The Ethereum Name Service (ENS) has announced a major update called ENSv2, which aims to reduce gas fees and improve transaction speeds by migrating to a layer-2 network. ENS Labs, the organization behind the blockchain naming protocol, officially proposed ENSv2 on May 28, with the goal of introducing new features and enhancing the core functionality of ENS through the transition to a layer-2 network.
Founder and lead developer of ENS Labs, Nick Johnson, explained that ENSv2 will bring a new registry system for managing .eth domain names. This update will also allow name holders to customize the governance of their names, including setting expiration and transfer rules.
Additionally, the proposal aims to move the protocol from the Ethereum mainnet to a layer-2 network in order to improve scalability, reduce gas fees, and enhance transaction speed. ENS Labs stated that this approach will benefit both users and developers.
The ENS team highlighted that if the protocol does not migrate, users will miss out on the advantages of lower gas fees and faster speed for .eth name registration renewal and management. They also noted that layer-2 fees are often 100 times cheaper than those on the Ethereum mainnet, which will contribute to an overall better user experience.
Eskender Abebe, ENS Labs’ head of product and strategy, emphasized that these changes are necessary to keep up with advancements in the broader Web3 space. He stated that ENS aims to deliver a product that offers the best possible user experience as Web3 continues to revolutionize.
In addition, the ENS team cited network congestion on the Ethereum mainnet as a major challenge, as it impacts user transactions. They believe that ensuring easy access to .eth names for global users and providing an optimal experience may be difficult to achieve with the current situation on the Ethereum mainnet.