ENS Labs Introduces ‘Namechain’ Ethereum Layer 2 Solution for Enhancing Blockchain Identity Scalability

ENS Labs, the entity responsible for the Ethereum Name Service (ENS), has launched “Namechain,” a new Ethereum layer 2 solution aimed at improving scalability and accessibility for blockchain-based identities.

This announcement was made during the “frENSday” conference in Bangkok on November 11, as stated in a post on X.

Namechain seeks to facilitate the registration and management of ENS domains by utilizing rollup technology, which lowers costs and simplifies processes.

“With ENSv2 and Namechain, it will be considerably easier to register names, update records, and manage decentralized websites,” remarked Greg Skril, Developer Relations Lead at ENS Labs.

ENSv2 and Namechain to Collaborate

ENSv2, the protocol that broadened ENS compatibility with Ethereum layer 2s, will collaborate with Namechain to enhance the user experience.

ENS functions as a blockchain-based alternative to conventional domain name systems like “.com” and “.org,” providing a human-readable format for Ethereum addresses.

An illustrative example is “Vitalik.eth,” the ENS address of Ethereum co-founder Vitalik Buterin, which simplifies access to his Ethereum address on block explorers.

Jeff Lau, a developer at ENS Labs, highlighted that ENS’s distinctive “.eth” domains will remain linked to the Ethereum mainnet while also being supported on other layer 2 solutions.

The choice to develop an in-house Ethereum layer 2 instead of integrating with an existing solution was motivated by the desire for a seamless user experience, Lau explained.

Announced live at #frENSday
Namechain by @ensdomains, a purpose-built Layer 2 solution!
This is the next evolution in ENS and part of the larger ENSv2 direction. By dramatically reducing costs, improving performance, and providing a familiar Ethereum developer experience our… pic.twitter.com/bIwHa22vJL

— ens.eth (@ensdomains) November 11, 2024

The announcement follows several months of development.

ENS Labs previously disclosed in February that it was actively exploring ways to establish its own layer 2 solution.

While ENS Labs suggested a potential collaboration with a significant industry partner for the expansion, specifics of the partnership remain undisclosed.

In recent months, ENS has broadened its functionality, including integrations with payment platforms PayPal and Venmo in September, allowing crypto transfers for over 270 million users in the United States.

Despite the enthusiasm surrounding Namechain, the ENS token briefly experienced a surge but has since dropped below its pre-announcement price, currently trading at $19.22.

Crypto Sector Experiences Rise in Identity Fraud

The cryptocurrency sector was the second most targeted industry for identity fraud in Q2 2024, according to a report by AU10TIX.

Nearly 29% of global identity fraud attempts were directed at crypto-related platforms, presenting significant risks to the sector as criminals exploit the privacy inherent in blockchain transactions.

The increase in fraud is primarily driven by the use of advanced technology, such as impersonation bots and deepfake tools.

These bots, utilizing deepfake technology, can create fake accounts that seem legitimate, deceiving users and platforms alike.

Despite attempts to enhance detection methods, many scams continue to succeed, often resulting in severe financial repercussions.

Prominent individuals like Tesla’s Elon Musk and Apple’s Tim Cook have fallen victim to deepfake scams promoting fraudulent crypto schemes.

This type of fraud has resulted in significant financial losses worldwide.

In June, crypto exchange Bitget reported a 245% rise in deepfake scams, estimating global losses to exceed $25 billion in 2024.

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