Namecoin has the advantage of being one of the first altcoins copying the Bitcoin Protocol.
It is based on the SHA-256 protocol, and its developers claim that it comes with some additional features that increase the transparency of transactions:
registering and transferring arbitrary keys
the possibility to create new domain names outside ICANN control, by creating new top level domains
attaching values to the names
secure trading features
expiration dates for names, which decrease the possibility of theft
The Namecoin was implemented in April 2011, a period in which the Bitcoin was just reaching its peaks. It was improved in February 2014 with a new version called FreeSpeechMe, which is a protocol allowing automatic resolution of .bit addresses.
The users must pay 0.01 NMC to register new domains, and then the owner has full ownership of the domain, including the possibility to close or transfer the domain.
Why is it special?
The system allows people to create identity systems, messaging systems and personal namespaces. It is mined just like the bitcoin, under a proof-of-work system. There will be 21 millions of Namecoins in circulation, when mining is supposed to end. Currently, the system generates 50 new Namecoins per block. Even if the Namecoin disappoints traders lately, it is still traded on major exchange websites such as BTC-E, Kraken and Cryptsy.
The Namecoin can be used to create cheap addresses, but the problem with those is that they are vulnerable. Many speculators use the Namecoin to buy cheap domains, to park those, hoping for a profit later.
Perspectives for the future
The Namecoin is not doing so great lately, as the charts show. Besides the flourishing period at the end of 2013, which was partially owned to the Bitcoin success, the charts are going down continuously. The Namecoin also had a good period when FreeSpeechMe was launched in February 2014, but since then, the impressive number of new coins appearing all the time and the lack of interest for developers for this altcoin might kill it soon.
source: http://www.cryptopips.com/altcoin-news/namecoin-review/
Namecoin - dying crypto
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