Author: Samuel

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Namecoin

What is Namecoin?

Namecoin is an open-source blockchain platform that aims to improve resistance to censorship, privacy, security online and decentralization of access to the internet.

Apart from that, Namecoin was also built to help improve the speed of some components of the internet to make it more efficient, such as identities and DNS.

What is the problem that Namecoin Solves?

Over the years, there has been quite a lot of criticism against oppressive governments all over the world. Most of this criticism is often done online, and the governments find ways of clamping down on protestors.

This form of oppression and dictatorship has been castigated all over the world, especially when it infringes on the rights of people, and more importantly, the freedom of journalism.

Most people who come online to express their views are often tracked and punished. Many have lost their lives, some have been forced to flee for their lives. What Namecoin is doing, is to make the internet a safe place once again, where people can express their opinions without worrying about repercussions, especially against oppression and dictatorship.

How does Namecoin Solve the problem?   

Namecoin is a unique blockchain platform. The description behind Namecoin is to use the benefits of blockchain to give back power to the people. While Bitcoin takes monetary freedom from the financial institutions like banks and puts it in the hands of the users, Namecoin frees technologies, identities, and DNS.

The following are some of the things that Namecoin is working at, which helps them tackle the freedom concern online.

Free Speech

Namecoin aims to make the internet a place where censorship can be resisted. This is eventually supposed to protect the right to free speech.

Identities

Users can attach identity information like OTR, GPG, Bitcoin, Keys and Bitmessage addresses to the identities that they choose.

Domains

When using Namecoin, users are able to choose .onion domains on Tor that they can use for whichever purpose online.

Decentralization

Namecoin is also bringing the benefits of blockchain, especially decentralization, to the validation of TLS (HTTPS) certificates. Therefore, with a decentralized internet where servers are not located centrally, it becomes difficult for someone to track down the user online. This decentralization is supported by blockchain consensus.

Domain Access

Domains that have often been blacklisted or have restricted access can now be accessed through .bit, a top-level domain.

To achieve the intended goals, the Namecoin software registers names and stores all the associated values in the blockchain. This way, the database is shared and distributed on a P2P network in a secure manner. It is only this software that can be eventually used to ask for information from this database and retrieve the data that is securely stored in it.

For security purposes, users are expected to update or renew their names after every 35,999 blocks. This translates to roughly every 200-250 days. After this duration, the name expires. While there are no fees charged for renewals, updates or registration on Namecoin, there are transaction fees that are applied.

What makes Namecoin better than the competitors?

The codebase for Namecoin is built on the Bitcoin codebase. There are simple changes, around 400 lines on the Bitcoin codebase, and additional lines of code that are aimed to improve on a few weaknesses in Bitcoin.

Therefore, Namecoin uses the same mining protocol as Bitcoin, though their block chains are not identical. This is also where they derived the name, Namecoin.

The reason for this is because the developers at Bitcoin were keen to create a viable currency on the blockchain, while the developers at Namecoin were more interested in coming up with a unique naming system.

As a result of the disparity in intended use case between these two projects, you will notice that protocol and consensus rules might be applicable in one but not always across the board, however much code they share between themselves.

Consensus

The consensus rules at Namecoin are written to make sure that names are unique. This is not the case with Bitcoin. In fact, users are able to store data on Bitcoin, though Bitcoin on its part, does not enforce uniqueness. In fact, in theory, developers can build layers on Bitcoin that will discard any output that does not honor the uniqueness rule. This includes perhaps, an operation that is intended to use someone else’s name illegally. These rules, however, cannot be enforced by miners. For this reason, they cannot be supported by Proof of Work (PoW).

Fees

Consumers can expect a disparity in the fee structure when using Bitcoin vs. when using Namecoin. This is true because of the obvious disparity in the volume of transactions between these two platforms. The volume of financial transactions is greater than the volume of name registrations worldwide. This is also down to the fact that Bitcoin and Namecoin both have different block sizes.

Inflation Impact

Inflation can wield serious damage on a currency. However, inflation on a naming system might only be tantamount to a squatting attack, or a spamming. This is bad, but not anywhere close to the near-fatal attack that a currency might experience.

