ENSv2 Upgrade Moves Ethereum Name Service to Layer-2

As an experienced analyst, I see great potential in Ethereum Name Service (ENS) upgrading to Layer-2 networks with ENSv2. The scalability and cost reduction benefits are crucial for the long-term growth of this essential decentralized infrastructure.

The Ethereum Name Service (ENS) is undergoing an update to shift its operations to a Layer-2 network. With the proposed upgrade named ENSv2, the goal is to improve scalability and lessen gas fees by relocating essential functions from the Etherean mainnet to a Layer-2 platform.

ENSv2 introduces a registry system for overseeing .eth domain names. As explained by Nick Johnson, the Lead Developer and Founder of ENS Labs, “Domain registrants will have the power to manage their own unique registries, enabling them to control subdomains and set up resolvers.”

In order to minimize disruption during the shift to Layer 2, the transition will be carried out in several stages. The early phases will primarily involve modifications to the resolution process, ensuring a hassle-free transfer. Initially, this process will be adjusted to guarantee a flawless migration. Users will subsequently move their identities between the Layer-2 network and Ethereum’s mainnet, enabling them to select the most cost-effective, secure, and functional solution for their needs.

As a researcher studying the developments within the Ethereum Name Service (ENS) ecosystem, I’d like to share some recent updates. ENS Labs, the team behind ENSv2, has announced their intention to request additional funding from the ENS Decentralized Autonomous Organization (DAO). The proposed budget increase totals $4 million on an annual basis. This announcement led to a positive response in the market, resulting in a 2.95% price surge for the ENS token. At the time of writing, the ENS token is trading at $25.84.

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2024-05-29 01:24