Originally published on: November 11, 2024
The recent unveiling of ENS Labs’ Ethereum layer-2 solution, known as “Namechain,” has caused a significant uptick in the value of the Ethereum Name Service (ENS) token, with a rise of over 10%.
During a presentation at the “frENSday” conference held in Bangkok, ENS Labs introduced Namechain as a custom-built Ethereum layer-2 solution designed to enhance blockchain identity scalability. The primary goal of Namechain is to simplify the name registration process at a reduced cost through rollups.
According to executives at ENS Labs, Namechain will operate alongside “ENSv2,” a protocol that facilitated ENS’s expansion to Ethereum L2s. Greg Skril, ENS Labs developer relations lead, emphasized that with ENSv2 and Namechain, registering names, updating records, managing decentralized websites, and more will be significantly streamlined.
ENS serves as a blockchain solution akin to traditional top-level domains such as “.com” and “.org” within the Domain Name System, offering a more user-friendly alternative to numerical IP addresses on the internet.
A notable proponent of ENS is Ethereum co-founder Vitalik Buterin, who employs an Ethereum address searchable via the “Vitalik.eth” domain in an Ethereum block explorer.
Following the announcement of Namechain, the ENS token experienced a 10.8% spike, reaching $21.56 from $19.46 within just 30 minutes. Despite this surge, the token’s value later dipped below the pre-announcement level to $19.22.
Jeff Lau, a developer at ENS Labs, emphasized that the ENS domain “.eth” will remain anchored on the Ethereum mainnet, with support for ENS also planned across other Ethereum layer 2 solutions.
The decision to establish an Ethereum layer 2 solution was driven by ENS Labs’ commitment to creating a user-friendly experience for its platform. This choice contrasts with integrating the solution into another blockchain network.
In a previous interview with Cointelegraph, ENS Labs expressed a strong focus on exploring options for developing its Ethereum layer 2 solution. The team hinted at a partnership with a major industry player to aid in the expansion but kept details confidential.
In an effort to expand its reach, ENS integrated its name service protocol with popular payment platforms like PayPal and Venmo for crypto transactions. This integration is expected to introduce ENS services to over 270 million users in the United States.
As ENS continues to enhance its infrastructure and offerings, the future appears bright for this innovative blockchain naming service.
