Ethereum Name Service Announces Layer 2 Shift to Cut Fees and Enhance .eth Domain Capabilities

ens ethereum
Table of Contents


  • Ethereum Name Service (ENS) will migrate to Layer 2 to reduce costs and improve scalability while maintaining ETH security.
  • The new design will include a hierarchical registry system and an updated Universal Resolver to optimize user experience.
  • The migration process will be carried out in phases, designed to minimize disruption to current services.

Ethereum Name Service (ENS) continues to work on improving its platform. With the announcement of its V2 iteration, known as ENSv2, it will revolutionize the management of .eth domains by migrating to a Layer 2 solution, a strategic move aimed at reducing operational costs, improving scalability, and expanding usage capabilities.

ENS has been an essential tool in the Ethereum ecosystem since its launch in 2017, providing a decentralized, secure, and user-friendly way for users to manage domain names on the blockchain. Over the years, the service has seen remarkable growth, with millions of domains registered and key partnerships with important companies such as Coinbase, GoDaddy, and Uniswap. However, the increasing cost of transactions and scalability limitations on the main network have been a constant challenge for its adoption and continuous functionality.

In response to these complications, ENSv2 will migrate to a Layer 2 network, a solution that allows maintaining Ethereum’s security while reducing transaction costs and improving efficiency. The transition will lower the costs associated with domain registration and renewal, and also provide greater flexibility and control for users over their .eth domains.

The organization behind the protocol has been researching various Layer 2 options, including the possibility of developing a custom network. This decision will be based on an evaluation framework that prioritizes EVM compatibility, censorship resistance, and the availability of critical infrastructure under open-source licenses.

ethereum ens

Ethereum Name Service Needs 4 Million USDC

The new design of ENSv2 includes a hierarchical registry system where each domain name will have its own personal registry responsible for managing subdomains and resolutions. Additionally, an updated Universal Resolver will be implemented to optimize the resolution process and improve the experience for both users and developers.

This structure will allow users to move their domains between the Ethereum mainnet and Layer 2 according to their specific needs in terms of cost, security, and functionality. It is important to note that the migration will be optional, allowing users to keep their names on the mainnet if they prefer.

To facilitate this important evolution process, ENS Labs has requested an annual budget increase of 4 million USDC from the ENS DAO. The funds will be allocated to hiring additional developers and covering infrastructure costs associated with the development and deployment of V2 on Layer 2. Adequate funding is crucial to ensure that ENS can carry out this transition effectively and timely, guaranteeing the continuity of the service while incorporating new functionalities.

The migration process will be conducted in phases, designed to minimize disruption to current services. The initial phases will focus on changes to the resolution process, laying the groundwork for more profound modifications that will come later. Existing domains will continue to function without interruption, although they will not be able to take full advantage of the new functionalities of ENSv2 without migrating to Layer 2.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews