Namecoin

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Namecoin
Namecoin Logo
Denominations
SymbolNMC
Subunits
 0.001mNMC (Milli Namecoin)
 0.000001µNMC (Micro Namecoin)
 0.00000001Swartz
Websitehttp://www.namecoin.org/


Namecoin (Symbol: or NMC) is a cryptocurrency that is mined with bitcoin software as bonus.[1][2] It is based on the code of bitcoin and uses the same proof-of-work algorithm. Like bitcoin, it is limited to 21 million coins.[3]

Unlike bitcoin, Namecoin can store data within its own blockchain transaction database. The original proposal for Namecoin called for Namecoin to insert data into bitcoin's blockchain directly. Anticipating scaling difficulties with this approach, a shared proof-of-work (POW) system was proposed to secure new cryptocurrencies with different use cases.

Namecoin's flagship use case is the censorship-resistant top level domain .bit, which is functionally similar to .com or .net domains but is independent of ICANN, the main governing body for domain names.[4]

Transactions[edit]

A peer-to-peer network similar to bitcoin's handles Namecoin's transactions, balances and issuance through SHA256, proof-of-work scheme (they are issued when a small enough hash value is found, at which point a block is created; the process of finding these hashes and creating blocks is called mining). The issuing rate forms a geometric series, and the rate halves every 210,000 blocks, roughly every four years, reaching a final total of 21 million NMC.

Namecoins are currently traded primarily for USD and other cryptocurrencies, mostly on online exchanges. To avoid the danger of chargebacks, reversible transactions, such as those with credit cards or PayPal, are not advised since Namecoin transactions are irreversible.

Addresses[edit]

Payments and records in the Namecoin network are made to addresses, which are Base58-encoded hashes of users' public keys. They are strings of 33 numbers and letters which begin with the letter N or M. Initially addresses beginning with 1 existed but this was changed to avoid confusion with Bitcoin addresses.

Records[edit]

Each Namecoin record consists of a key and a value which can be up to 520 bytes in size. Each key is actually a path, with the namespace preceding the name of the record. The key d/example signifies a record stored in the DNS namespace d with the name example and corresponds to the record for the example.bit website. The content of d/example is expected to conform to the DNS namespace specification.

The current fee for a record is 0.01 NMC and records expire after 36000 blocks (~200 days) unless updated or renewed. Namecoins used to purchase records are marked as used and destroyed, as giving the fee to miners would enable larger miners to register names at a significant discount.[5]

Uses[edit]

Proposed potential uses for Namecoin besides domain name registration include:

History[edit]

In September 2010, a discussion was started in the Bitcointalk forum about a hypothetical system called BitDNS and generalizing bitcoin. Gavin Andresen and Satoshi Nakamoto joined the discussion in the Bitcointalk forum and supported the idea of BitDNS, and a reward for implementing BitDNS was announced at the Bitcointalk forum in December 2010. In June 2011, WikiLeaks mentioned the project via Twitter.[9]

On block 19200 Namecoin activated the merged mining upgrade to allow mining of Bitcoin and Namecoin simultaneously, instead of having to choose between one or the other; this fixed the issue of miners jumping from one blockchain to another when the profitability becomes favorable in the former.[10]

Two years later, in June 2013, NameID was launched.[11] NameID allows to associate profile information with identities on the Namecoin blockchain, and an OpenID provider to allow logging into existing websites with Namecoin identities. The main site itself is accompanied by an open protocol for password-less authentication with Namecoin identities, a corresponding free-software implementation and a supporting extension for Firefox.

In October 2013, Michael Gronager, main developer of libcoin, found a security issue in the Namecoin protocol, which allowed modifying foreign names. It was successfully fixed in a short timeframe and was never exploited, except for bitcoin.bit as a proof-of-concept.[12]

In February 2014, a plug-in for Firefox compatible with Windows and Linux, FreeSpeechMe, was released, providing automatic resolution of .bit addresses. This is available by downloading the Namecoin blockchain and running it in the background.[13]

Namecoin was also mentioned by ICANN in a public draft report as the most well-known example of distributing control and privacy in DNS.[14][15]

One month later, in March 2014, Onename was released. It is another identity system built on top of the Namecoin protocol that stores usernames and personal profile data in the Namecoin blockchain.[16]

A 2015 study found that of the 120,000 domain names registered on Namecoin, only 28 were in use.[17]