What this means, therefore, is that Namecoin is more robust and built to withstand the shock of an inflationary attack than Bitcoin. As a result, decisions on features that address inflationary risks will not always arrive at the same conclusions between Bitcoin and Namecoin.

Scripts

Bitcoin and Namecoin might share a lot of code, but there are so many features in either that might not be applicable, or make sense to the other, especially with respect to their scripts.

A good example is the scriptPubKey. When allowed to restrict the scriptPubKeys, this feature on Namecoin might make it easy to update and renew names, making the process safer and more convenient. On Bitcoin or any other currency, this script might be harmful.

How can Namecoin be categorized?

Namecoin is a name currency. In fact, the developers at Namecoin try to reduce the patchset they have to use against Bitcoin as much as they possibly can. In case it makes sense to have a feature in Bitcoin, they can push it into Bitcoin, then merge the feature to Namecoin.

Differences in Bitcoin are only introduced to Namecoin when the changes might not make any sense to Bitcoin, especially in light of their different use cases. Theoretically, Namecoin can be used as a digital currency. However, the developers do not advise this. There are several digital currency projects, and users are advised to use those for currency purposes, not Namecoin.

What’s Namecoin’s vision on Security?

Namecoin developers have an active community who constantly monitor and report any errors that they notice in their profiles. The issues are debugged as soon as possible. The following are some of the reasons why Namecoin has managed to beef up security especially in light of being a blockchain platform that aims to fight censorship.

Monitoring

The developers actively monitor the default discovery nodes. Other than that, they add more computing power through CPU and RAM to the discovery nodes, to support their cause. As a result of this, it is virtually impossible to overwhelm the discovery nodes by sending or spamming them with requests.

Caching

Caching layers are used on the platform. This way, the DHT network is protected even if it is experiencing or recovering from a failure. In this manner, the read queries will still access nodes that use the caching layer, hence, users can still access the cached data.

Proactive Reviews

The developers proactively monitor the blockchain from time to time. This is important in the sense that it helps them identify new data as and when it is available, and check whether the new data has been generated on the DHT network or not.

Safety

It is not easy to steal a Namecoin name. According to the developers at Namecoin, to do this is almost as difficult as stealing Bitcoins. The attacker would need to have a majority of the hashrate, which is virtually impossible to achieve.

The attacker would need to steal the private keys to the name, which is very difficult, especially for users who have put in place appropriate security measures. It is, therefore, upon the user to keep their private keys safe. If this does not happen, they could be highly vulnerable.

However, the script system that is native to Bitcoin and Namecoin are written in such a way that theft is naturally a difficult thing to execute.

There are features currently in development that are supposed to allow Namecoin users more flexibility in working with anti-theft protocols, which will eventually meet their individual needs.

The following are some of the security features that users should expect on Namecoin in the near future:

  • Multisig – This is similar to the multisig system used in Bitcoin. This allows users to control changes to their names with M of N keys. These keys could be administered by company directors, or stored in secure locations, or by security service providers. The Namecoin protocol already has consensus rules that support this, though end-users are not fully exposed to it yet.
  • Offline signing – This is also a protocol that is used on Bitcoin. Users can allow names that are controlled by keys stored in a secure computer like a virtual machine that is isolated offline, or a hardware wallet.
  • Delegated renewal – This feature is specific only to Namecoin. It allows users to authorize a key to renew one name. However, this does not allow the key to change the owner of the name or the value of the name.
  • Delegated alteration – This protocol would allow the key to get authorization and change the value of the name but does not change the owner of the name. It is already supported by Namecoin, though users are yet to be exposed to it fully. With a few improvements to this protocol, it will then be rolled out.
  • Delegated partial alteration – This would allow a key to get authorization to alter a subset of one of the values of a name. for example, the key can change the IP address of the domain name, but not the TLS certificate.

51% Attacks

Namecoin has the same risk exposure to 51% attacks as Bitcoin. Therefore, the only possible adversities that might affect Namecoin are an attacker preventing transactions from being confirmed, and an attacker who reverses transactions that have been sent for confirmation.

