• Ethereum Name Service (ENS) Labs is introducing Layer 2 (L2) interoperability for its ENS domains.
• The decentralized domain name system is leveraging an ENS off-chain registrar contract and the services of Coinbase cb.id, Lens Protocol, and OptiNames on the Optimism network.
• June witnessed a surge in ENS domain name registrations with total value locked on L2 service providers surging by over 190%.
Ethereum Name Service Introduces Layer 2 Interoperability
Ethereum Name Service Labs has announced plans to introduce Layer 2 (L2) interoperability for its ENS domains during a community call on June 28. This step comes as the L2 ecosystem continues to witness an influx of projects and protocols, with the total value of assets locked on L2 service providers having surged by over 190% in the past year.
Implementation Details
The implementation aims to improve performance, scalability, and cost efficiency for users managing their ENS domains . It will involve off-chain resolvers, leveraging an ENS off-chain registrar contract and the services of Coinbase’ cb.id, Lens Protocol, and OptiNames on the Optimism network .
Q2 2021 Performance
Dune Analytics data shows that monthly ENS domain name registrations totalled 79,463 last quarter with June recording the highest number of registrations during this period with 35,932 registrations. Primary ENS name registrations saw a notable decline though . Furthermore , ENS registered a cumulative profit of $4.8 million between April 1 and June 30 despite a 21% dip in revenue during this period while annualized revenue fell by 5.11%.
Token Price Analysis
The daily price performance chart of ENS showed an increase in token accumulation since mid-June along with corresponding 22% value growth. Technical indicators such as Relative Strength Index (RSI) and Money Flow Index (MFI) were indicating bullish momentum at press time .
Conclusion
The Ethereum Name Service (ENS) plays a crucial role in making Ethereum more user friendly by replacing complex blockchain addresses with easy-to-remember names . With its latest move towards implementing Layer 2 interoperability , it takes a significant stride towards improving operational efficiency as well as cost effectiveness when managing ENS domains . This development arrives amidst growing trend of Layer 2 adoption across blockchain space as more projects look to counter scalability issues associated with Ethereum mainnet .