- ENS Labs is migrating ENS main functionality to Layer 2 to improve scalability and save on gas expenses.
- ENSv2 will provide lower gas fees, increased control, and improved multi-chain interoperability for.eth domain names.
An important change is about to happen to the Ethereum Name Service (ENS), as ENS Labs suggests growing to Layer 2 (L2) solutions.
With the goal of improving scalability and lowering gas fees, “ENSv2” seeks to present ENS as a more affordable and approachable option for the Web3 community. The forthcoming changes and their ramifications are examined in full here.
ENS Labs proposes to extend the Ethereum Name Service (ENS) to Layer2, and calls this work "ENSv2" to enhance scalability and reduce gas fees. However, ENS Labs has not yet selected a specific stack or Layer 2 network for migration. ENS is Vitalik's most recognized application…
— Wu Blockchain (@WuBlockchain) May 29, 2024
Reimagining ENS: From Core Principles to ENSv2
Reimagining the ENS core architecture from the bottom up is a ground-breaking move by ENS Labs. In addition to migrating the ENS protocol’s core elements to L2, this endeavor also reexamines the design’s guiding principles.
By doing this, ENS aims to further decentralize and welcome new use cases, integrations, and opportunities that the Ethereum mainnet previously restricted.
From its founding in 2017, ENS has developed into a crucial part of the internet’s architecture from a straightforward onchain naming tool. With millions of registered .eth names and thousands of connections to wallets, dapps, TLDs, and browsers, ENS has become an essential link between Web3.
Integrations with trailblazers including Coinbase, GoDaddy, Uniswap, Farcaster, and X.box have shown off its strength and adaptability.
The Advantages of Layer 2 Migration
Faster transaction times and much cheaper gas are features of Layer 2 systems. Naturally, as these L2 technologies develop, more effective platforms attract users and applications. Internal developments from ENS Labs, such the EVM Gateway and CCIP-Read, have put ENS in the vanguard of this technical revolution.
The Ethereum Name Service will drastically lower gas costs and make managing .eth names more affordable by moving registrations and renewals to a Layer 2 network. This update improves the user experience generally by making it quicker and more reasonably priced.
Each .eth name will have a personal register under the hierarchical registry structure that ENSv2 will bring. More ownership and management of names are given to users via this approach, which increases customisation and flexibility.
It will also flow more naturally between different blockchains thanks to ENS on Layer 2. A CCIP-Read Gateway and a compliant resolver working together will improve the interoperability of the Ethereum Name Service by enabling trustless connections across networks.
Market Performance and Future Prospects
CoinMarketCap data indicates that the price of ENS coins is now at $25.99, up 3.97% from the last 24 hours. Comparably, the value of Ether (ETH) is about $3,864.50, up 0.62% in the same time frame and showing a bullish trend of 3.00% over the previous week.
On the other hand, Nate Geraci of ETHNews recently brought up the prospect that the SEC would approve a spot Ethereum ETF in the next few weeks, or maybe two to three months.