Reversed transactions can make it possible for registrations to be stolen, especially if the transaction that was reversed is a name_firstupdate.

The reason for this is because, before registration, all names on Namecoin are deemed as “anyone can spend”, which means that before it is registered, anyone who has access to the name has a fair stake in ownership as the person who registered the name.

Anonymity

Users are advised that Namecoin, like Bitcoin, are not anonymous. Bitcoin has several flaws in their anonymity properties, and as a result, it follows that Namecoin, that is primarily sharing the same code with Bitcoin, is not completely anonymous.

However, if the user were to properly use Namecoin alongside Tor, they can enjoy anonymity in lieu of their identity and location in so many use cases. In case any user feels that they need adverse anonymity for one reason or the other, they are advised to carefully evaluate the condition or situation specific to their needs.

It is also advisable to understand that the use of Namecoin on Tor might not automatically give someone 100% anonymity. Therefore, users are advised not to be reckless and irresponsible and assume that Namecoin is fully anonymous.

On their part, Namecoin is working together with projects that offer anonymity on the blockchain like Zcash and Monero, and hopefully, this feature will eventually be a reality on Namecoin.

Examples of Namecoin use cases/applications

The following are guidelines for using Namecoin for app developers.

Developers are advised to consider working on the Namecoin Testnet. This is a good way to prevent the test from bloating the production blockchain, and at the same time, allows the users to run tests without having to spend money on the names.

In case more than one implementation might benefit from the same use case, it is advisable that the user writes a spec in such a way that any implementations that are not compatible with similar ideas does not create a problem.

Resources

https://coincheckup.com/coins/Namecoin

https://www.namecoin.org/

https://www.namecoin.org/news/

https://www.namecoin.org/docs/faq/

https://github.com/namecoin/meta/blob/master/roadmap.md

 

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LEOCoin

What is LEOCoin?

LEOCoin is a digital currency. What makes it unique in an industry where altcoins are cropping up all over the place is that it is a pioneer. LEOCoin was the first digital currency ever to be launched in the UK. By design, LEOCoin aims to get the attention of the average people; small businesses, people who engage in small to medium transactions on a daily basis.

The goal is to integrate LEOCoin into people’s lives so that they can use it for simple and mundane things like paying for a coffee date, or plumbing services.

With LEOCoin, users should be able to take advantage of a peer-to-peer (P2P) network to make transactions that are safe, fast and cost-effective. Given these features, LEOCoin is an easily accessible digital currency, whose usability should make it a currency of choice for most businessmen and entrepreneurs.

There is a lot of room for growth for LEOCoin. As a digital currency, LEOCoin borrows a lot from Bitcoin, the largest digital currency in the world. By projection at the time LEOCoin was introduced into the market, Bitcoin had around 13 million coins in circulation. Of these 13 million, only 2.6 million individuals were using Bitcoins at the time, with more than 100,000 transactions being carried out on a daily basis.

Based on this knowledge, there is a lot of room for growth, and innovation in the digital currency space and this is what LEOCoin is out to make use of.

What is the problem that LEOCoin Solves?

One of the primary goals behind LEOCoin is inclusivity. A careful look at most of the digital currencies we have at the moment reveals a technical element that makes them the preserve of very few, especially those who understand the technology behind digital currency.

This is one of the biggest challenges facing blockchain in general. The team behind LEOCoin, however, want to make digital currency accessible to everyone.

The belief is that digital currencies like LEOCoin have so much to offer, especially for local businesses. In light of this, the team behind LEOCoin works hard to make their platform as simple as possible, so that users do not necessarily need to understand the technical details behind LEOCoin to use it.

LEOCoin also sets out to solve some of the problems that users currently experience with traditional banking systems.

Primarily, third parties involved in the traditional banking system have an upper hand in that they have access to a lot of information about the transaction, and the parties involved in the transaction.

