Ethereum Name Service Plans to Launch Its Own Layer 2 Network
The new Layer 2 network aims to make the ENS project more decentralized and open to new use cases and connections, solving the issues previously caused by the Ethereum mainnet.
Ethereum Name Service (ENS) has announced plans to launch its own Layer 2 network called Namechain. This new network aims to improve blockchain identity services while maintaining the decentralization and security that ENS users rely on.
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ENS, or Ethereum Name Service, is a decentralized domain name system built on the Ethereum blockchain. It functions similarly to the traditional Domain Name System (DNS), which translates IP addresses into human-readable domain names. However, ENS maps human-friendly names like “vitalik.eth” to Ethereum addresses, making it easier for users to send and receive cryptocurrency and interact with decentralized applications.
Originally a small project on Ethereum, ENS has grown remarkably, with millions of .eth names registered and thousands of integrations, including with dApps, wallets, and browsers. While the project established its success on the Ethereum mainnet, the team believes that transitioning to a Layer 2 chain will offer numerous advantages.
One of the primary benefits of this transition is the substantial reduction in gas fees, making it more economical for users to manage .eth names. This upgrade not only enhances the affordability of ENS but also increases its speed. Furthermore, having a dedicated chain provides the team with greater control and customization options for the protocol. With ENS on Layer 2, .eth names will integrate more seamlessly across various Layer 2 blockchains, aligning perfectly with the Ethereum scaling roadmap, which envisions Layer 2 solutions playing a crucial role.
Reports suggest Namechain will be a zk layer-2 solution, utilizing zero-knowledge proofs to submit data to the Ethereum mainnet. The team is in the final stages of selecting which zkEVM to employ.
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Zero-knowledge proofs are considered more efficient than optimistic rollups because they offer quicker finality and stronger security guarantees by requiring cryptographic proof rather than a challenge period for transaction verification, thereby reducing the risk of fraud.
However, the journey to Layer 2 for ENS won’t be swift. Currently, it's only in the planning stage, with a potential launch anticipated around the end of 2025. On top of this, transitioning the existing infrastructure to the new chain will require time. The project will also need to establish infrastructure to facilitate seamless connections between the Ethereum mainnet and Layer 2s, as the mainnet will continue to see significant usage in the medium term.
ENS’s decision to proceed with the Layer 2 chain comes on the back of several major crypto firms announcing their own Layer 2 projects, including Uniswap, Kraken, Yuga Labs, and others. This trend will likely help ENS to build more integrations within the Layer 2 space.
Overall, the ENS community has reacted positively to the announcement, with the ENS token enjoying an increase of over 30% following the news, as per data from Coingecko.
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