ENS Labs, the organization behind Ethereum Name Service (ENS), has revealed a Layer-2 solution to boost the scalability of blockchain-based identities.
After months of development, the announcement was made on November 11 at the “frENSday” conference in Bangkok.
ENS Launches Namechain to Cut Ethereum Gas Fees
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. “Vitalik.eth,” the ENS address of Ethereum co-founder Vitalik Buterin, is one example of a readable name.
“This is the next evolution in ENS and part of the larger ENSv2 direction. By dramatically reducing costs, improving performance, and providing a familiar Ethereum developer experience our hope is to see new opportunities for ENS and Ethereum flourish,” ENS stated on X.
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. Working alongside ENSv2, Namechain is designed to make managing blockchain identities more inexpensive and user-friendly.
Before committing to this path, ENS Labs evaluated multiple Layer-2 options, including Matter Labs’ ZK Stack. Eventually, the organization decided to build its own in-house solution, driven by the need for a seamless user experience.
The recent release of EIP4844 also made Ethereum-based L2 solutions more scalable and cost-effective. To minimize potential disruptions, ENS Labs will adopt a phased migration approach, starting with changes to the resolution process.
“Big moves for ENS! Namechain is set to redefine user experience with reduced costs and faster performance. Can’t wait to see the impact this will have on the ENS ecosystem and beyond,” said one X user.
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.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
