The Ethereum Name Service (ENS), a decentralized domain name system built on Ethereum blockchain technology, announced a crucial upgrade during its recent community call. The developers at ENS labs revealed their plans to implement Layer 2 Interoperability for ENS domains.
Layer 2 interoperability is considered a significant advancement for ENS, as it enables seamless integration between Layer 2 solutions and ENS domains. These Layer 2 solutions, such as Arbitrum and Optimism, operate off-chain and handle transactions outside of the main Ethereum blockchain. The primary objective of this upgrade is to enhance scalability and reduce transaction costs on the Ethereum network.
By enabling Layer 2 interoperability, the ENS team aims to enhance accessibility to domain name registrations and transactions for a wider user base. This implementation will involve the utilization of off-chain resolvers, an ENS off-chain registrar contract, and various service providers.
Among the service providers involved in this implementation is cb. id, a project operated by Coinbase, the Lens protocol on the Polygon network, and OptiNames on Optimism, among others. The project’s goal is to simplify and streamline the process of interacting with ENS domains, making it easier for users to register and manage their domain names.
Despite market volatility in the digital asset space last year, the Ethereum Name Service (ENS) experienced remarkable growth. It now boasts over 2.2 million registered domain names, spanning across 700,000 unique addresses, with a total of 2.72 million domains.
In April 2023, ENS introduced a new feature called Fiat on-ramp, enabling users to register domains using traditional fiat currency. This collaboration with MoonPay, a Web3 Fiat payment gateway, allows users to register decentralized .eth domains on ENS using payment options like Apple Pay, Google Pay, debit cards, and credit cards. This addition expands accessibility and convenience for users, making domain registration more inclusive and user-friendly.