Ethereum Name Service (ENS) unveiled plans for a comprehensive upgrade late yesterday (28th), announcing the migration of its protocol from the Ethereum mainnet to a Layer 2 network. This strategic shift aims to enhance scalability and reduce transaction fees while introducing innovative domain management features.
Key Benefits of the Layer 2 Migration
Lower Fees and Improved Scalability
ENS emphasized that migrating core functionalities to Layer 2 will significantly cut transaction costs for users. The team is currently evaluating multiple Layer 2 networks but has not yet finalized its choice.
Hierarchical Domain Registration System
A standout feature of ENS v2 is the new hierarchical registration system for .eth domains. Founder Nick Johnson explained:
"Domain holders will access a unique registry to manage subdomains and configure resolvers, streamlining Web3 identity management."
Strategic Partnership: Integration of .box Domains
Last month, ENS partnered with Intercap to integrate .box domains—the first ICANN-approved Top-Level Domain (TLD) on its platform. This collaboration bridges Web2 and Web3, offering:
- Familiarity: Easier adoption for traditional internet users.
- Enhanced Utility: Combines decentralized services with conventional DNS functionality.
- Network Effects: Encourages developer participation and cross-platform identity solutions.
Market Response
Following the announcement, ENS token surged to $28.50** before stabilizing around **$25.94, reflecting a 4.07% 24-hour increase.
FAQ
1. Why is ENS moving to Layer 2?
To reduce gas fees and improve transaction speeds while maintaining security.
2. Which Layer 2 will ENS use?
The team is evaluating options; no decision has been announced.
3. What are .box domains used for?
They serve as Web3 identities for websites, emails, and cross-platform applications.
👉 Explore Web3 domain solutions
This upgrade positions ENS as a leader in blockchain-based naming systems, merging accessibility with decentralized innovation.