A leading blockchain-based identity solution provider, Ethereum Name Service (ENS), has revealed plans to launch a dedicated layer-2 network — Namechain — by the end of next year. In the case of Namechain, we’ll be using zero-knowledge rollups, a blockchain scaling technology that accelerates transactions and dramatically reduces fees. The ENS Labs company behind ENS has confirmed this move gives users security based on Ethereum while lowering costs and improving efficiency.
Ethereum’s ENS Enhances Security with Namechain Rollout
The Namechain will use zero-knowledge rollups (zk-rollups) to efficiently and cost-effectively process transactions on the main Ethereum network. This technology compresses published data on-chain, reducing users’ transaction costs and alleviating congestion on Ethereum. By benefiting from this setup, ENS Labs aims to maintain Ethereum’s security features while reducing the cost of users managing a blockchain identity.
ENS Labs Chief Operating Officer Katherine Wu told CoinDesk that Namechain will then use the infrastructure of an existing Ethereum-compatible zkEVM (zero knowledge Ethereum Virtual Machine), providing full integration with Ethereum’s decentralized ecosystem. The team makes final decisions on the zkEVM provider to ensure smooth compatibility and the best performance. Cautioned by the long and complex path of zkEVM development, ENS Labs builds on the established zkEVM platform to fast-track development and ensure robustness and compatibility with the ENS framework.
ENS Labs Ensures Smooth Shift to Layer 2
Alongside the ENS logs launch, ENS Labs is about to roll out ENSv2, a complete rewrite of the current ENS protocol running on Ethereum’s leading network. In ENSv2, the protocol’s registry system will be rebuilt from scratch, and the architecture will be distributed across layer 2 with an eye toward greater efficiency. This update is a significant new move for ENS, which is looking for a greater reach through more accessible gas fees while keeping that user experience pleasant and smooth.
ENS Labs aims for backward compatibility with the current ENSv1 setup on Ethereum’s mainnet so previous ENS users continue to use ENS without any disruption. On Namechain, a different architecture will underlie ENS services, according to Wu, but the downside for users will be the reduced transaction costs experienced when accessing ENS services on Namechain. The commitment to a smooth transition to layer 2 is evidence of ENS Labs’ desire for user experience and technical stability as it grows into l2.
This shift to layer 2 aligns with how ENS has kept up with emerging blockchain trends, with numerous big organizations launching layer 2 networks. Crypto exchange Kraken, Sony’s Blockchain Labs, and decentralized finance project Uniswap recently confirmed their layer-2 blockchains. However, these firms are opting for Optimism’s OP Stack technology rather than for zk-rollups, as ENS Labs do.
Namechain Launch to Boost ENS Usability and Reach
ENS Labs launch of Namechain is a strategic step towards scaling blockchain identity with ENS, which cannot be done with traditional domain name services. The Ethereum Name Service (ENS) makes it easy to get a human-readable name for your Ethereum address, which makes it easier for your colleagues at your company to send your cryptocurrency. Namechain helps to reduce costs and improve usability to draw more users to blockchain-based identity systems such as ENS.
ENS Labs co-founder and lead developer Nick Johnson was optimistic that Namechain could scale ENS and open up new applications. However, the team believes that it can further unlock more excellent utility for developers and end users by extending ENS functionality onto a layer 2 network, facilitating more exciting applications. This also puts ENS Labs in a position to take on a more significant role within the broader blockchain and Web3 landscape as Namechain is launched.
This move to layer 2 reflects an industry focus on making blockchain easier, faster, and more accessible. ENS Labs intends to continue modifying its platform as the protocol matures and surmounting the limits of what possible decentralized identity systems can provide. The shift to Namechain might be a paradigm shift when it comes to blockchain technology and a leap forward for ENS Labs’ decentralized identity solutions.
