Namecoin is a cryptocurrency or a digital currency based on the same code and algorithm as the Bitcoin. The two digital coins are almost similar. Namecoin is an innovative open-source technology which develops decentralization, safety, censorship resistance, secrecy, and the speed of individual components of the Internet infrastructure such as DNS (Domain Name System) and identities.
Namecoin was the first fork of Bitcoin and is still one the most popular “altcoins.” It was the first to execute mixed mining and a decentralized DNS. It was also the very first answer to Zooko’s Triangle, the greatest problem of creating a naming practice that is concurrently reliable, decentralized, and human-meaningful.
What are the benefits of decentralization?
A decentralized DNS system indicates that TLDs which are not held by anyone can survive, and same system partition the DNS lookup tables. As long as there is a full-proof system running the customized DNS server software, we can safely enter any alternative domains.
What are the uses of Namecoin?
There are several applications of Namecoin on the web. It can be used for the following:
1. Decentralized TLS (HTTPS) authentication validation, supported by blockchain consensus.
2. Browse websites using the .bit top-level domain.
3. Preserve free-speech rights online by causing the web to be more immune to censorship.
4. Connect identity data such as GPG and OTR keys and email, Bitcoin, and Bitmessage locations to a name of your preference.
5. Suggest plans such as voting, file suggestions, bonds/stocks/shares, a web of trust, notary duties, and proof of being.
How does Namecoin operate?
The Namecoin software is utilized to store correlated values in the blockchain, a divided database distributed by a P2P network in a safe way and display names. The software can then be used to question the database and recover data.
Can Bitcoin and Namecoin supplement each other?
Even though the two cryptocurrencies do not associate, the same set of mathematical algorithms forms the basis of their existence. Hence, the same hardware is used to mine Namecoins as well as Bitcoins. Moreover, there is a method known as merged mining, in which a mining device is configured to query both blockchains as and when it comes up with a workable solution for the cryptographic problems.
What are the differences between Bitcoin and Namecoin?
If there similarities between Bitcoin and Namecoin, there are differences too. Let’s learn more about them;
1. Bitcoin was launched by Satoshi Nakamoto on 3rd January 2009, whereas Namecoin was created from modified Bitcoin software, and hence is similar to it.
2. The unit of Bitcoin is BTC or XBT, whereas the unit of Namecoin is NMC.
3. The overall market capital of Bitcoin was $ 10,242,178,515 (as per February 2014 report), whereas the overall market capital of Namecoin was $ 41,769,523.
4. Total number of mined Bitcoins were 12,356,350 BTC (as per February 2014 report), whereas the total number of mined Namecoins were 7,952,092 NMC.
