ENS Labs’ launch of the ‘Namechain’ Layer 2 solution on Ethereum triggered a 10% boost in ENS token value.
Managing decentralized websites, updating records, and registering names will become simpler with Namechain, the new Layer 2 for Ethereum.
ENS Labs announced “Namechain,” an Ethereum Layer-2 solution, which resulted in a more than 10% boost for the Ethereum Name Service (ENS) token.
ENS Labs introduced Namechain at the “frENSday” conference in Bangkok on Nov. 11, describing it as an Ethereum Layer-2 solution designed to scale blockchain identity by using rollups to lower registration costs and simplify the process.
ENS Labs will use Namechain in conjunction with “ENSv2,” which will leverage the protocol that enabled ENS to scale to Ethereum Layer 2 solutions.
“With ENSv2 and Namechain it will be significantly easier to register names, update records, manage decentralized websites and more,” said Greg Skril, ENS Labs developer relations Lead
ENS functions as a blockchain adaptation of top-level domains like “.com” and “.org,” simplifying readability in the Domain Name System by replacing numerical IP addresses.
Among the high-profile users of ENS is Vitalik Buterin, co-founder of Ethereum, who can locate his address in a block explorer using “Vitalik.eth.”
CoinGecko recorded a 10.8% spike in the token’s price, which climbed from $19.46 to $21.56 within 30 minutes of the announcement.
ENS’s gain was short-lived, as its price declined to $19.22, falling below its pre-announcement value. At press time, the token is down by 2% in a 24hrs time frame.
ENS Labs developer Jeff Lau stated that ENS’s “.eth” domain will continue to anchor on the Ethereum mainnet, and ENS functionality will extend to other Ethereum Layer 2s.
ENS Labs decided to build its own Ethereum Layer 2 to deliver a simple, user-friendly experience, rather than depend on another blockchain.
In a February interview ENS Labs mentioned that it was dedicating considerable effort to research the creation of its own Ethereum Layer 2 solution. And in May, they revealed plans to expand to layer two.
While ENS Labs hinted at a partnership with a significant industry player to help with its layer-2 expansion, it did not disclose the partner’s name.
As of September, ENS linked its name service protocol with PayPal and Venmo, facilitating crypto transfers on both platforms.
With the integration, more than 270 million U.S. users will gain access.
