Ethereum co-founder Vitalik Buterin is secondary a new technological change for Layer 2 solutions based on the pioneering smart contract protocol.
Ethereum co-founder Vitalik Buterin is secondary a new technological change for Layer 2 solutions based on the pioneering smart contract protocol.
Promotion of the ENS domain for L2
Layer 2 protocols are gradually reaching maturity as each of the major chains, such as Optimism (OP), Arbitrum (ARB), and Polygon (MATIC), reach big numbers when it comes to ecosystem adoption, product innovation and differentiation.
In a bid to cater to the growing ecosystem of these high-performance blockchains, Vitalik Buterin suggests that these L2s should continue to work on CCIP (trustless, merkle-based) resolvers. This development push will help introduce ENS subdomains that can be recorded, updated, and read directly in L2s.
The Ethereum Name Service (ENS) innovation rose to prominence in 2018 as it seeks to make wallet address identification easier. Instead of the long alphanumeric codes that normally characterize private keys, ENS allows you to replace them with the user’s name with “.eth” as a suffix.
Among the many visions that Vitalik Buterin has for the blockchain, he believes that it is high time that L2s also get their naming service with an unusual incentive boost, to make this naming service more affordable. This integration call, if perfected, will serve as a significant growth driver for Layer 2 protocols to function more effectively and attract new users to their ecosystems.
Leveling the playing field
A growing number of Ethereum Layer-2 protocols are differentiating their solutions in a bid to gain the technological advantage that can help them secure a dominant place in the ecosystem.
If the call to integrate the Ethereum Name Service is met, it will ultimately level the playing field for these protocols in terms of bolstering user experiences and engagements as a whole.
The digital currency ecosystem is greatly evolving, with Ethereum particularly facing competition from market rivals such as Solana (SOL), Cardano (ADA), and Avalanche (AVAX). The call for ENS integration is a move to help the protocol maintain its dominance in the world of smart contracts.