Namecoin of Ethereum: can it be a real alternative to traditional cryptocurrencies?
The decentralized application (APP) and the blockchain technology in Ethereum were at the forefront of their innovative platform of intelligent contracts. However, one of the most intriguing projects is Namecoin, a cryptocurrency that claims to decentralize the DNA table – a database that maps crazy domain names on IP addresses. But what exactly Namecoin offers and can be used as a real alternative to traditional cryptocurrencies?
What is Namecoin?
Namecoin, also known as NMC, is a blockchain Open Source project designed on the Ethereum network. This was created in 2012 by a team of developers who wanted to provide a decentralized DNA solution that could be safer and less exposed to censorship than the traditional DNA services. The name “Namecoin” derives from its ability to preserve domain names as non -encryption data, which is the main feature of the algorithm of Ethereum’s arrangement of work.
Decentralization of the DNA table
In traditional DNS systems, each domain name is associated with an IP address. However, this approach presents significant restrictions on safety and scalability. Namecoin’s purpose is to modify it by memorizing domain names as non -cryptographic data. Each domain name is represented by a map of the univocal identifier (ID) to the IP address. This decentralized database guarantees that domain names are not controlled by any unit or organization.
Can Namecoin be used as a currency?
One of the main reasons why Namecoin was created first of all was a decentralized alternative to traditional currencies. However, can it really compete with cryptocurrencies such as Bitcoin (BTC) and Ethereum Native Cryptovace, Ether (ETH)? Although Namecoin is not currently used as a daily commercial exchange tool, it has some interesting features that are worth exploring.
Fixed NMC price?
You will have to buy a certain amount of NMC markers to use Namecoin. However, prices range from the demand and supply of the market. The current NMC price is about $ 0.01 for Marker, which may seem low compared to other cryptocurrencies. However, Namecoin is a relatively stable circulating delivery that could help maintain its value.
Is there a BTC or USD exchange rate?
Namecoin is an exchange of cryptocurrencies where you can buy and sell NMC markers with various Fiat currencies such as BTC (Bitcoin), ETH (Ethereum) and more. Current exchange rates can change, but it is possible to test them in reliable online bags.
Challenges and restrictions
While Namecoin has some unique features, he still faces a series of challenges that could limit his acceptance:
1
Security : as a decentralized DNA system, Namecoin is more vulnerable to attacks and the use of traditional cryptocurrencies.
- Scalability : While Ethereum Blockchain can develop a large amount of data, the Namecoin database is designed for smaller applications.
3
Regulatory uncertainty : Namecoin operates in a gray area for rules and laws relating to decentralized networks.
Conclusion
Namecoin is an intriguing project that has the potential to decentralize DNA tables and provide a safe alternative to traditional cryptocurrencies. Although it may not yet be a practicable currency, its unique functions are worth exploring those who are interested in blockchain technology and decentralized networks. As with any new cryptocurrency or project, it is important to conduct research and understand the risks before the investment.
Disclaimer : This article is only for information purposes and must not be considered as an investment in suggestions. Always do a careful search before taking your decision and consult a financial consultant.