Ethereum Name Service proposes migration to Layer 2

ENS +5.82% Labs has proposed ENSv2, a comprehensive upgrade to the Ethereum Name Service that involves migrating the service to a Layer 2 network.

ENSv2 aims to enhance scalability and decrease gas fees by transferring core functionalities from the Ethereum mainnet to a Layer 2 chain, according to ENS Labs.

If the proposal is accepted, users will benefit from reduced transaction fees.

ENS Labs has yet to select the specific stack or Layer 2 network for the migration. However, this network will serve as the new platform for user interactions with ENS once the migration is complete.

The upgrade also proposes a new “hierarchical registry system” for more effective management of .eth domain names, which includes capabilities for managing subdomains and configuring resolvers.

“ENSv2 will introduce a hierarchical registry system to .eth name management. Nameholders will have access to a unique name registry, where they will be able to manage subdomains and configure resolvers,” said Nick Johnson, Lead Developer and Founder of ENS Labs.

ENS primarily provides the .eth name service, a simpler alternative to traditional, lengthy Ethereum addresses. To date, over two million .eth names have been registered on the mainnet.

The ENSv2 upgrade may improve multi-chain interoperability, extending the utility and reach of ENS across different blockchain ecosystems.

ENS Labs explained that the release of Ethereum Improvement Proposal (EIP) 4844, which made Layer 2 networks significantly cheaper via blob transactions, was an important factor motivating the ENS upgrade. “The release of EIP4844 has made Layer 2 networks based on Ethereum vastly more affordable and scalable, which was a big driving factor for ENS’s proposal,” said Eskender Abebe, Head of Product and Strategy at ENS Labs.