ENS Labs, the organization behind the Ethereum Name Service (ENS), has announced the launch of “Namechain,” an innovative Ethereum Layer 2 solution aimed at improving the scalability and accessibility of blockchain-based identity services.
The announcement was made at the “frENSday” conference in Bangkok, the organization shared in a post on X (formerly Twitter).
ENS Labs Launches Namechain to Streamline Domain Registration
Namechain leverages roll-up technology, which aggregates transactions to reduce costs and accelerate the registration and management of ENS domains.
“With ENSv2 and Namechain, it will be significantly easier to register names, update records, and manage decentralized websites,” said Greg Skril, Developer Relations Lead at ENS Labs.
ENS’s Namechain marks an essential step toward simplifying blockchain-based identity, making it more accessible and affordable for users.
ENSv2 and Namechain: A Coordinated Approach to Enhanced User Experience
ENSv2, which extends ENS’s compatibility across Ethereum Layer 2 solutions, will operate alongside Namechain to provide an improved user experience.
ENS is a blockchain-based alternative to traditional domain name systems (DNS) such as “.com” and “.org,” allowing Ethereum addresses to be more user-friendly.
An example is “Vitalik.eth,” the address for Ethereum co-founder Vitalik Buterin, which simplifies blockchain navigation and reduces error risk.
Jeff Lau, a developer at ENS Labs, clarified that while ENS’s “.eth” domains will continue to be anchored to the Ethereum mainnet, they will also be supported on various Layer 2 solutions for greater accessibility.
According to Lau, ENS Labs’ decision to create its own Layer 2 solution rather than adopting an existing one was driven by the need for an optimal user experience.
Growing Utility and Partnerships Fuel ENS Expansion
ENS Labs previously disclosed its plans to develop its own Layer 2 solution in early 2024, and the release of Namechain follows months of development.
Although ENS Labs hinted at a partnership with a major industry player, further details remain undisclosed.
ENS Labs has been expanding the utility of ENS domains in recent months, including integration with payment platforms like PayPal and Venmo, making it easier for over 270 million U.S. users to manage crypto transactions through ENS domains.
Despite the excitement around Namechain, the ENS token saw only a brief increase before returning to a pre-announcement price of $19.22.
Identity Fraud Threatens Crypto Sector Amid Rising Adoption
The surge in blockchain-based identity systems comes as the cryptocurrency industry faces rising identity fraud.
A report by AU10TIX revealed that crypto was the second-most-targeted industry for identity fraud in Q2 2024, with nearly 29% of fraud attempts focusing on crypto-related platforms.
Fraudsters increasingly exploit advanced tools, including impersonation bots and deepfake technology, to deceive users.
Notably, high-profile figures like Tesla’s Elon Musk and Apple’s Tim Cook have fallen victim to crypto-related deepfake scams.
According to crypto exchange Bitget, deepfake scams have surged 245% this year, with estimated losses expected to surpass $25 billion globally in 2024.
