Ethereum
Ethereum Name Service Offers ENSv2 Upgrade to Harness Growing Layer 2 Networks
ENS Labs, a non-profit organization responsible for Ethereum Name Service (ENS), proposed an ENSv2 upgrade that would make it easier to migrate the protocol to a Layer 2 network, according to a May 28 statement shared with CryptoSlate.
ENS decision is exciting for Ethereum layer 2 networks, which have recently seen increased adoption, and the total value of assets locked on them is reaching a new all-time high.
ENSv2
According to the ENS, the ENSv2 proposal aims to overhaul the protocol with a hierarchical registry to improve the management and personalization of .eth domain names.
This upgrade includes migrating core ENS functions from Ethereum Layer 1 to a Layer 2 network. This change will benefit both users and developers by improving functionality and usability.
As a result, ENS users will benefit from increased scalability, lower gas fees, and faster transaction speeds. Developers will also benefit from more flexibility thanks to the new registry design and other infrastructure improvements. The upgrade is also expected to enable multi-chain interoperability.
However, the protocol failed to name the Layer 2 network it would migrate to. Nevertheless, the ENS elaborated on social networks:
“We have long monitored the state of the L2 ecosystem while also contributing to internal innovations such as CCIP-Read and the EVM Gateway. We think the time has come for us to start moving parts of the ENS, such as the .eth name registration, to the L2.
Layer 2 networks are growing
According to L2Beat datathe total value of locked assets Ethereum Layer 2 networks reached a record $47.26 billion, an increase of 15% over the past week.
Arbitrum leads the pack with a total value locked (TVL) of $19.3 billion. OP Mainnet follows closely with $7.88 billion in TVL, while Coinbase-backed Base ranks third with $6.94 billion. Other blockchains with TVLs exceeding $1 billion include Blast, Mantle, Linea, and Starknet.
Experts attribute this step to renewal investor confidence in the Ethereum ecosystem and the high adoption rates of these networks. Additionally, recent increases in the price of ETH, fueled by the approval of the ETH ETF, have also contributed to the rise in TVL.