What Makes Namecoin Unique?
One of the earliest uses of blockchain technology outside of financial transactions is the fight against internet censorship through Namecoin. Namecoin is an altcoin used for registering and verifying addresses in a decentralized domain name system (DNS).
Namecoin serves as an alternative, transnational DNS that cannot be controlled by governments or corporations. The main advantage of a decentralized DNS is that it allows anyone threatened by local authorities or censorship to freely publish information online. Just as Bitcoin is a decentralized currency owned by no one, Namecoin is a decentralized DNS for URL addresses. These addresses are permanently embedded in the blockchain and cannot be seized by governments attempting to take over domains.
The Problem with Traditional DNS
Traditional DNS systems are controlled by central authorities that manage top-level domains. For example, in google.com, the .com domain is under the control of U.S. authorities, who can intercept or redirect URLs. Another example is China’s control over .cn domains.
How Decentralized DNS Works
A decentralized DNS makes it possible to have independent top-level domains, with DNS tables stored in a peer-to-peer network. Alternative domains registered in the system remain accessible as long as there are volunteers running decentralized DNS server software. Peer-to-peer networks are not subject to government control.
Based on a structure similar to Bitcoin, Namecoin has its own cryptocurrency (NMC) and blockchain for decentralized DNS.
Current Use and the .bit Domain
Currently, Namecoin does not function as a registration system for all domains, but rather as a tool for free speech, especially for domains fighting censorship in countries with limited political freedom. The top-level domain for Namecoin is .bit. Domains can be registered directly or through various services, such as dotbit.me.
Since the .bit domain exists outside the traditional internet structure, proxy servers that process DNS requests and browser extensions for Firefox are used to access websites hosted there. According to BitcoinContact, there were 178,397 .bit domains registered in 2014.