Detailed explanation of the social network platform Cardano combined with domain names

Forwarded Title: Detailed explanation of the domain-integrated social networking platform Cardano Connect - CNS, exploring investment opportunities in the Cardano ecosystem.

CNS Project Introduction

Cardano Connect (CNS) is a social networking platform built on the Cardano network. Users can create and manage their social profiles on Cardano, and they can use .ada domain names as their social identity portals.

This platform enables you to find friends, participate in events, and expand your social network with trusted individuals. Additionally, CNS can issue achievement certificates, ensuring that this information is stored decentralized on the blockchain while enhancing data storage efficiency. From a product perspective, CNS acts as an ENS (Ethereum Name Service) with social business cards on Cardano.

The CNS platform consists of three built-in applications.

1. CNS Domain Registration: The registration process is completely decentralized. All CNS domain registration records are stored in the on-chain registry, ensuring that each CNS is a unique NFT (Non-Fungible Token) guaranteed by Plutus. CNS also adopts a new data architecture allowing each UTxO (Unspent Transaction Output) to exceed 4000 minting records. Through further registration splitting methods, CNS V1 can support over 1 million registrations. These technologies and solutions are inspiring for the Cardano blockchain, and the team has stated that they will open source these technologies and innovations to support the development of the Cardano ecosystem.

1. CNS Auction: Rare and meaningful CNS domain names are reserved for auctions. The domain registration process occurs entirely on-chain, similarly processed by Plutus scripts to ensure security. The auction process is fully decentralized, meaning even the CNS team cannot access the funds locked in the auction, ensuring that bidders face no asset security risks during the auction process.

1. CNS User Records: All user records, including virtual domain names and social profiles, are designed with a token access control system to protect the security of user data. Only the owner of the record (i.e., the holder of the CNS NFT) can edit these records.

Cardano Ecological Status

It is reported that CNS has secured seed funding from Emurgo. Cardano is composed of three organizations: the Cardano Foundation, responsible for development by Input Output HK (IOHK), and Emurgo. Emurgo is the official commercial arm of Cardano, dedicated to promoting widespread adoption of Cardano and increasing awareness of the Cardano ecosystem.

When it comes to Cardano and its ecosystem, despite the rotation of bull and bear cycles, ADA’s market capitalization remains firmly in the top ten. However, for most users within the industry, the development of its ecosystem still maintains a mysterious veil. Although the price trend of ADA shows strong correlation with mainstream currencies like BTC and ETH, the recent surge in BRC-20 token assets and the development of the BTC Layer2 track have highlighted a sharp contrast with the quiet atmosphere of the Cardano ecosystem. Notably, the Ethereum (ETH) ecosystem, which has always been in a leading position, requires no further mention.

Comparison chart of the trends of ADA and BTC during the year

According to data from Cexplorer.io, the number of active accounts per Epoch (Cardano operates on a 5-day Epoch basis) has recently been approximately 100,000, with a peak of 267,000. The monthly number of active accounts is around 520,000, peaking at 1,250,000. Additionally, according to DappRadar, Ethereum, Binance Smart Chain, and Zksync have 4,512, 5,322, and 231 Dapps respectively, while Cardano only has 55 Dapps listed. The scarcity of Dapps directly limits the projects and gameplay options available to participants, resulting in relatively fewer on-chain activities and hindering the formation of an effective positive feedback loop in the ecosystem.

Seven years ago, in September 2017, Cardano was officially launched, with founder Charles Hoskinson also being a co-founder of Ethereum. Prior to this, he was also a co-founder of BitShares and served as its acting CEO, sharing entrepreneurial experiences with figures like BM (Dan Larimer) and Vitalik Buterin. His technical prowess and entrepreneurial background, even by today’s standards, remain highly competitive. However, at that time, the fundamentals of the entire industry were very weak, with few industry participants, while the internet frenzy was sweeping the world.

Now, with the SEC approving BTC ETFs and BTC breaking its previous high of $69,000, coupled with macroeconomic expectations of interest rate cuts, off-exchange funds are also opting to allocate to risk assets like cryptocurrencies. This, along with the halving cycle of BTC, indicates that we are currently in a bull market cycle, with ample liquidity and a preference for risk assets.

Comparing the scale of the Cardano ecosystem to that of BTC and ETH, it’s akin to the disparity in fund volume between BTC and traditional finance ten years ago, operating on different levels. Despite this, the market value of ADA remains at such a high level. ADA holders seem unaffected by the bull market cycle, as they have not liquidated their ADA tokens or switched to more stable assets like BTC/ETH with higher certainty. There is also no significant direction for funds to flow within the ecosystem. As a proof-of-stake (POS) consensus public chain, the staking ratio of the Cardano network is as high as 62%.

Cardano Connect(CNS) Airdrop Plan and Outlook

Can CNS leverage ADA’s staking ratio and even further attract funds within the Cardano ecosystem? Could the CNS airdrop plan become a lever for this?

According to CNS official information, airdrops mainly occur in the following stages:

1. Users participating in the CNS testnet phase.

2. ADA token staking activities (SPO).

3. Users purchasing CNS domains.

4. Based on the number of invited users as a weighting factor.

From this, it can be seen that the main targets of CNS’s official airdrop are testnet users, users staking ADA in SPO, genuine purchasing users, and those with a certain number of invited users.

For users who want CNS points, they can obtain them through the following actions: 1) Participating in the testnet, 2) Staking but not purchasing, 3) Staking and purchasing, 4) Obtaining enough ADA to purchase a domain name, 5) Invitation activities.

The point-based airdrop mechanism led by Blur has been imitated by many project teams, and the benefits of this mechanism are mainly twofold:

1. The referral mechanism can fully mobilize individual enthusiasm, achieve a large amount of exposure in a short period, and achieve a good product and marketing cold start effect.
2. Conveying the expectation of airdrops to the market openly will strengthen the attraction and retention effects, making the data more appealing and further achieving the goal of attracting traffic, forming a positive feedback loop.

MerlinChain, against the backdrop of a bull market, achieved a staking volume of $4 billion in less than two months through this point-based gameplay. The meme token huhu and airdrop token voya within its ecosystem saw over 1000% increases in value under the overflow of traffic and liquidity, successfully benefiting the entire ecosystem through the flywheel effect.

Looking forward to CNS, with strong institutional endorsement and an official background in the bull market context, if the effect of this airdrop can be maximized on the operational side and the project’s own strength and external market enthusiasm can be leveraged, what we can expect may not only be a decent return on investment, but also the breakthrough of the entire Cardano ecosystem. In the stage of continuous increase in the overall market value in the crypto field, seizing one’s own market position is crucial.

Statement:

1. This article is reproduced from [TechFlow], the original title is “Detailed explanation of the social network platform Cardano Connect - CNS combined with domain names, exploring investment opportunities in the Cardano ecosystem”, the copyright belongs to the original author [Cardano Connect - CNS], if you have any objection to the reprint, please contact Gate Learn Team, the team will handle it as soon as possible according to relevant procedures.

2. Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.

3. Other language versions of the article are translated by the Gate Learn team, not mentioned in Gate.io, the translated article may not be reproduced, distributed or plagiarized.