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Ethereum-Based Domain Protocol ENS Seeks Own L2, Possibly With ZkSync

May 27, 2024

As an analyst with a background in blockchain technology and experience in evaluating various projects, I believe that Ethereum Name Service (ENS) Labs’ decision to redesign their network into a layer-2 blockchain is a strategic move to address the growing demand for cheaper transaction fees and customization within the Ethereum community. The shift towards layer-2 solutions has become increasingly popular among protocols built on Ethereum, as well as some alternative layer-1 blockchains.

As a crypto investor, I’ve been following the developments at Ethereum Name Service (ENS) Labs closely. Yesterday, they announced some exciting news about potential changes to the ENS protocol. They’re proposing a complete architectural redesign, which could transform the network into a layer-2 blockchain. This means that transactions on ENS could be processed off the main Ethereum blockchain, potentially increasing efficiency and reducing transaction fees. It’s an intriguing proposal that could bring significant benefits to users if implemented successfully.

As a researcher involved in this project, I would describe our upcoming proposal, named “ENSv2,” as bringing significant changes to our registry system. This transformation is essential for our evolution into a layer 2 solution – an auxiliary network that boasts lower transaction fees. These cheaper transactions can then be settled back to the base blockchain, Ethereum.
Khori Whittaker, the Executive Director of ENS Labs, shared with CoinDesk in an interview that their project is strongly considering adopting technology from ZK Stack, a kit developed by Matter Labs for building layer-2 chains. Notably, Matter Labs is also the major developer behind zkSync, another layer 2 solution.
ENS’s latest undertaking aligns with a recent blockchain development: some Ethereum protocols and even alternative primary blockchains are transitioning into layer-2 networks in response to their communities’ demands for reduced fees and personalized features. Notably, earlier this month, Celo concluded an 8-month exploration and selected Optimism’s technology as their preferred solution to facilitate this transformation.
“Whittaker expressed his desire for gas prices to be significantly reduced, if not approaching zero. He is enthusiastic about the prospect of increased usage of ENS names and profiles due to this activity.”

Prioritizing privacy, security

Founded in 2017, ENS (Ethereum Name Service) is a project initiated by two ex-employees of the Ethereum Foundation, Nick Johnson and Alex Van de Sande. Its primary function is to convert complex cryptocurrency addresses, consisting usually of long strings of letters and numbers, into more user-friendly names such as “Alice.eth”. At present, ENS operates as smart contracts on the Ethereum blockchain.

The team explored layer-2 solutions from Arbitrum, Optimism, and zkSync for some duration, ultimately selecting Matter Labs’ ZK Stack as their preference according to Whittaker. ZK Stack represents a versatile software development kit allowing creators to establish their own chains utilizing zkSync’s technology. A significant characteristic of the ZK stack lies in its implementation of zero-knowledge proofs, an innovative form of cryptography currently gaining significant traction within the blockchain industry.

Several prominent layer-2 platforms offer customizable solutions, such as Polygon hosting OKX’s “X Layer” and Optimism providing a base for Coinbase’s “Base,” alongside their own offerings and Celo.

During the evaluation process for selecting a stack, privacy and security took priority, according to Whittaker.

“From my perspective, that’s what I’m looking at the various L2 stacks,” Whittaker said.

When the proposal is made public, the ENS Decentralized Autonomous Organization (DAO) will hold a vote to determine if they accept the proposed modifications. This will initiate a phase of back-and-forth communication.

“It may take around two months for the entire procedure to be completed. Once we’ve reached an agreement and receive approval, we’ll be able to start building right away.” – Whittaker.

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2024-05-28 16:15