February 21, 2024

Decentralized Identity Use Cases for Cardano Connect (CNS)


AB Decentralized Identity Use Cases For Cardano Connect (CNS)

In a previous blog about Cardano Connect (CNS), there was a discussion about the concept of having a Web3 decentralized user identity in the Cardano blockchain ecosystem. Cardano Connect is a social and decentralized identity platform built leveraging Cardano’s decentralized blockchain that allows people to buy a customized .ada CNS linked to their wallets via a special Cardano NFT. This NFT or token contains the power to verify and control the information associated with one’s identity in the Cardano ecosystem.

To explore why having a verified decentralized personal identity is important, let’s explore its various real use cases below, including how it is better than existing, centralized ways of managing one’s identity.

Control and manage personal data

The current DNS structure that exists on the Internet is a centralized database. On the Internet, buying a domain name or website is not the same as owning it, since at any point, the name can be removed from the owner’s control. It’s more akin to renting the name. 

In contrast, a domain name that is owned and managed via a decentralized blockchain gives total ownership to the person who buys it. The registry of the domains is inscribed on the blockchain network and the selling, auctioning, and editing of the domain are all managed by that decentralized blockchain’s smart contracts (programmable and self-executing contracts). There is no middleman or third party in control over the domain. 

In blockchain or Web3, a domain name is represented by a unique NFT or non-fungible token issued on a decentralized blockchain and is held in a user’s crypto wallet. The owner of this token has total control over the domain they purchased. The entire way the system functions is changed by that one change, but that’s not all it allows.

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Use cases and benefits of decentralized identity
AB Decentralized Identity Use Cases For Cardano Connect (CNS) IG

Owning a verified personal Web3 domain or one’s own decentralized identity opens up many new potential use cases for the owner. These domains are compatible in differing ways with the entire blockchain tech stack and allow for use cases such as:

  • Web3 self-sovereign identity: With a single NFT that represents a personal .ada CNS, a user can have a digital profile that can store an avatar, social links, NFT collections, verified achievements & credentials, and interactions with smart contracts. There is no need for a user to store and manage their identity with a third party or centralized company that is vulnerable to security breaches. These NFTs are issued and stored on a decentralized blockchain and can be integrated with other popular dApps, messaging services, and more to prove one’s identity while enabling the user to have complete control over their identity.
  • Forget about passwords: Remembering passwords can be a hassle and annoying. Storing them in browsers is unsafe, and password managers can be exploited by hackers. CNS is a potential way to offer verified access to any Cardano dApp or web service through an owned NFT and remove the need for using unsafe passwords. 
  • Substitutes for abstract crypto wallet addresses: An .ada CNS using Cardano Connect is easy to remember and share. There is no need to share a long string of difficult numbers and letters that make up crypto addresses. This personal .ada CNS can take the place of a user’s long crypto address. This makes payments and transactions much easier for both the sender and receiver.
  • Eliminate the possibility of mistakes: Users get a little paranoid when sending crypto to a new crypto wallet address due to the long string of numbers and letters. Even after checking the first and last characters of a wallet address, it can still be nerve-racking to send the transaction. A CNS does away with that uncertainty by making it easy to remember or share a simple .ada CNS akin to a URL. 
  • Onboard more people to crypto: A crypto wallet and making crypto transactions is a substantial barrier for newcomers, especially for non-technical people. However, a Cardano Connect .ada CNS is a simple straightforward concept to understand once people set up a wallet.  
  • Decentralized sales: A regular domain has to be sold via a registrar, such as Google Domains, Shopify, Hover, GoDaddy, etc. They can block sales, demand high fees, and exert overall control over the entire process. A CNS .ada handle is purchased through the Cardano network, with no intermediary and can be done at any time.

These are some of the benefits of having a personalized .ada CNS and a verified decentralized identity, especially for users in the crypto space. 

Cardano Connect overhauls one of the fundamental services of the Internet – centralized domain names – and changes how users can interact with the entire Web and blockchain dApp (decentralized applications) space at a fundamental level. Gone will be the early crypto days of long strings of numbers and characters, which are increasingly replaced with easy-to-remember names.

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