ENS Labs proposes Layer 2 upgrade to promote wider accessibility

Source Fxstreet
May 28, 2024 19:23
  • ENSv2 will see .eth username registration move to Layer 2 due to high transaction speed and lower fees.
  • Ethereum username protocol joins list of protocols switching to Layer 2 networks.
  • ENS price is up over 3% since the announcement.

Ethereum Name Service (ENS) announced a proposal on Tuesday to extend the protocol to Layer 2 networks. According to the announcement, the aim is to re-envision the protocol architecture, boost speed and facilitate low-cost transactions.

Also read: New whale wallets are buying these five altcoins on Ethereum: ENS, UNI, AAVE, LDO, LINK

ENS to launch in Layer 2 networks

ENS is an Ethereum-based naming protocol that stores blockchain addresses as easily identifiable names. The project plans to extend its protocol to Layer 2 networks, enabling username registrations to attain new speeds and enjoy low fees.

ENS Labs, the organization behind ENS, released the plans on social media, highlighting their previous study of Layer 2 networks and the latest resolve to move parts of the protocol, specifically the .eth name registration.

"We've long been monitoring the state of the L2 ecosystem. We believe that now is the right time for us to begin moving parts of ENS, such as .eth name registration, to L2," said ENS Labs in an X post.

Read more: Alleged Caitlyn JENNER token sparks debate following claims of account hack

According to an ENS blog post, the proposal, named ENSv2, aims not just to add transactional speed and low gas fees but also to revamp the entire system, ranging from enhanced customization and control to improved multi-chain interoperability.

"We're formally proposing the extension of the ENS protocol to an L2 and a new hierarchical registry design for ENS, where each name has its own personal registry responsible for managing subdomains and resolvers," said Nick Johnson, founder of ENS.

ENS is the latest in a growing trend of Layer 1 protocols that have stated their intentions of migrating to Layer 2 networks following the Dencun upgrade, which reduced fees across the Ethereum ecosystem.

Also read: Ethereum may shoot past $4,000 as Michael Saylor believes spot ETH ETF will help Bitcoin

ENS is up over 3% following the announcement and may continue to rise as its team furthers its plans to upgrade the protocol's entire architecture.

ENS Labs has forwarded the proposal to the ENS DAO and is currently evaluating Layer 2 networks for the migration.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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