- Ethereum Name Service (ENS) Labs has proposed a significant upgrade, ENSv2, to migrate its services to a Layer 2 network.
- This upgrade aims to reduce gas fees and enhance the scalability of the ENS project.
- Vitalik Buterin, co-founder of Ethereum, has praised the initiative, highlighting its potential impact on the crypto ecosystem.
Discover how the ENSv2 upgrade is set to revolutionize Ethereum Name Service by reducing gas fees and improving scalability, as endorsed by Vitalik Buterin.
ENSv2: A Major Upgrade for Ethereum Name Service
ENS Labs has introduced ENSv2, a comprehensive upgrade designed to transition the Ethereum Name Service to a Layer 2 network. This move is expected to significantly reduce gas fees and enhance the scalability of the service. By migrating core functionalities from the Ethereum main-net to a Layer 2 blockchain, ENS aims to offer users lower transaction costs and improved service efficiency. Although ENS Labs has not yet selected a specific Layer 2 network for the transition, the chosen network will serve as the new platform for user interactions with ENS once the migration is complete.
Innovative Features of ENSv2
The ENSv2 upgrade also proposes a new “hierarchical registration system” to manage .eth domain names more effectively. This system will enable domain owners to manage subdomains and configure resolvers more efficiently. Nick Johnson, Chief Developer and Founder of ENS Labs, stated, “ENSv2 will introduce a hierarchical registration system for .eth name management. Domain owners will have access to a unique domain registry where they can manage subdomains and configure resolvers.”
Motivations Behind the ENSv2 Upgrade
ENS primarily provides a simpler alternative to traditional, lengthy Ethereum addresses through its .eth name service. To date, over two million .eth names have been registered on the main-net. The ENSv2 upgrade aims to enhance multi-chain interoperability, thereby expanding ENS’s usage and accessibility across different blockchain ecosystems. ENS Labs has cited the release of Ethereum Improvement Proposal (EIP) 4844 as a significant motivator for the upgrade. This proposal makes Layer 2 networks considerably cheaper through blob transactions. Eskender Abebe, Product and Strategy Manager at ENS Labs, remarked, “The release of EIP4844 has made Ethereum-based Layer 2 networks much more affordable and scalable, which has been a major driving factor for ENS’s proposal.”
Impact on Altcoin Prices
Following the announcement, the price of ENS tokens saw a notable increase. The token surged from $24 to over $28 within a day. As reported by CoinOtag, the market has been relatively stable, making ENS’s performance stand out. At the time of writing, the altcoin was trading at $28.06, reflecting a daily increase of over 8%.
Conclusion
The ENSv2 upgrade represents a significant step forward for the Ethereum Name Service, promising reduced gas fees and enhanced scalability. With the endorsement of key figures like Vitalik Buterin, this upgrade could set a new standard for blockchain-based name services. As the crypto community eagerly awaits further developments, the successful implementation of ENSv2 could pave the way for broader adoption and increased utility of ENS across multiple blockchain ecosystems.
