The Ethereum Name Service (ENS) is upgrading to move the service to a Layer-2 network. ENSv2, the proposed upgrade, aims to enhance scalability and reduce gas fees by transferring core functionalities from the Ethereum mainnet to a Layer-2 chain.
ENSv2 brings a registry system for managing .eth domain names. According to Nick Johnson, the Lead Developer and Founder of ENS Labs, “Nameholders will have access to a unique name registry, where they will be able to manage subdomains and configure resolvers.”
The migration to Layer 2 will occur in phases to minimize disruption. Initial phases will focus on changes to the resolution process, ensuring a smooth transition. The first stages will update the resolution process to ensure a seamless transition. Users will move their names between the Layer-2 network and the Ethereum mainnet, allowing them to choose the optimal balance between cost, security, and functionality.
To support the development and deployment of ENSv2, ENS Labs seeks additional funding from the ENS DAO, including an annual budget increase of $ 4 million. Following the news, the ENS token experienced a 2.95 % rise, trading at $25.84 at the time of writing.
Also read: Ethereum Name Service Announces New Points System
