Ethereum’s ENS Identity System Set to Launch Own Layer-2 Blockchain

As a seasoned analyst with over two decades of experience in the tech and blockchain industry, I find the move by ENS Labs to build their own layer-2 blockchain, Namechain, an intriguing development. With my background in understanding the complexities of blockchain scaling solutions, I am particularly impressed by their decision to employ zero-knowledge rollups.

ENS Labs, the entity responsible for Ethereum Name Service, is proceeding with a strategy to introduce their own layer-2 network.

According to Katherine Wu, the COO of ENS Labs, it’s expected that the new network, known as Namechain, will become operational towards the end of next year. This network will leverage zero-knowledge rollups, a cutting-edge scaling technology, which boosts the speed of blockchain transactions and cuts down on their execution cost by condensing the data published on-chain.

Using this technology, Namechain can handle transactions outside the primary Ethereum network, yet it maintains all Ethereum’s robust security features. This operation comes with a significantly lower price tag compared to the main Ethereum network, as stated by ENS Labs in their recent press release.

According to Wu, the upcoming network will take advantage of the infrastructure from an existing zero-knowledge chain that’s compatible with the Ethereum Virtual Machine. The team is currently deciding on the specific zkEVM they will employ, as communicated to CoinDesk via Telegram.

Essentially, ENS functions as the web’s equivalent to domain name services for blockchain. Just like domain names (such as Amazon.com or WhiteHouse.gov) are simpler and more memorable than numerical IP addresses, ENS names are a more user-friendly alternative to complex crypto wallet addresses. For instance, Ethereum co-founder Vitalik Buterin’s ENS name is Vitalik.eth, which sounds smoother than his actual address (0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045).

In May, ENS Labs suggested revamping their project’s registry system by converting it into a Layer 2 solution. At that point, they hadn’t definitively chosen the ZK rollup methodology.

In simpler terms, ENSv2, as mentioned by Wu, will undergo a comprehensive redesign of the ENS system itself and also expand it to operate on a Layer 2 platform.

In simpler terms, Wu stated that ensuring Namechain can work seamlessly with ENSv1 (the Ethereum mainnet’s current system) from its very first day of operation will require significant technical effort. For users, there should be no noticeable change in the user interface or experience when switching to Namechain, except for a reduction in gas fees.

The move by ENS to proceed with ENSv2 is a response to multiple announcements from significant cryptocurrency companies launching their own layer-2 initiatives. For instance, the groups responsible for the decentralized finance project Uniswap, the crypto exchange Kraken, and Sony’s Blockchain Labs have revealed intentions to introduce rollup networks of their own. Unlike these projects that utilize Optimism’s technology, or the OP Stack, which enables developers to duplicate its code to establish their own blockchains using a layer-2 solution other than ZK rollups, ENSv2 seems to be independently developed.

In a recent press release, Nick Johnson, co-founder and head developer at ENS Labs, expressed his enthusiasm for Namechain, ENS’ upcoming evolution. He highlighted that this development will significantly boost scalability and cost efficiency while opening up new avenues of application.