ENS Token Rises 10% As ENS Labs Reveals ‘Namechain’ Ethereum L2
The Ethereum Name Service (ENS) token surged over 10% as ENS Labs announced details of its new Ethereum layer-2 solution, “Namechain.”
Namechain is a purpose-built Ethereum layer-2 solution that reduces identity on the blockchain, making it easier to register names at a bundled asking price, ENS Labs executives said in a presentation at the “frENSday” conference in Bangkok on November 11.
Namechain works with “ENSv2” – the protocol that allowed ENS to expand to Ethereum L2s.
“With ENSv2 and Namechain, it will be easier to register names, update records, manage decentralized websites, and more,” said Greg Skrill, ENS Labs developer relations lead.
Source: ENS Labs
ENS is a blockchain solution for the Internet's top-level domains such as “.com” and “.org” in the Domain Name System — the easiest to read numerical IP addresses.
One of ENS's most prominent figures is Ethereum founder Vitalik Buterin, whose Ethereum address can be found in the Ethereum block explorer by typing in “Vitalik.eth”.
The ENS token rose 10.8% from $19.46 to $21.56 in a 30-minute window shortly after the announcement, according to CoinGecko.
However, it was relatively short-lived, with ENS now trading below its pre-announcement price of $19.22.
Jeff Lau, a developer at ENS Labs, noted that the ENS name domain “.eth” will remain an “anchor” on the Ethereum mainnet and that ENS will be supported on other Ethereum layer 2s.
According to Lau, building an easy-to-use UX is one of the main reasons why ENS Labs chose to build its own Ethereum Layer 2 instead of integrating its own solution on another chain.
Related: Decentralized naming could bring ‘next billion' users to Bitcoin
In an interview with Cointelegraph in February, ENS Labs stated that it is “very” focused on exploring ways to build its own Ethereum layer 2.
ENS Labs hinted that it partnered with a major industry player to help with the Layer-2 expansion, but did not specify which entity.
ENS Labs announcement shows on frENSday. Source: Catherine Wu
In September, ENS integrated its name service protocol with payment platforms PayPal and Venmo for crypto transfers.
The combination is expected to reach more than 270 million users in the United States.
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