Name Chain: The Next Big Project From Ethereum Name Service Creators
ENS Labs, the company that launched the Ethereum Name Service (ENS) in 2017, is gearing up for their next big project. By the end of 2025, they plan to launch a layer-2 blockchain network called Namechain, built on the Ethereum blockchain. Namechain will use zero-knowledge rollup technology to improve transaction efficiency, reducing both costs and processing times. In the ENS domain ecosystem, simpler names like ‘xyz.eth’ tend to have more value than complex names like ‘asd1as.eth’.
According to one reportthe launch of Namechain is aimed at streamlining blockchain identities, making them simpler and easier to use. Not only will this layer 2 blockchain simplify the process for ENS registrations, but the network is also expected to make the service more accessible to users.
This week, ENS Labs made an official announcement about Namechain. In a post on
Announced live on #frENSday:microphone:
Name chain by @ensdomeinen a purpose-built Layer 2 solution!
This is the next evolution in ENS and part of the larger ENSv2 direction. By dramatically reducing costs, improving performance, and providing a trusted Ethereum developer experience, our… pic.twitter.com/bIwHa22vJL
— ens.eth (@ensdomains) November 11, 2024
ENS Labs has allocated an initial budget of $4 million (approximately Rs. 33 crore) USDC stablecoin to support the development of Namechain, with funding provided by the ENS DAO, which oversees the ENS protocol. However, the full budget required for testing and deploying this Layer-2 network has not yet been disclosed.
ENS Labs’ latest initiative follows the rising popularity of its Ethereum Name Service (ENS). ENS is a decentralized domain name protocol that simplifies and converts complex Ethereum wallet addresses into easy-to-read names such as ‘ABC.eth’, making crypto transactions more accessible and user-friendly.
In July 2022, ENS tracker Dune Analytics reported that daily ENS registrations had increased significantly, reaching more than 50,000 new addresses that month. The same year, Nike’s Web3 arm called ‘RTFKT’ acquired ten ENS domains.
Notably, ENS domain registrations registered a 22.9 percent decline in September this year, according to a report by CoinMarketCap. The report also notes that ENS is a critical part of the Web3 ecosystem, with the total number of active domains now exceeding 1.9 million.
In October, Google completed the integration of ENS into its search engine. This development is intended to make it easier for people to search for any name based on the ENS domain, denoted ‘.eth’.
