Namecoin is one of the earliest altcoins and uses peer-to-peer verification technology. It uses a decentralized DNS for the operation of cryptocurrency mechanism. The Namecoin users, rather than relying on large decentralized look up servers owned by big organizations, can just look up the specially registered domain names on the network. There is no much acceptance of Namecoin by the retailers but this is not a big issue. This is because the main financial use of Namecoin cryptocurrency is the registration of domains on its network.
Namecoin solves the problem of centralization of domain names. In normal case, when you enter a URL in the browser, the URL is sent to a centralized server which sends you an IP address like a big digital book. The Namecoin developers believe that these centralized servers are owned by big corporations or government agencies which use their influence for your behavior tracking and can even create restriction for accessing certain sites. With Namecoin, you will not get this kind of problem as Namecoin stores domain names away from a centralized server and stores it in a peer-to-peer network.
You have to spend a small amount of Namecoin when registering a domain name in this system. This fee is programmed to become smaller and smaller with time and ensures that sufficient number of desired names are still there for the newcomers. .bit domain is mostly used in Namecoin but there are others extensions too available in this network.
Namecoin needs a lot of fight to be used popularly as a currency but as a distributed DNS, it has a lot of significance and is changing the way you use the internet technology. It is aimed at decreasing the reliance on decentralized servers for information. Instead it is pushing the use of cryptocurrency technology to be used in place.
Where to buy Namecoin?
Want to buy or sell Namecoins? Click on the following companies to find out the best place for selling and buying Namecoins in Australia.
Want to find out the price of Namecoin live? View our Namecoin calculator and see the value of the coin now!