The idea of Namecoin was initially discussed on a Bitcointalk forum back in September 2010. Soon after, with the support of Satoshi Nakamoto and Gavin Andresen, Namecoin was launched on 18 April 2011.
Namecoin has two purposes. The first being its capacity to “protect free speech rights online by making the web more resistant to censorship.” Clearly, censorship was already a pressing matter back in 2010. Namecoin was created with the intention of offering censorship-proof domain name registering services.
Governments and other authorities would not be able to control these decentralized DNS systems.
Domain naming system (DNS) link domain identities to numerical IP addresses. You may have noticed your bank asks for additional verification when you log onto your internet banking profile from a new device. This is because the system recognises your device’s IP address.
In this regard, Namecoin aims to enhance user security and privacy when using the internet.
The second function of Namecoin is that it can be used for peer-to-peer transactions. Furthermore, Namecoin mining can be merged-mined with Bitcoin. Did you know that Namecoin does not have a whitepaper and is not backed by an organisation?
Namecoin vs BitcoinSince Namecoin was the first fork of Bitcoin, they share a lot of similarities. Both have a total of 21 million coins and utilizes the same proof-of-work algorithm for mining procedures. The reason behind this development is so that miners are encouraged to mine both Bitcoin and Namecoin at once.
Namecoin differs from Bitcoin in the sense that it can store data within the blockchain transaction database. This is possible because the coin’s protocol is linked with the top-level domain .bit.
Namecoin launched NameID in June 2013. NameID links one’s profile information with identities on the Namecoin blockchain. Shortly after, NameID plug-ins became popular on Firefox and other web browsers.
Until today, many supports believe Namecoin is crucial for internet privacy and censorship reduction over the long-term. The coin is known for being one of the earliest ventures that unlocked the many possibilities that the altcoin market holds.