Namecoin, abbreviated NMC is an alternative distributed Domain Name System (DNS) on the basis of Bitcoin software. It expands the software so that transactions for registering, updating, and transferring domains to serve.
Like Bitcoin, Namecoin is a peer-to-peer system, which, assuming an honest majority of participants can not be controlled by a single state or a company. Changes to the namespace of the rightful owner of a domain with a public key signature method and distributed to all peer-to-peer users. The inclusion in the block chain , as the eternal logfile is used, the transactions are authentic. The block chain grows whenever new transactions, if any of the participants through a fairly intense proof-of-work process, a matching result of a cryptographic hash function has found what may be verified by all other participants. The falsification of a longer chain block is, due to the computational effort, impractical.
Currently, the top-level domain .bit used in the official domain name system is not awarded. To resolve domain name you need either the current block chain or use a public name server that participates in the Namecoin system. Namecoin uses a separate block of Bitcoin chain. The software is open source and is hosted on GitHub.
- 50 Coin reward per block
- 21 million coins will be available
- Block target is 10 minutes so a new block is generated every 10 minutes on average
- Difficulty adjusts every 2016 blocks, approximately every 14 days
- Hashing protocol is SHA-256
- Launch Date: April 18th, 2011
Namecoin is not directly mined solo but usually merge-mined with bitcoin and devcoin. Most mining pools merge mine these cryptocurrencies as it allows for a little extra profit. Currently 3-5% extra compared to only mining Bitcoin.
At this moment it can be traded at the following exchanges:
The namecoin Client can be found here http://www.namecoin.org/
Here’s a video explaining Namecoin: