ENS Labs Unveils Layer-2 “Namechain”

ENS Labs, the company behind the Ethereum Name Service (ENS), is moving forward with plans to launch its own layer-2 network, Namechain. This network, anticipated to go live by the end of 2025, is designed to offer cheaper and faster transactions using zero-knowledge (ZK) rollup technology. By shifting ENS activity to a layer-2 network, ENS Labs aims to cut transaction costs while maintaining Ethereum-level security.

Namechain, according to ENS Labs’ Chief Operating Officer Katherine Wu, will utilize ZK rollups to reduce the data load on Ethereum’s mainnet. This approach compresses the amount of data published on-chain, offering faster and cheaper transactions without compromising security. “This technology allows Namechain to process and execute transactions off of the main Ethereum network while still inheriting the full security of Ethereum, but at a fraction of the cost,” ENS Labs said in a press release.

The ENS Evolution: A Shift to Layer-2

ENS, often referred to as blockchain’s answer to the web’s Domain Name Service (DNS), makes crypto wallet addresses more user-friendly. Rather than using long and complex addresses, ENS allows users to register human-readable names like “Vitalik.eth,” which is much easier to remember than an address like 0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045. ENS Labs’ upcoming Namechain aims to improve this functionality by creating a layer-2 network with more efficient and affordable transactions.

The journey to Namechain started in May when ENS Labs first proposed ENSv2—a complete overhaul of the ENS registry system. ENSv2 will be backward compatible with the current ENS protocol, ensuring a smooth transition for existing users. According to Wu, users won’t notice any differences on the front end, apart from significantly lower gas fees.

This transition is part of a larger trend in the crypto industry, with various platforms moving to layer-2 solutions to scale their services. ENS Labs’ decision to go with ZK rollup technology contrasts with others like Uniswap and Kraken, which have chosen Optimism’s OP Stack for their layer-2 networks.

Why ZK Rollups for Namechain?

Zero-knowledge rollups (ZK rollups) offer a unique solution to the challenges of scaling by compressing data before it is added to the blockchain. This not only reduces the amount of information that has to be stored but also speeds up transactions and lowers gas fees. Unlike other layer-2 technologies, ZK rollups ensure data integrity while significantly boosting efficiency.

The infrastructure of Namechain will be based on an existing zero-knowledge Ethereum Virtual Machine (zkEVM), with ENS Labs currently finalizing the choice of which zkEVM to adopt. This setup will allow Namechain to be both secure and scalable, positioning it as a cutting-edge solution within the Ethereum ecosystem.

An Industry Shift Toward Layer-2 Networks

ENS Labs isn’t alone in moving to a layer-2 setup. A number of major crypto firms, including Uniswap, Kraken, and Sony’s Blockchain Labs, have recently announced their own rollup projects. These projects aim to address scaling issues that plague the Ethereum mainnet, providing users with faster, cheaper transactions. However, while ENS Labs has chosen ZK rollups for Namechain, other companies are opting for Optimism’s OP Stack, which allows developers to clone its code to build their own layer-2 networks.

Nick Johnson, co-founder and lead developer at ENS Labs, emphasized the importance of this shift, saying, “Namechain represents ENS’ next evolution, and I’m excited for the huge improvements it will bring in scalability and cost, and the new applications it will enable.” With Namechain, ENS Labs aims to strengthen its ecosystem while paving the way for new functionalities that will benefit ENS users and the broader Ethereum community.

ENS Labs’ launch of Namechain marks an exciting evolution for the Ethereum Name Service, leveraging layer-2 technology to cut costs and enhance scalability. As ENS Labs and other major crypto platforms adopt layer-2 solutions, Namechain is set to bring unprecedented efficiency and growth opportunities to the Ethereum ecosystem. With this move, ENS Labs is redefining the possibilities for blockchain-based naming systems, making crypto interactions smoother and more accessible for all.