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Ethereum Name Service Proposes ENSv2 To Tap Into Layer2 Networks

Ethereum Name Service Proposes ENSv2 To Tap Into Layer2 Networks

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ENS Labs, a non-profit organization at the heart of the Ethereum Name Service (ENS), has proposed the ENSv2 upgrade to facilitate the protocol’s migration into a Layer2 network. 

Ethereum Layer2 networks have seen a significant increase in adoption, with the total value of assets on these networks also reaching an all-time high. 

The ENSv2 Proposal 

ENS Labs announced the proposal on X, stating that the proposal aims to overhaul the protocol and introduce a hierarchical registry that would enhance the management and customization of .eth domain names. 

“Introducing ENSv2: The Next Generation of ENS ENS Labs is excited to announce our proposal to extend the ENS protocol to a Layer 2 network. This move isn’t just about migrating parts of the protocol; we’re re-envisioning the architecture from the ground up!”

ENSv2 would extend the ENS to a yet-to-be-selected layer2 network, facilitating lower costs, faster transactions, and enhanced functionalities, benefiting both users and developers. ENS users will also be able to access better scalability, lower gas fees, and faster transactions. At the same time, developers will be able to achieve greater flexibility thanks to a new registry design and other infrastructural enhancements, along with multi-chain interoperability. 

“We’ve long been monitoring the state of the L2 ecosystem while also contributing with internal innovations such as CCIP-Read and the EVM Gateway. We believe that now is the right time for us to begin moving parts of ENS, such as .eth name registration, to L2.”

Why The Switch? 

Layer2 networks can execute transactions off-chain while ensuring the data integrity on the Ethereum mainnet. This leads to significantly faster transactions at lower gas fees. Moving to a Layer2 network will also make ENS more accessible and facilitate new interactions. The migration will be executed in a phased manner to minimize disruptions. The initial phase will see the deployment of a new Universal Router Interface, followed by the deployment of new registry contracts on Layer1 and Layer2. Users will eventually be able to migrate their names to Layer2 and benefit from faster transactions and lower costs. However, it’s important to note that migration is optional, and users can choose to stay on Layer1 if they prefer. 

Burgeoning Layer2 Ecosystem 

Layer2 networks have seen a spurt in growth, with data showing that the total value of assets locked on Ethereum Layer2 networks has rocketed to a staggering $47.26 billion. This figure represents a 15% increase in just over a week. Among the leading Layer2 networks is Arbitrum, with a TVL (total value locked) of $19.3 billion. Arbitrum is closely followed by OP Mainnet, with a TVL of $7.88 billion. Base, backed by Coinbase, is next on the list with a TVL of $6.94 billion. Other prominent Layer2s include Mantle, Starknet, Linea, and Blast.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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