Ethereum’s Ethereum Name Service (ENS) is stepping into a new era of scalability and user experience with plans to launch its own dedicated layer-2 blockchain—dubbed Namechain. This strategic move marks a pivotal evolution for one of the most widely adopted identity systems in the decentralized web, aiming to solve persistent issues around transaction speed and gas costs while preserving Ethereum’s robust security model.
What Is Namechain?
Namechain is the upcoming layer-2 network being developed by ENS Labs, the team behind the Ethereum Name Service. Designed as a zero-knowledge rollup (zk-rollup), Namechain will process transactions off the Ethereum mainnet while still anchoring them securely back to the primary chain. This approach enables faster operations and dramatically reduced fees—key pain points for everyday ENS users managing domain registrations, renewals, and updates.
According to Katherine Wu, Chief Operating Officer at ENS Labs, the network is expected to go live around the end of 2025. While the exact zkEVM (zero-knowledge Ethereum Virtual Machine) partner has not yet been finalized, the team is in the final stages of selection and will leverage an existing, battle-tested infrastructure compatible with Ethereum’s execution environment.
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Why Build a Layer-2 for ENS?
At its core, ENS simplifies interactions on Ethereum by replacing long, complex wallet addresses like 0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045 with human-readable names such as vitalik.eth. This functionality has become foundational across wallets, dApps, NFT marketplaces, and decentralized social networks.
However, as adoption grows, so do challenges:
- High gas fees during peak network congestion
- Slow confirmation times
- Limited throughput for bulk operations
By migrating to a purpose-built L2, ENS can offload these operations efficiently. As stated in an official press release, “This technology allows Namechain to process and execute transactions off of the main Ethereum network while still inheriting the full security of Ethereum, but at a fraction of the cost.”
The upgrade is part of a broader initiative known as ENSv2, which involves a complete re-architecture of the ENS protocol. This isn’t just a performance tweak—it’s a foundational overhaul designed for long-term sustainability and innovation.
Ensuring Seamless User Experience
One of the top priorities for ENS Labs is ensuring backward compatibility from day one. Users should not experience disruption when Namechain launches.
“The heavy technical lift here will be in making sure that Namechain is backward compatible with ENSv1 (the current setup on Ethereum mainnet) from day one of launch,” said Wu. “To a user, there should be no difference on the front end/user experience as we launch Namechain, except for lower gas fees.”
This means existing .eth domain owners won’t need to migrate manually or re-register their names. All current records, ownership data, and configurations will carry over seamlessly.
Moreover, developers integrating ENS into their applications can expect consistent APIs and smart contract interfaces—minimizing integration friction during the transition.
How Zero-Knowledge Rollups Power Namechain
Zero-knowledge rollups are among the most promising Ethereum scaling solutions. They bundle hundreds of transactions off-chain and submit a cryptographic proof (a “zk-proof”) to Ethereum, verifying correctness without revealing underlying data.
For ENS, this offers several advantages:
- Lower costs: Transaction fees could drop by 90% or more compared to mainnet operations.
- Faster processing: Batched operations mean quicker domain registrations and updates.
- Enhanced privacy: While ENS remains transparent by design, zk-rollups reduce on-chain data exposure.
- Ethereum-grade security: Finality and trust are maintained through Ethereum’s consensus layer.
Unlike other major projects such as Uniswap, Kraken, and Sony’s Blockchain Labs—which are building on Optimism’s OP Stack—ENS is betting on zk-rollup technology for its superior efficiency and future-proofing potential.
The Bigger Picture: Identity in Web3
As Web3 matures, digital identity becomes increasingly central. ENS has quietly emerged as a de facto standard for self-sovereign identity across Ethereum and beyond. Beyond wallet addressing, .eth domains are now used for:
- Decentralized websites (hosted via IPFS)
- Social profiles (e.g., on Lens Protocol)
- Email alternatives (via decentralized messaging protocols)
- Credentialing and reputation systems
With Namechain, ENS Labs aims to unlock new use cases that were previously impractical due to cost or latency constraints. Imagine:
- Real-time identity verification in DeFi
- Mass issuance of NFT-based credentials
- Dynamic subdomain allocation for DAOs
These innovations hinge on scalable, low-cost infrastructure—exactly what Namechain promises to deliver.
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Frequently Asked Questions
Q: What is ENS?
A: The Ethereum Name Service (ENS) translates complex cryptocurrency addresses into easy-to-remember names like alice.eth. It functions similarly to DNS on the traditional internet but operates on the Ethereum blockchain.
Q: When will Namechain launch?
A: Namechain is expected to go live around the end of 2025. No exact date has been confirmed yet.
Q: Will I need to migrate my .eth domain?
A: No. The ENS team is prioritizing backward compatibility, meaning all existing domains and records will automatically work on Namechain without user intervention.
Q: Is Namechain replacing Ethereum?
A: No. Namechain is a layer-2 built on top of Ethereum. It enhances performance while relying on Ethereum for security and finality.
Q: Why choose zk-rollups over other L2 technologies?
A: zk-rollups offer stronger data compression and lower long-term operational costs compared to optimistic rollups. They also provide faster withdrawal times to Layer 1, improving overall user experience.
Q: Will gas fees be eliminated?
A: Gas fees won’t disappear entirely, but they are expected to drop significantly—potentially by over 90%—making routine ENS operations far more affordable.
The Road Ahead for ENS
Nick Johnson, co-founder and lead developer at ENS Labs, emphasized the transformative potential of this upgrade: “Namechain represents ENS' next evolution, and I'm excited for the huge improvements it will bring in scalability and cost, and the new applications it will enable.”
As more projects recognize the value of owning their stack—from Uniswap’s self-sovereign L2 to Kraken’s chain—ENS is positioning itself not just as a naming service, but as a critical identity layer for Web3.
With Namechain, ENS isn’t just scaling its system—it’s future-proofing digital identity for the next decade of blockchain innovation.
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