What is Namecoin (NMC)?
Future of NMC Cryptocurrency and know how to buy NMC

#1 - What is Namecoin (NMC)?

Namecoin (NMC): The Basics

  1. Namecoin is a blockchain protocol that serves as a naming system. It is the first altcoin forked from Bitcoin. Namecoin intends to provide a decentralized, secure, and censorship-proof domain name registering services that are outside the control of governments and other centralized authorities.
  2. Since Namecoin is a fork of Bitcoin, it is also a cryptocurrency that can be used for peer-to-peer transactions. Namecoin as a cryptocurrency is identified by its ticker “NMC”. The platform supports NMC mining that can be merged-mined with Bitcoin.

Namecoin Development

  1. Unlike most cryptocurrencies, Namecoin isn’t backed by any organisation and doesn’t have a whitepaper. The project development is done by a team which comprises members from the Namecoin community; however, it was originally started by Vinced (Vincent Durham) but he later abandoned it. Apart from the official team, several anonymous developers also contribute to the project.
  2. The origins of Namecoin can be traced back to September 2010, when a discussion about theoretical BitDNS was held on a Bitcointalk forum, which was even supported by Gavin Andresen and Satoshi Nakamoto. Soon after, on April 18, 2011, Vincent Durham announced Namecoin on the forum. Namecoin then came into existence from the genesis block 19200.

 

#2 - What are the benefits of Namecoin?

Namecoin Technology

  1. Namecoin records data in pairs of names–data where each key (name) is assigned a value. The size of each value is limited to 520 bytes. In Namecoin blockchain, every name or key follows a namespace attached to it. For example, d/example represents a name “example” stored in DNS namespace for domain name example.bit. Names are required to be updated or renewed regularly every 35,999 blocks, to save them from expiring.
  2. Namecoin is based on Bitcoin but with some modifications in the code. Similar to Bitcoin, Namecoin transactions, balances and protection are also managed by a peer-to-peer network of nodes that use the SHA256 consensus algorithm. The only difference here is the mining mechanism because Namecoin is a merged-mineable cryptocurrency.
  3. Namecoin was the first cryptocurrency to use Auxiliary Proof of Work (AuxPoW) for its consensus. By using AuxPow, Namecoin and Bitcoin can be mined simultaneously. In this consensus, the child blockchain depends on the proof-of-work of parent blockchain, which means If a new block is created on Bitcoin blockchain, it will also be added to the Namecoin blockchain.
  4. Dot Bit: Namecoin’s primary motive is to provide distributed, secured DNS services and to achieve this .bit or Dot bit was created, which can be considered as the flagship product of Namecoin blockchain. It serves as a decentralized phone book for websites that use .bit service. The primary advantage of Dot bit is that it is not controlled by any centralized authority, which makes it censorship-resistant as compared to traditional DNS services.
  5. NameID is another technology brought by Namecoin. It serves as an open service for securely registering human-readable names in a decentralized way. NameID is a combination between Namecoin and OpenId, where users can easily convert their Namecoin Identities into OpenIDs. This makes NameID a solution to Zooko's triangle, which states that there are three desirable properties (Human-meaningful, Decentralized, and Secure) for name participants in a network protocol and any participant can only inherit two properties at a given time.

 

#3 - How to buy and store Namecoin?

How to Buy Namecoin?

As mentioned earlier, Namecoin does support NMC mining, so users can obtain NMC coin via merge-mining it with Bitcoin. Non-miner individuals can acquire Namecoin cryptocurrency by trading on a cryptocurrency exchange.

  1. Namecoin can be traded on various cryptocurrency exchanges, such as Bleutrade, Livecoin, Poloniex, WEX, YoBit, Cryptopia, etc. Although Bitcoin is the most chosen pairing option, Namecoin can also be exchanged with USDT, USD, DOGE, ZAR, and GBP.
  2. When buying Namecoin, users should use CoinSwitch, the largest cryptocurrency trading platform. It is home to more than 350 cryptocurrencies and can make over 45000 trading pairs. Users can compare NMC rates and trade across all available exchanges in real-time. In addition, It also allows users to store their cryptocurrencies before and after making the trade.

Namecoin Storage

Users can store NMC coins using Namecoin Core client, which includes Namecoin wallet. So far, it is available for Windows and Linux and can be downloaded from Namecoin’s official website. The team has also released their own version of Electrum wallet, which is still in beta.

 

#4 - What is the future of Namecoin?

Trend So Far

  1. As of August 2018, Namecoin has a market of over $18.5 million, which makes it the 267th largest cryptocurrency based on market capitalization in the global cryptocurrency market. More than 14.7 million NMC coins are circulating in the market. The maximum limit for Namecoin is 21 million coins.
  2. Namecoin is among some earliest cryptocurrencies. During its existence in the market, it has seen a high volatility on some occasions, which can be attributed to many reasons.
  3. Namecoin was at the $1.1 price mark on April 29, 2013 according to the limited data avaialable on it. In November 2013, Namecoin price rose to its all-time highest of $13.1 within the frame of available data. The cryptocurrency remained stable from 2015 to early 2017, when it again started exhibiting a lot of price fluctuations. As of August 2018, Namecoin price is hovering near $1.2 mark.

Also Read: Complete Analysis of Namecoin | Live Namecoin (NMC) Price Charts And Predictions

Price History

Date

Open

High

Low

Close

Volume

Market Cap

Aug 01, 2018

2.81

2.91

1.82

1.83

484,624

41,482,735

Jan 01, 2018

3.96

3.98

3.67

3.93

290,484

58,416,740

Mar 01, 2017

0.251377

0.263288

0.246930

0.250077

29,112

3,704,390

Jul 01, 2016

0.398084

0.407949

0.390442

0.399539

45,498

5,830,820

Jun 01, 2015

0.325433

0.328936

0.306910

0.307667

23,567

3,791,850

May 01, 2014

2.16

2.28

2.16

2.24

195,034

18,675,700

Apr 28, 2013

1.10

1.12

1.08

1.11

-

5,969,080

Future Trends

Although, Namecoin has been showing a lot of activity in its price recently, It is forecasted to follow a slow pace of growth. Some analysts predict that in five years, its price could increase by nearly 187% over its price in August 2018. However, these predictions are subject to various factors and are likely to divert from their forecasted results.

 

#5 - How is Namecoin different from other cryptocurrencies?

  1. Namecoin is a fork of Bitcoin but its purpose differs from its parent currency, where Bitcoin serves a sole purpose of facilitating peer-to-peer transactions, Namecoin is used to pay for its distributed domain name registering services.
  2. Unlike Bitcoin and Ethereum, Namecoin uses Auxiliary proof-of-work (Aux PoW) for its consensus, which allows it to be merge-mined with Bitcoin.
  3. Another difference that Namecoin has with Bitcoin is that its transactions contain additional commands as name and data which are essentially a pair of keys and their corresponding values.

 

#6 - Should you invest in Namecoin?

  1. Namecoin has been around in the cryptocurrency market much longer than most cryptocurrencies today; however, despite this, it has not gotten much attention until recently. In 2014, it was among the top ten cryptocurrencies by market capitalisation, which is now changed due to the introduction of hundreds of new cryptocurrencies.
  2. Namecoin was abandoned by its creator which can be seen as a red flag by many. The project is currently being developed with the support from its community. The current team has been actively taking the project forward and also provides regular updates on social media channels.
  3. Namecoin has managed to last this long with only community support but now the cryptocurrency market is getting crowded with many projects that are backed by big organisations. Other than this, Namecoin also faces some tough competition from some other cryptocurrencies that provide similar services, two of them are Peercoin and Emercoin.
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