Ethereum Name Service Proposes ENSv2 To Tap Into Layer2 Networks

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As an experienced analyst in the blockchain industry, I believe that ENS Labs’ decision to propose the ENSv2 upgrade to migrate Ethereum Name Service (ENS) to a Layer 2 network is a strategic move that aligns with the current trend and growth of these networks. The significant increase in adoption and value locked on Ethereum Layer 2 networks, which now stand at an impressive $47.26 billion, indicates the potential benefits for users and developers.

At the core of Ethereum Name Service (ENS) is the non-profit entity, ENS Labs. They’ve put forth a proposal for an upgrade named ENSv2, which aims to streamline the transition of the ENS protocol into a Layer 2 network.

As a researcher studying the blockchain ecosystem, I’ve observed a noteworthy surge in the adoption of Ethereum Layer 2 networks. The worth of assets residing in these networks has hit an unprecedented peak.

The ENSv2 Proposal 

As a crypto investor, I’m excited about the recent announcement from ENS Labs regarding their proposed update on X. According to their statement, this proposal is designed to significantly improve the Ethereum Name Service (ENS) protocol. Specifically, it intends to introduce a hierarchical registry system that will make managing and customizing .eth domain names more efficient and effective for users.

“ENS Labs unveils ENSv2: A New Era for Ethereum Name Service

As an analyst, I would describe ENSv2 as follows: I will spearhead the extension of the Ethereum Name Service (ENS) to a future layer 2 network, providing benefits for both users and developers. This transition will lead to reduced costs, quicker transactions, and advanced functionalities, making it an attractive option for all involved parties. For ENS users, this means accessing improved scalability, lower gas fees, and swifter transactions. Meanwhile, developers stand to gain from a revamped registry design, infrastructural enhancements, and multi-chain interoperability, offering them greater flexibility in their projects.

For some time now, we’ve kept a close eye on the development of the L2 ecosystem while simultaneously working on our own internal advancements like CCIP-Read and the EVM Gateway. We’re confident that the current moment presents an ideal opportunity for us to initiate transferring certain aspects of ENS, such as .eth name registrations, to Layer 2.

Why The Switch? 

Transactions on Layer 2 networks can be processed outside of the Ethereum mainnet yet maintain data consistency. This results in quicker transaction times and reduced gas fees. The implementation of ENS (ETH Name Service) in Layer 2 will make it more accessible, enabling new possibilities for interactions. The transition to Layer 2 will occur gradually to minimize any potential disruptions. The early stages involve introducing a new Universal Router Interface and implementing new registry contracts on both Layer 1 and Layer 2. Eventually, users can migrate their names to Layer 2 for faster transactions and lower costs. However, it’s essential to mention that the migration is optional, allowing users to continue using Layer 1 if they prefer.

Burgeoning Layer2 Ecosystem 

Layer 2 networks have experienced significant expansion recently, with data indicating that the combined value of assets secured on these Ethereum-linked networks has soared to an astounding $47.26 billion. This represents a substantial 15% increase within the past week. Three notable Layer 2 networks are Arbitrum, OP Mainnet, and Base, which hold TVLs (Total Value Locked) of $19.3 billion, $7.88 billion, and $6.94 billion respectively. Other prominent players in this space include Mantle, Starknet, Linea, and Blast.

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2024-05-29 12:09