The Ethereum Name Service (ENS), a cornerstone of decentralized identity on the blockchain, is taking a bold leap forward with the planned launch of its own purpose-built Layer 2 network—Namechain—in 2025. Developed by ENS Labs, this next-generation infrastructure aims to scale blockchain identity systems while preserving the decentralization and security users expect from ENS.
This upgrade is part of a broader evolution known as ENSv2, designed to address growing demand for affordable, high-performance domain and identity services on Ethereum. With rising gas fees and network congestion on the Ethereum mainnet, Namechain represents a strategic move to future-proof ENS and empower developers, users, and decentralized applications (dApps) with a seamless identity layer.
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Introducing Namechain: A Purpose-Built Layer 2 for Identity
Namechain is not just another generic scaling solution—it’s a specialized Layer 2 network tailored specifically for managing decentralized identities and domain names. Built using ZK Rollup technology, Namechain will process transactions off the Ethereum mainnet while still inheriting its robust security model. This approach enables faster, cheaper operations without compromising trust or decentralization.
By leveraging zero-knowledge proofs, Namechain ensures that all off-chain computations are verifiable on Ethereum, maintaining cryptographic integrity. The result? Drastically reduced gas costs—potentially a fraction of current ENS registration and renewal fees—along with improved transaction throughput and user experience.
Katherine Wu, COO of ENS Labs, confirmed in an interview with CoinDesk that the team is finalizing its choice of zkEVM (zero-knowledge Ethereum Virtual Machine) to power Namechain. This decision ensures full compatibility with existing Ethereum tooling, allowing developers to build and interact with ENS-based identities using familiar frameworks and workflows.
"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, we hope to unlock new opportunities for ENS and Ethereum to thrive," stated ENS Labs in a post on X (formerly Twitter).
Seamless Transition: Backward Compatibility with ENSv1
One of the most critical aspects of Namechain’s design is backward compatibility with the current ENS system (ENSv1), which operates directly on the Ethereum mainnet. According to Wu, users should experience no noticeable changes when Namechain launches—except for significantly lower gas fees.
Existing ENS domains (e.g., yourname.eth) will continue to function as they do today. Users will be able to manage their domains, update records, and transfer ownership seamlessly across both layers. The frontend interfaces—such as apps like app.ens.domains—will abstract away the complexity, ensuring a smooth transition for non-technical users.
The underlying shift, however, is profound: instead of every domain update requiring an expensive mainnet transaction, these actions can occur efficiently on Namechain, with periodic proofs submitted back to Ethereum for final settlement.
This hybrid architecture balances scalability and security, aligning perfectly with Ethereum’s long-term vision of a multi-layered ecosystem where specialized rollups handle specific use cases.
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Why Identity Needs Its Own Layer 2
Decentralized identity is becoming foundational to Web3. From wallet addresses and social profiles to NFT ownership and reputation scores, ENS has evolved beyond simple domain resolution into a global identity protocol.
But as adoption grows—over 3.8 million unique ENS names registered as of 2024—the limitations of operating entirely on Layer 1 become apparent:
- High gas fees discourage frequent updates.
- Network congestion delays transactions.
- Limited throughput hinders mass adoption.
Namechain solves these issues by creating a dedicated environment optimized for identity management. Unlike general-purpose rollups, it can prioritize features like:
- Batch processing of domain renewals
- Efficient subdomain delegation
- Low-cost metadata updates
- Enhanced privacy controls via ZK proofs
For developers building dApps that rely on human-readable identities, Namechain offers predictable costs and reliable performance—key factors for user retention and engagement.
The Road to ENSv2: More Than Just Scaling
While Namechain is the headline feature of ENSv2, the upgrade encompasses deeper architectural improvements:
- Modular smart contracts: Allowing easier upgrades and feature additions without disrupting existing domains.
- Improved governance: Enhancing community participation in protocol decisions.
- Extensible metadata standards: Supporting richer identity data like avatars, social links, and verifiable credentials.
Together, these changes position ENS not just as a naming service, but as a self-sovereign identity platform for the decentralized internet.
As Wu emphasized, “The major technical work here is ensuring Namechain is backward compatible from day one.” This focus on continuity reflects ENS Labs’ commitment to user-centric design and long-term sustainability.
Frequently Asked Questions (FAQ)
What is Namechain?
Namechain is a Layer 2 network built specifically for the Ethereum Name Service (ENS). It uses ZK Rollup technology to reduce transaction costs and improve performance while maintaining Ethereum-level security.
When will Namechain launch?
According to ENS Labs, Namechain is expected to go live around the end of 2025. No official date has been confirmed yet.
Will I need to migrate my existing .eth domain?
No migration will be required. Existing ENS domains on the Ethereum mainnet (ENSv1) will remain fully functional and compatible with Namechain.
How will Namechain affect gas fees?
Users can expect significantly lower gas fees when interacting with ENS on Namechain, especially for actions like renewing domains or updating records.
Is Namechain a new token or cryptocurrency?
There has been no announcement regarding a new token. ENS Labs has not indicated plans for token issuance related to Namechain at this time.
Can developers build on Namechain now?
Development tools and testnets are expected to be released closer to launch. Developers should monitor official ENS channels for updates.