Highlights:
- ENS Labs announces Namechain, a layer 2 solution targeted at reducing cost and improving transaction speeds on Ethereum.
- Namechain, built on top of zero-knowledge rollups, offers security at lower fees and faster finality than layer 1 networks.
- Launching by 2025, Namechain aligns with ENSv2, interoperability and seamless Ethereum-based naming services.
ENS Labs, the organization behind Ethereum Name Service (ENS), plans to launch Namechain. It’s their own Layer 2 network, with plans for late 2025. Namechain aims to enhance ENS by lowering cost, improving scalability, and enabling interoperability across L2 networks.
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Namechain will carry out transactions off the Ethereum mainnet using zero-knowledge proof technology (zkEVM). Hence, it maintains Ethereum’s security while significantly reducing fees and faster execution.
Announced live at #frENSday🎤
Namechain by @ensdomains , a purpose-built Layer 2 solution!
This is the next evolution in ENS and part of the larger ENSv2 direction. By dramatically reducing costs, improving performance, and providing a familiar Ethereum developer experience our… pic.twitter.com/bIwHa22vJL
— ens.eth (@ensdomains) November 11, 2024
Namechain to Lower Barriers with Interoperability
Namechain’s prime intention is to help users start their ENS journey on any Layer 2 network. Additionally, the protocol also plans to add L2 to L2 bridging. This will help Layer 2 solutions interact seamlessly, enhancing interoperability.
Jeff Lau, co-founder of ENS Labs, stated that Namechain will cut name registration and management costs by up to 99% compared to layer 1 fees. Furthermore, it aims to make registration easier by making it more accessible. He noted that because ENS already has users, they can prioritize other aspects beyond TVL.
Namechain is part of ENSv2, which was launched in May to allow ENS to spread to Layer 2 networks. ENSv2 aims to make the service more flexible and affordable, addressing Ethereum’s scalability and cost problems. By adding ENS to Layer 2, ENS seeks to resolve these issues and offer faster and cheaper Layer 2 services without compromising security.
During the transition, Katherine Wu, COO of ENS Labs, emphasized maintaining compatibility with ENSv1. Users should see no changes to the interface, except for lower gas fees with Namechain, ‘ she noted. She explained that the technical challenge lies in ensuring backward compatibility from day one of the launch.
🔊 Announcing:
Namechain by @ensdomains, a purpose-built Layer 2 solution. This is the next evolution in ENS and part of the larger ENSv2 direction.
By dramatically reducing costs, improving performance, and providing a familiar Ethereum developer experience our hope is to… https://t.co/HdLRfRZjsg pic.twitter.com/U7Z6CZV8rR
— Katherine Wu (@katherineykwu) November 11, 2024
Control Over the Entire Stack
To maintain complete control of the stack, protocol, and governance, ENS Labs decided to build its own Layer 2 network. This may improve the integration of user experience features. However, user experience would be harder to build directly into the protocol if it were to be deployed onto another public chain. The team has selected its Layer 2 partners but hasn’t disclosed them.
ENS Labs co-founder Nick Johnson commented that Namechain is the next phase for ENS. He believes it will bring substantial improvements in scalability and cost efficiency. In addition, it will unlock new application prospects within the Ethereum ecosystem. He expressed excitement about how these enhancements will enable new applications.
The move follows a larger trend whereby big projects choose to create proprietary Layer 2 solutions to solve cost and scalability issues. Other initiatives as Uniswap and Kraken have also revealed their own roll-up networks. But unlike others employing Optimism’s OP Stack, ENS Labs emphasizes zero knowledge roll-ups for constant security and efficiency.
Emphasizing interoperability and user experience, Namechain seeks to reduce entrance barriers for new users. Furthermore emphasized in the project is ENS Labs’ dedication to preserving its distributed character while improving accessibility and cost.
Among its goals are fast transaction finality on zkEVM, open-source software, and maintaining the distributed character of the ENS. However, it is expected to handle transactions more effectively, hence enhancing user experience.
ENS Integrates with PayPal and Venmo for Crypto Transfers
In September, ENS Labs announced the integration of its Ethereum Name Service with PayPal and Venmo. This integration allows U.S. users to transfer cryptocurrency using ENS names instead of long wallet addresses. By entering an ENS name in the search field, PayPal and Venmo will automatically identify linked wallet addresses. This update reduces transaction errors and simplifies wallet management.
JUST IN : ENS Labs announced that Paypal and Venmo have integrated ENS into their payment platforms. When sending cryptocurrency, US users of Paypal and Venmo can directly enter the recipient's ENS name, and the payment platform will automatically identify the wallet address…
— Crypto News Updates (@CryptoNewsUpd8s) September 11, 2024
ENS Labs noted the integration will reach over 270 million U.S. users. Before this, users needed to type, paste, or scan external wallet addresses for transfers. ENS now manages over 2 million on-chain and 4 million off-chain registered names.
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