at a stock exchange. Platforms such as TradeByTrade, WEX, Poloniex or Livecoin are suitable. Here NMC can be traded both in exchange for BTC or USD.
Obtaining Coins through Mining
In the case of Namecoin, mines can be a good alternative for obtaining coins. Since the crypto currency is a fork from Bitcoin, both are based on the same mathematical algorithm, the SHA-256. NMC can thus be mined in merged or fused mining.
This expression means that several crypto currencies can be mined in parallel. The crypto currency with the lower hash value benefits and can increase the hashing power behind its network by bootstrapping to more popular crypto currencies, in this case Bitcoin. Some pool vendors, such as BTC.com, allow this combined reduction.
Conclusion
With its open source technology, the company wants to drive decentralization in order to create higher security, censorship resistance, data protection and speed of certain components of the Internet infrastructure such as DNS and identities. Link: Current NMC Course