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Ethereum Name Service

ENS Labs has announced ENSv2, a significant upgrade to the<a href="https://crypto.news/tag/ens/" rel="noopener noreferrer nofollow"> Ethereum Name Service </a>involving a migration to a Layer 2 network.
The <a href="https://blog.ens.domains/post/ensv2" target="_blank" rel="noopener noreferrer nofollow">proposed </a>ENSv2 aims to improve scalability and reduce gas fees by shifting core functionalities from the Ethereum mainnet to a Layer 2 chain, as stated by ENS Labs. This migration is expected to result in lower transaction fees for users.
ENS Labs has not yet chosen the specific stack or Layer 2 network for the migration. Once selected, this network will become the new platform for user interactions with ENS.
The upgrade also includes a new hierarchical registry system for better management of .eth domain names. This system will provide enhanced capabilities for managing subdomains and configuring resolvers.
“ENSv2 will introduce a hierarchical registry system to .eth name management. Nameholders will have access to a unique name registry, where they will be able to manage subdomains and configure resolvers,” said Nick Johnson, lead developer and founder of ENS Labs, in a statement.
ENS primarily offers the .eth name service, which simplifies the lengthy Ethereum addresses. To date, over two million .eth names have been registered on the mainnet.
The ENSv2 upgrade may enhance multi-chain interoperability, broadening the utility and reach of ENS across various blockchain ecosystems.
ENS Labs cited the release of Ethereum Improvement Proposal <a href="https://crypto.news/ethereum-core-devs-to-discuss-getting-eip-4844-considered-for-inclusion/" rel="noopener noreferrer nofollow">(EIP) 4844</a>, which made Layer 2 networks cheaper through blob transactions, as a key factor in motivating the ENS upgrade.
“The release of EIP4844 has made Layer 2 networks based on Ethereum vastly more affordable and scalable, which was a big driving factor for ENS’s proposal,” said Eskender Abebe, head of product and strategy at ENS Labs.
You might also like: <a href="https://crypto.news/what-is-ens-a-closer-look-at-ethereum-name-service-amid-recent-token-surge/" rel="noopener noreferrer nofollow"> What is Ethereum Name Service? A closer look at ENS amid recent token surge </a>
ENS is the latest among several Layer 1 protocols planning to<a href="https://crypto.news/layer-2-solutions-surge-after-dencun-upgrade-is-it-safe-for-the-system/" rel="noopener noreferrer nofollow"> migrate to Layer 2 networks</a> following the Dencun upgrade, which lowered fees across the Ethereum ecosystem.
The migration to Layer 2 will be phased to minimize disruption. Initial phases will focus on changes to the resolution process to ensure a smooth transition. Users will be able to move their names between the Layer 2 network and the Ethereum mainnet, choosing the optimal balance between cost, security, and functionality.
To support the development and deployment of ENSv2, ENS Labs is seeking additional funding from the ENS DAO. The proposal includes a request for an annual budget increase of 4 million USDC, primarily to cover hiring more developers and infrastructure costs.
Following the announcement, ENS rose over 3% within 2 hours; however, the token was trading <a href="https://coinmarketcap.com/currencies/ethereum-name-service/" target="_blank" rel="noopener noreferrer nofollow">5% lower</a> at the time of writing.
ENS Labs has submitted the proposal to the ENS DAO and is currently evaluating Layer 2 networks for the migration.
Read more: <a href="https://crypto.news/ethereum-name-service-godaddy-partner-domain-names-crypto-wallets/" rel="noopener noreferrer nofollow"> Ethereum Name Service, GoDaddy partner linking domain names with crypto wallets </a>

ENS Labs eyes Layer-2 migration for enhanced scalability and reduced fees

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