Even though Namecoins can be mined independently, they are usually mined as part of bitcoin mining by utilizing the merged mining technique as explained earlier.
This way Namecoin can be mined as a by-product of bitcoin mining.
The First Bitcoin Fork and Its Use Case for Decentralized DNS (Part 2)
Solo mining is no longer profitable as is evident from the following difficulty graph; instead, it is recommended to use merged mining, use a mining pool, or even use a cryptocurrency exchange to buy Namecoin.
Namecoin difficulty as shown at: https://bitinfocharts.com/comparison/difficulty-nmc.html (since December, 2016) Various mining pools such as also offer the option of merged mining.
This allows a miner to https://slushpool.com mine primarily bitcoin but also, as a result, earn Namecoin too.
Another method that can be used to quickly get some Namecoins is to swap your existing coins with Namecoins, for example, if you already have some bitcoins or another cryptocurrency that can be used to exchange with Namecoin.
An online service, , is available that provides this service.
This service allows conversion from https://shapeshift.io/ one cryptocurrency to another, using a simple user-friendly interface.
Why This Matters for Blockchain Technology
For example, paying BTC to receive NMC is shown as follows: 1.
First the deposit coin is selected, which in this case is bitcoin and coin to be received is selected, which is Namecoin in this case.
In the top editbox, the Namecoin address where you want to receive the exchanged Namecoin is entered.
In the second editbox, at the bottom the bitcoin refund address is entered, where the coins will be returned to in case the transaction fails for any reason.
Key Points to Remember
- Obtaining Namecoins Even though Namecoins can be mined independently, they are usually mined as part of bitcoin mining by utilizing the merged mining technique as explained earlier.
- This way Namecoin can be mined as a by-product of bitcoin mining.
- Solo mining is no longer profitable as is evident from the following difficulty graph; instead, it is recommended to use merged mining, use a mining pool, or even use a cryptocurrency exchange to buy Namecoin.
- Namecoin difficulty as shown at: https://bitinfocharts.com/comparison/difficulty-nmc.html (since December, 2016) Various mining pools such as also offer the option of merged mining.
Going Deeper: Advanced Concepts
The exchange rate and miner fee are calculated instantly as soon as the deposit and exchange currency are chosen.
Exchange rate is driven by the market conditions whereas miner fee is calculated algorithmically based on the target currency chosen and what the target network’s miner would charge.
Conclusion
Obtaining Namecoins represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.