Namecoin (NMC) is a cryptocurrency. Its software and code is based on Bitcoin. The technology uses the same set of rules. It also holds its own Namecoin value and other unique features.
History of the Namecoin
In September 2010 a Bitcointalk thread started. This page talked about a system called BitDNS and simplifying Bitcoin. Two of the biggest names in the industry contributed their ideas. They supported the concept of BitDNS. A reward for carrying out BitDNS was announced in December 2010. Soon a developer performed this idea. On April 2011 Namecoin was born.
The new currency faced hard times. It struggled to gain traction, unlike other altcoins. Prices experienced steep drop. Numbers were going down. It lost value over time.
Namecoin had plenty to catch up to. The adoption was not as good as its counterparts. This is something that the Namecoin value had to endure for quite a while.
Namecoin Value Factors
A number of factors were responsible for the slow pace of Namecoin value. First, it was not exactly easy to use. Namecoin wallet is not optimized. Population was still low. A small user base means there are only a few tutorials available. It did not take off as fast as Bitcoin or other leading names.
Next factor is Namecoin’s goals. The developers lost track of their mission. They were almost bankrupt at one point. Back then, this was enough to provide market signals that affected the Namecoin value.
All of this greatly affected the prices. Movements were up and down. Exposure was not as good as they expected it to be. Population remained low in numbers.
In June 2013, NameID launched. This was a new part of one of the altcoins that seek to drive Namecoin value up again. The technology is a service to associate profile information with identities on the blockchain and an Open ID provider. All of this allows logging into websites with current identities.
Following NameID in 2013 was a security issue in the protocol. The issue allowed changing foreign names. It was resolved right away and did not affect the Namecoin value drastically.
ICANN praised the altcoin in a report as a good example of distributing control and privacy in DNS.
In March 2014, another identity system was built on top of the current protocol. This stores personal profile information in the system’s blockchain. It was purely for profile information and does not support authentication without passwords or log-in.
While all of these events allowed Namecoin value to go up, it still faces plenty of challenges ahead.