ENS, or Ethereum Naming Service, is a technology that allows you to use custom names or even web domains instead of wallet addresses. This function is operational within the main cryptocurrency network, but, recently, it has been announced that the first steps are being taken to start operating in layer 2 applications, specifically with Optimistic rollups.
The announcement of these first steps of the implementation was made days ago through the official ENS Twitter. In the thread of the statement, the improvement developed by the programmer Nick Johnson, founder and leader of the ENS project, was announced. This first stage is already in place as a minimum viable product, in which developers can start working for new implementations.
Based on the above, within the ENS blog, where more detail is given about the launch of this proposal, the source code that allows developers to run this implementation was also published, and try it out for yourself.
The proposal, in this first stage, is based on an algorithm that allows layer 2 DApps to communicate with the main network. To do this, a gateway is established, which communicates the smart contracts within the main network and layer 2. In this way, it will be possible to know the data stored in layer 2, translate it, and return the domain name of the corresponding address.
The advantage of this ENS network architecture model is that it would not require any kind of algorithm change either within the core network or at Layer 2.
The Optimistics rollups, used by ENS, are not the only rollups or Layer 2 scalability solutions in existence. Other of these implementations are the ZK-rollups or Arbitrum. These and other second-layer solutions have already been put to the test in an investigation led by Kyber Network on the different rollups in the market, as reported by CriptoNoticias at the time. In it, it was highlighted that The Optimistic allows to fully use the EVM or virtual machine of Ethereum, which translates into full compatibility with smart contracts, a fundamental piece for the operation of the ENS.
Finally, within the Twitter thread, the following steps for the final implementation were announced, among which are: generate a generic standard, specifications to use said standard, receive feedback from the community and carry out the specifications to production for the final of year.
What does ENS mean on Ethereum layer 2
ENS is a service that allows users to put names in place of wallet addresses. Of course, the operation does not stay stagnant there, since it also allows information such as web page domains to be stored, thus turning ENS services into a decentralized counterpart of DNS.
In this regard, and with the growth of Ethereum layer 2, as a solution to the scalability problem. It becomes a very good opportunity for developers to have features that live within the main Ethereum network, directly over layer 2 natively. This allows DApps, both the main network and the second layer, to interact using ENS without changes in their algorithms.
Scalability in Ethereum rollups
The rollups, in short, have been presented as a real solution to the problems of congestion and scalability that the Ethereum network currently suffers. For example, projects like the exchange DeFi dYdX have implemented ZK-rollups for your cryptocurrency perpetual contract exchanges market, thus reducing operating expenses produced by high commissions together with an exponential decrease in waiting times.