tl;dr
ENS Labs, the organization behind Ethereum Name Service (ENS), has unveiled a Layer-2 solution called Namechain to enhance the scalability of blockchain-based identities. The announcement was made at the "frENSday" conference in Bangkok on November 11. Namechain aims to reduce Ethereum gas fees and ...
ENS Labs, the organization behind Ethereum Name Service (ENS), has introduced a Layer-2 solution called Namechain to enhance the scalability of blockchain-based identities. The announcement was made at the "frENSday" conference in Bangkok on November 11. Namechain aims to reduce Ethereum gas fees and simplify the name registration process using rollup technology.
ENS Labs plans a phased migration approach to implement these changes, allowing users to choose between the Layer-2 network and the Ethereum mainnet for their ENS names. Additionally, ENS Labs has requested a 4 million USDC annual budget from the ENS DAO to support the rollout of ENSv2 and Namechain.
This development follows ENS's recent integrations with PayPal and Venmo and has led to a slight increase in ENS token prices, positioning ENS favorably within the Ethereum ecosystem.
ENS Labs initially presented the ENSv2 upgrade as a solution to rising transaction costs and scalability constraints on Ethereum. Since ENS launched in 2017, it has streamlined Ethereum use by mapping complex addresses to readable names. However, as Ethereum’s network grew, the need for lower costs and faster processing grew in parallel.
To manage these growing demands, ENSv2 implemented a hierarchical registry system. This permits users to manage subdomains more efficiently and set up custom resolvers. Namechain now builds on these ENSv2 revisions, utilizing rollup technology to reduce gas fees and simplify the name registration process.
To minimize potential disruptions, ENS Labs will adopt a phased migration approach, starting with changes to the resolution process. This plan allows users flexibility, allowing them to choose whether to keep their ENS names on the Layer-2 network or the Ethereum mainnet.
To support the rollout of ENSv2 and Namechain, ENS Labs has asked for an annual budget of 4 million USDC from the ENS DAO. ENS has recently broadened its capabilities. In September, it added integrations with PayPal and Venmo, allowing crypto transfers for over 270 million US users. In reaction to the news, ENS token prices increased slightly, trading at $26.28.
This layer 2 migration improves ENS’s standing within the Ethereum ecosystem, providing developers with greater registry flexibility and giving users an affordable, high-performance experience.