Throughout a transaction, third parties usually have lots of information regarding the person’s personal and financial data. This has often been the reason behind lots of privacy concerns, fraud, and exorbitant costs that are passed on to the customer.

LEOCoin sets out to get rid of third parties, and in the process, make transaction costs as close to zero as possible. This means that LEOCoin is getting rid of payment processing agents, credit card fees and so many other unnecessary costs that are involved in the legacy banking system.

Let’s talk about inflation, for a minute. The rate of inflation will almost always affect the value of your disposable personal income, hence diminishing your purchasing power.

However, when using digital currency like LEOCoin, the rate of inflation might affect your purchasing power, but not at the same level as with fiat currency.

Users are somewhat shielded from adversities of inflation. This is because, over a given duration, only a fixed amount of LEOCoin are produced. Apart from that, there are no institutions, not even governments, that are in play, manipulating the price or the quantity of LEOCoin that is produced and released to the market.

And, of course, these players would also want compensation for their role.

How does LEOCoin Solve the problem?

There have been a lot of lessons learned by LEOCoin and a host of other digital currencies, in the journey of Bitcoin. It is through these lessons that digital currencies have emerged, albeit to solve some of the problems inherent to Bitcoin, and at the same time carve a niche for themselves.

Experts believe that Bitcoin might not even be the digital currency that becomes the future all digital currencies promise to be. The leading digital currency that will eventually take the world by storm and usher in the future will be one that has resolved all the challenges associated with digital currencies at the moment, such as a reduction in energy consumption and 51% exposure to attack.

Initially, LEOCoin was running Scrypt-Jane, a hashing algorithm that increases the RAM demand, a process referred to as Proof of Work (PoW). This essentially meant that your ability to mine digital currency depended on the processing power of your computer. Therefore, those with supercomputers were always enjoying an unfair advantage, and this locked out so many willing participants who had average computers.

This is no longer the case since LEOCoin currently uses Proof of Stake (PoS). Instead of rewarding users for the processing power of their computers contribute to the LEOCoin network, they are rewarded for the number of coins that they hold. This means that you earn more when you hold more LEOCoins.

This is a good alternative, given that it does not hog computing resources, and levels the playing field for average users who have basic computers. Therefore, small business owners, stay at home moms, virtually anyone is now able to invest in LEOCoin.

Innovation

To live up to the vision behind LEOCoin, the team is constantly working on improving the technology behind this blockchain platform. This is to ward off attacks and make the LEOCoin ecosystem a robust business economy where merchants and customers feel safe.

Interface

LEOCoin also has a user-friendly interface that has made it very easy for users to access. This has also helped overcome the stigma associated with blockchain applications, where they are often assumed to be the preserve of people who have in-depth knowledge of the technical workings of blockchain technology.

Security, privacy, and flexibility are some of the things that are at the heart of LEOCoin. This is an assurance that customers and merchants can go about their business with ease, while at the same time enjoying the lowest transaction fees.

What makes LEOCoin better than the competitors?

One of the biggest advantages that LEOCoin has is that it has a large community of users. These are people who already trade amongst themselves in LEOCoin, thereby creating an economy of sorts.

Other than that, the LEOCoin Foundation is on a mission to further educate a wider audience on the simplicity and ease of access, to increase the uptake of this digital currency.

But, what are the inherent features that make LEOCoin better than the competition?

We look at this from two perspectives; the merchant and the consumer.

  • Consumers

The following are some of the advantages that consumers stand to gain from using LEOCoin in the course of their normal transactions.

  • Privacy

There is no need to link your personal information to transactions. This is aimed at doing away with the dangers posed by identity theft. Transactions are fully independent of personal information.

Your personal information, or identity, for that matter, are not necessary for the blockchain technology. Unless you choose to reveal your identity, it is always secure and hidden. All transactions you carry out are encrypted.

  • Transparency

All transactions that have been finalized are available on the blockchain for everyone to see. However, personal information is not visible. This means that you can tell when and how many LEOCoin have been spent on the network, but you cannot tell the people involved in the transaction.

Public addresses might be visible, but the information of the person who owns the public address is not.

