ENS Labs Launches Namechain L2 Solution to Cut Ethereum Gas Fees and Boost Scalability

ENS Labs, the organization behind Ethereum Name Service (ENS), has revealed a Layer-2 solution to boost the scalability of blockchain-based identities.

ENS Labs, the organization behind the Ethereum Name Service (ENS), has unveiled a Layer-2 solution to boost the scalability of blockchain-based identities.

After months of development, the announcement was made on November 11 at the “frENSday” conference in Bangkok.

ENS Launches Namechain to Reduce Ethereum Gas Fees

Earlier this year, ENS Labs touted the ENSv2 upgrade as a solution to rising transaction costs and scalability limitations on Ethereum. Since launching in 2017, ENS has made Ethereum use more user-friendly by mapping complex addresses to readable names. “Vitalik.eth,” the ENS address of Ethereum co-founder Vitalik Buterin, is one example of a readable name.

“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 see new opportunities for ENS and Ethereum flourish,” ENS stated on TechCrunch.

However, the need for lower costs and faster processing has grown in parallel with the expanding Ethereum network. To handle these increasing demands, ENSv2 implemented a hierarchical registry system, which allows users to manage subdomains more efficiently and set up custom resolvers.

Now, Namechain builds on these ENSv2 revisions by utilizing rollup technology to reduce gas fees and streamline the name registration process. Working in tandem with ENSv2, Namechain is designed to make managing blockchain identities more inexpensive and user-friendly.

Before opting to build their own solution, ENS Labs evaluated several Layer-2 options, including Matter Labs’ ZK Stack. Ultimately, the organization decided to build its own in-house solution, driven by the need for a seamless user experience.

The recent release of EIP4844 also made Ethereum-based L2 solutions more scalable and cost-effective. To minimize potential disruptions, ENS Labs will adopt a phased migration approach, starting with changes to the resolution process.

“Big moves for ENS! Namechain is set to redefine user experience with reduced costs and faster performance. Can’t wait to see the impact this will have on the ENS ecosystem and beyond,” said one TechCrunch user.

This plan gives users flexibility, allowing them to choose whether to keep their ENS names on the Layer-2 network or the Ethereum mainnet. To support the rollout of ENSv2 and Namechain, ENS Labs has asked for an annual budget of 4 million USDC from the ENS DAO.

ENS has been expanding its use cases recently. In September, it added integrations with PayPal and Venmo, enabling crypto transfers for over 270 million US users.

In reaction to the news, ENS token prices increased slightly, trading at $26.28. This layer 2 migration enhances ENS’s standing within the Ethereum ecosystem, providing developers with greater registry flexibility and giving users an affordable, high-performance experience.