ENS Labs, the company behind Ethereum Name Services (ENS), has proposed upgrading the protocol to a Layer 2 network to enhance accessibility and efficiency. The company announced Tuesday that the move aims to improve speed and make transactions cheaper. ENS stores blockchain addresses as easily identifiable names.
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In a blog post, the company said its proposal, dubbed ‘ENSv2’, will introduce new features that will help improve the Ethereum-based naming tool. ENS Labs plans to carry out the exercise in phases to limit disruption to decentralized applications (dApps) that are running on the protocol.
ENS Labs Expects to Improve Efficiency
According to ENS Labs founder and developer Nick Johnson, the project will ensure that username registrations occur at increased speed and lower transaction costs, making it easier to manage the .eth domain names.
“ENSv2 will introduce a hierarchical registry system to .eth name management,” Johnson said.
“Nameholders will have access to a unique name registry, where they will be able to manage subdomains and configure resolvers.”
Nick Johnson.
The firm highlighted a past study of L2 networks and how they influenced the decision to migrate the service. The upgrade will focus on moving the major parts of the protocol from the Ethereum mainnet to the L2 network.
Introducing ENSv2: The Next Generation of ENS 🎉🎉🎉
ENS Labs is excited to announce our proposal to extend the ENS protocol to a Layer 2 network. This move isn't just about migrating parts of the protocol; we're re-envisioning the architecture from the ground up! pic.twitter.com/3xM6owTpKk
— ens.eth (@ensdomains) May 28, 2024
“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,” explained ENS Labs in a post on X.
He continued, saying, “Beyond the benefits of reduced gas fees and increased transaction speeds, extending ENS to use an L2 opens doors for us to re-architect ENS based on the last 7 years of our experience building at the frontier.”
ENS Labs Solicits for Feedback
Additionally, ENS DAO proposed to the community to deliberate on whether the company is committing to the right decision. They also solicited feedback on the proposed migration method they should take.
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ENS Labs has not yet decided whether to opt for an existing layer 2 network to migrate or develop its own custom network. The proposal also seeks supplementary funding from the DAO to support the initiatives.
“In the coming weeks, we will put forward an executable proposal to request an annual budget increase of 4 million USDC, which will be primarily allocated to hiring additional developers covering infrastructure costs related to L2 development and deployment,” added ENS Labs in the proposal.
Cryptopolitan reporting by Enacy Mapakame