  • Security

The PoS model reduces the risk exposure of 51% attacks that are common across blockchain networks. Any transaction has to be verified and approved by the P2P network. This makes interest in security a concern for the entire community.

  • Value

Compared to the cost of using traditional currency, it costs almost nothing to use the LEOCoin network. This is possible since the elimination of third parties. All the coins are accounted for in the public ledger. Therefore, there is no merchant that can charge hidden fees for the services or goods they are offering without raising red flags. Before engaging in any transaction, the fees have to be communicated upfront.

  • Ease of access

One of the areas where LEOCoin has succeeded is embedding itself into the lives of the underbanked and the unbanked in the society. This makes it easier for such people to manage their wealth. They are making capital flow easy for everyone, which has helped a lot of people get out of poverty.

  • Control

There is always a risk of freezing or requisitioning of traditional currency. Many people have had this problem with their banks in the past, and in most cases, the customer has nothing to do with the concerns. Digital currencies are not within the confines of the conventional regulators. Therefore, unless an illegal activity takes place on your account, it is very rare for you to lose access to your LEOCoin.

Merchants

Merchants have access to a market that includes the unbanked, people who barely use financial institutions to manage or store their money, but have some money to spend. These are people who would often resort to cheque cashing services or cash transactions only. The World Bank estimates that ¾ of the world is unbanked.

Transactions in LEOCoin are not reversible. Therefore, merchants are protected from fraud. It is now possible for merchants to conduct business with customers in places where fraudulent activities would normally make it difficult for banks to engage or back a transaction, or charge very high fees if they do.

LEOCoin has a merchant program in place to roll out the coin to a lot more people, especially by training them. Merchants who engage in this become LEOCoin ambassadors, which helps to build a wider and stronger community.

LEOCoin is an energy-efficient currency. It uses less energy than most of the digital currencies you can come across, which makes it a sustainable alternative. To distribute all the LEOCoin to the community, it will theoretically take 100 years.

How can LEOCoin be categorized?

LEOCoin is a digital currency that runs on the blockchain. All transactions that are carried out are recorded in a public ledger and processed by decentralized computers. There is no central repository or single administrator for LEOCoin.

What’s LEOCoin’s vision on Security?

LEOCoin is a secure platform. There are very few regulations that have been imposed on digital currencies like LEOCoin. It is virtually impossible to impose dire regulation on such digital currencies without affecting their fundamentals.

LEOCoin supports any development steps that are taken by governments to create more confidence in digital currency within the population, while at the same time encouraging innovation and continued protection for the privacy of users.

Examples of LEOCoin use cases/applications

LEOCoin targets enterprises. From small businesses to medium scale businesses, these are entities that are usually on the wrong end of high transaction fees, whether conducting international or domestic transactions. These are businesses that cannot walk into the bank and negotiate a better deal or rates for their transactions. They simply take what is given to them.

More than 33,000 merchants are already offering their services and products in LEOCoin value. There are more than 200,000 users who hold the LEOCoin.

LEOCoin leverages services on the user database. With hundreds of thousands of users already on board, this presents a wide membership and market for merchants.

While most digital currencies spend a lot on advertising, marketing and making their platforms accessible to those who understand how the cryptocurrency world works, LEOCoin simply involved members from the beginning, built a community of traders, consumers and merchants, and this is one of the reasons why LEOCoin has enjoyed a faster uptake.

In order to increase the adoption and integration of LEOCoin into daily lives, LEOCoin Foundation introduced two products, My LEO Travel and LEOCoin Merchants.

Through My LEO Travel, users are able to plan their holidays and trips accordingly, booking hotels, and paying through LEOCoin.

LEOCoin Merchant, on the other hand, indicates all the merchants that are currently accepting LEOCoin as a form of payment. This creates a ready market for them and makes work easier for customers.

Resources

https://www.leocoin.org/

https://www.leocoin.org/News.aspx

https://www.leocoin.org/faq.aspx

https://coincheckup.com/coins/LEOcoin

https://www.leocoin.org/media/1027LEOcoinWhitePaper_V2.pdf