Namecoin: a Bitcoin Alternative Crypto Currency

Namecoin is a digital currency based on bitcoin’s technology, its features are high-security and untraceability. Namecoin has similar concepts with bitcoin, it’s based on bitcoin’s codes. However Namecoin uses a new block chain that is independent of the bitcoin block chain.

The costs of registering a Namecoin domain name consists of 2 parts: network charges and handling fees. These fees are paid through Namecoin(NC), and when you first register the fee is 50 NC. Every two months this fee is reduced by two times, which means after a year the network fee is less than 1NC. The reason is that higher fees in initiation of account posts an entry barrier to make sure there’s enough domains. However as time passes, after a few years, the costs will become negligible.

This fee will not be transferred to anyone, as it’ll be destroyed in the transaction process. While handling fee will be paid to miners, especially in the beginning of Namecoin mining. The amount of handling fee is decided by users, it can be 0.01NC or higher. The higher the handling fee, the faster the transaction will be processed. Similar to bitcoin mining, Namecoins can be acquired through mining. Other than that you can buy from cryptocurrency exchanges, or trade with other users on a trading platform.

You’ll need to upgrade your domain name every 3 months, this process is free of charge. The process of upgrading is through the Namecoin in your domain account bound as an input, generating transaction and your system being upgraded. Your account will be added 0.01NC, this is for authorization purpose and can’t be used for transaction. It also protects your NC account from being hacked.

Namecoin’s Technical Aspect
Generally you need to download and install Namecoin software to use Namecoin. And you can mine Namecoin the same time as you mine bitcoin, as they both have the same default port of 8332. To mine both of these digital currencies, you need to choose different port for each of them. And if you have enough Namecoin fund you can run the command “namecoinid name_new”, and 2 values will be generated. A shorter random code and a longer transaction ID will be generated. After 12 transaction blocks you can run the “namecoind first_update” command for mining.

Since the .bit top domain is not completely online, you need to install appropriate plug-in before you’ll be able to see it on the internet browser. Even when you have enough Namecoin, a waiting period of 20 hours is required before user can register for a domain. To prevent anyone from hacking the transaction process, and hacking the domain, there’s a 12 encrypted blocks. These blocks provide enough time for users to upload the domain, and can prevent the domain from double registration. You can see your domain at “namecoind name_list”, and use command “namecoind name_scan” to see the list of all domains.

Dot-BIT project
Dot-BIT is the first one to adopt Namecoin project, which is based on DNS system. By using .bit TLD domain names, the developer hopes to provide resources and developing tool to help promote Namecoin. The .bit domain is popular among developers and even individual users.

The project is still in beta testing phase, there are 4 DNS servers, and the number of domain names have reached 75,711.