Onename co-founder Muneeb Ali on 12 September 2015 at the Blockstack Summit 2015 stated that the Namecoin network is not decentralized and the mining group Discus Fish controls 60-70% of its hashing power.[18]

.bit[edit]

.bit is a top-level domain that was created outside the most commonly used Domain Name System (DNS) of the Internet, and is not sanctioned by the Internet Corporation for Assigned Names and Numbers (ICANN). The .bit domain is served via the cryptocurrency Namecoin infrastructure, which acts as an alternative, decentralized domain name system.[19]

Use of the .bit domain requires a copy of the Namecoin blockchain, a supporting public DNS server, or a web browser plug-in.[19]

In February 2014, a beta version of a Windows/Linux Firefox plug-in called FreeSpeechMe was released that allows automated resolution of .bit addresses, by downloading the Namecoin block chain and running it in the background.[20] OpenNIC's DNS servers also support resolution of .bit domains.[21][22] .bit domains can also be used to point to a website which can potentially be used for malicious activities.[23]

See also[edit]

References[edit]

  1. ^ Buterin, Vitalik (2013-10-26). "Bitcoin in Israel, Part 3: Interview on Alternative Currencies". Bitcoin Magazine.
  2. ^ "Namecoin – Next Generation Domain Name System". CoinJoint. 2014-06-05. Archived from the original on 2014-08-12.
  3. ^ Loibl, Andreas (2014-08-01). "Namecoin" (PDF).
  4. ^ Dourado, Eli (2014-02-05). "Can Namecoin Obsolete ICANN (and More)?". Theumlaut.
  5. ^ "Namecoin FAQ".
  6. ^ Kirk, Jeremy (2013-05-24). "Could the Bitcoin network be used as an ultrasecure notary service?". Techworld.
  7. ^ ecdsa.org/bitcoin-alias/, Archived page
  8. ^ ecdsa.org/bitcoin_URIs.html, Archived page
  9. ^ "Twitter / wikileaks: Namecoin and Bitcoin will be ..." WikiLeaks, via Twitter. 2011-06-09. Retrieved 2014-05-20.
  10. ^ "Merged Mining: Analysis of Effects and Implications". repositum.tuwien.ac.at. Retrieved 2018-12-24.
  11. ^ Kraft, Daniel (2013-07-25). "NameID - Use namecoin id/ to log into OpenID sites". Namecoin Forum.
  12. ^ Gilson, David (2013-10-28). "Developers attempt to resurrect Namecoin after fundamental flaw discovered". CoinDesk.
  13. ^ Reyes, Ferdinand (2014-02-13). "FreeSpeechMe: The new anti-censorship and secure domain resolving Namecoin-based plug-in". Bitcoin Magazine.
  14. ^ "The Internet Corporation for Assigned Names and Numbers Identifier Technology Innovation – Draft Report" (PDF). ICANN. 2014-02-21.
  15. ^ Hofman, Adam (2014-03-19). "Bitcoin and Namecoin Appear in Draft ICANN Report – U.S. Plans to Relinquish Remaining Control of Internet". Bitcoin Magazine.
  16. ^ Rizzo, Pete (2014-03-27). "How OneName Makes Bitcoin Payments as Simple as Facebook Sharing". CoinDesk.
  17. ^ Kalodner, H. A., Carlsten, M., Ellenbogen, P., Bonneau, J., & Narayanan, A. (2015, June). "An Empirical Study of Namecoin and Lessons for Decentralized Namespace Design". In WEIS.
  18. ^ "Onename Drops Namecoin, Switches to Bitcoin". Cointelegraph. 14 September 2015.
  19. ^ a b Gilson, David (June 18, 2013). "What are Namecoins and .bit domains?". CoinDesk. Archived from the original on 2013-07-03. Retrieved April 30, 2018.
  20. ^ Reyes, Ferdinand (February 14, 2014). "FreeSpeechMe: The new anti-censorship and secure domain resolving Namecoin-based plug-in". Bitcoin Magazine. Retrieved April 30, 2018.
  21. ^ "OpenNIC Wiki: OpenNIC Peers". opennicproject.org.
  22. ^ Helms, Kevin (7 Mar 2017). "How to Obtain and Use .Bit Privacy Domains". Bitcoin. Retrieved 7 October 2018.
  23. ^ ".Bit Domain Used To Deliver Malware and other Threats". TrendMicro. 19 Nov 2013. Retrieved 7 October 2018.

External links[edit]