Ethereum Name Service proposes ENSv2 upgrade to tap into booming layer 2 networks Ethereum Name Service proposes ENSv2 upgrade to tap into booming layer 2 networks
Ethereum layer2 networks are enjoying a period of high adoption and a record TVL.
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Updated: May. 28, 2024 at 4:35 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
ENS Labs, a non-profit organization responsible for the Ethereum Name Service (ENS), has proposed an ENSv2 upgrade that would facilitate the protocol’s migration into a layer 2 network, according to a May 28 statement shared with CryptoSlate.
ENS’s move is exciting for Ethereum layer-2 networks, which have recently seen increased adoption, and the total value of assets locked on them reach a new all-time high.
ENSv2
According to ENS, the ENSv2 proposal aims to overhaul the protocol with a hierarchical registry to enhance the management and customization of .eth domain names.
This upgrade includes migrating ENS’ core functions from Ethereum Layer 1 to a Layer 2 network. This change will benefit both users and developers by improving functionality and usability.
Consequently, ENS users will enjoy increased scalability, lower gas fees, and faster transaction speeds. Developers will also gain more flexibility with the new registry design and other infrastructural enhancements. The upgrade is also set to enable multi-chain interoperability.
However, the protocol failed to name the Layer 2 network to which it would migrate. Nonetheless, ENS elaborated on social media:
“We’ve long been monitoring the state of the L2 ecosystem while also contributing with internal innovations such as CCIP-Read and the EVM Gateway. We believe that now is the right time for us to begin moving parts of ENS, such as .eth name registration, to L2.”
Layer2 networks grow
According to L2Beat data, the total value of assets locked on Ethereum layer 2 networks has surged to a record $47.26 billion, marking a 15% increase in the past week.
Arbitrum leads the pack with a total value locked (TVL) of $19.3 billion. Following closely is OP Mainnet with $7.88 billion in TVL, while Coinbase-backed Base ranks third with $6.94 billion. Other blockchains with TVLs exceeding $1 billion include Blast, Mantle, Linea, and Starknet.
Experts attribute this milestone to renewed investor confidence in Ethereum’s ecosystem and the high adoption rates of these networks. Additionally, the recent ETH price increases, fueled by the approval of the ETH ETF, have also contributed to the rise in TVL.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Ethereum Name Service (ENS) offers a secure and decentralised way to address resources both on and off the blockchain using simple, human-readable names.