The Ethereum Name Service (ENS) has unveiled a transformative roadmap that signals a pivotal shift in its infrastructure and functionality. In a recent announcement on social platform X, the ENS team revealed plans to migrate its core protocol from the Ethereum mainnet to a Layer 2 (L2) network—a strategic upgrade designed to enhance scalability, reduce transaction costs, and unlock new possibilities for decentralized identity and domain management.
This upcoming evolution, often referred to as ENS v2, is more than just a technical overhaul; it represents a bold step toward mainstream adoption of Web3 technologies by bridging the gap between traditional internet systems and blockchain-based services.
Why Migrate ENS to Layer 2?
At the heart of this upgrade lies a clear objective: improving user experience through lower fees and faster transactions.
Currently, interacting with ENS on the Ethereum mainnet can be costly due to fluctuating gas prices. Registering, renewing, or managing an .eth domain often requires paying high network fees, especially during periods of congestion. By moving to Layer 2, ENS aims to maintain Ethereum’s security while drastically reducing costs—potentially by over 90%.
While the specific L2 solution has not yet been finalized, the decision reflects broader industry trends where scalability solutions like Optimism, Arbitrum, or zkSync are becoming essential for decentralized applications aiming for mass adoption.
This migration will allow users to:
- Renew and manage domains at a fraction of current costs
- Execute faster transactions without compromising decentralization
- Interact with ENS seamlessly across dApps and wallets
👉 Discover how next-gen blockchain platforms are enabling low-cost, high-speed domain services.
Introducing the Hierarchical Registration System in ENS v2
One of the most anticipated features of ENS v2 is the introduction of a hierarchical registration system—a significant architectural improvement that redefines how .eth domains are managed.
Under this new model, each domain holder will have access to a dedicated, on-chain registry where they can:
- Create and manage subdomains (e.g.,
blog.jane.eth,shop.jane.eth) - Assign permissions to others without transferring ownership
- Configure custom resolvers for advanced use cases
Nick Johnson, founder of ENS, emphasized the importance of this upgrade:
"ENS v2 will introduce a hierarchical registration system that gives .eth owners full control over their digital namespace. Users will no longer need to rely on centralized tools to manage subdomains—they’ll do it directly on-chain with complete autonomy."This shift empowers individuals and organizations alike to treat their .eth domain as a personal or corporate Web3 hub—akin to owning a root domain in traditional DNS but with full decentralization and cryptographic ownership.
Bridging Web2 and Web3: ENS Integrates .box Domains via Intercap
In another groundbreaking development, ENS recently partnered with Intercap to bring ICANN-approved .box top-level domains (TLDs) into the ENS ecosystem. This marks the first time a traditional DNS TLD has been natively integrated into a decentralized naming protocol—a milestone in the convergence of Web2 and Web3.
Unlike conventional domains tied to centralized registrars, these .box domains operate on-chain within the ENS app, giving users unprecedented flexibility:
- Use
.boxaddresses for websites and email (just like traditional domains) - Link them to crypto wallets, decentralized websites (IPFS), and social profiles
- Own and manage them without intermediary control
This integration carries profound implications:
✅ Accelerating Mainstream Adoption
Users familiar with traditional internet naming conventions can now transition smoothly into Web3 without learning complex blockchain mechanics. Seeing yourname.box instead of a long wallet address lowers the psychological barrier to entry.
✅ Expanding Functional Utility
With .box, ENS evolves from being just a crypto address resolver to a multi-purpose digital identity platform. It supports both decentralized and legacy web services under one unified namespace.
✅ Strengthening Network Effects
Developers gain access to a hybrid naming system that works across ecosystems. This encourages innovation in identity layers, dApps, and cross-platform authentication tools.
✅ Catalyzing Centralized-Decentralized Convergence
The fusion of ICANN-governed TLDs with blockchain-based management signals a paradigm shift—where user sovereignty meets global naming standards. It's a powerful indicator that the future of digital identity is hybrid.
👉 Explore how decentralized identity systems are reshaping online ownership and trust.
Market Reaction: ENS Token Surges Past $28
Unsurprisingly, these developments triggered strong market sentiment. Following the announcement, the **ENS token price surged past $28**, reaching an intraday high of $28.50—a testament to investor confidence in the project’s long-term vision.
As of writing, ENS trades around $25.94, with a 4.07% gain over the past 24 hours—outperforming much of the broader crypto market. This rally reflects growing recognition of ENS not just as a utility tool, but as a foundational layer for Web3 identity infrastructure.
Analysts suggest that continued upgrades—especially the L2 migration and expanded domain functionality—could position ENS as one of the most widely used decentralized services in the coming years.
Frequently Asked Questions (FAQ)
What is ENS?
ENS (Ethereum Name Service) is a decentralized system that translates complex cryptocurrency addresses into human-readable names like alice.eth. It also enables users to build decentralized identities and websites using blockchain-based domain names.
Why is ENS moving to Layer 2?
To reduce high transaction fees and slow processing times associated with the Ethereum mainnet. Layer 2 solutions offer near-instant transactions at a fraction of the cost while maintaining Ethereum-level security.
Will my existing .eth domain still work after the upgrade?
Yes. All current .eth domains will remain fully functional and automatically compatible with ENS v2 features, including subdomain management and L2 interactions.
Can I use .box domains today?
Yes. Through the Intercap partnership, .box domains are now available for registration and management directly within the ENS app—fully integrated with blockchain functionality.
How does ENS differ from traditional DNS?
Traditional DNS is controlled by centralized authorities (like GoDaddy or ICANN). ENS is decentralized—users own their domains outright via smart contracts, with no risk of arbitrary censorship or seizure.
Is the ENS token migration related to the protocol upgrade?
No direct link has been confirmed. The token operates independently of domain functionality, though increased usage and adoption driven by v2 may positively impact token value over time.
The Road Ahead for Decentralized Identity
ENS is no longer just about simplifying wallet addresses—it's evolving into a comprehensive digital identity layer for the open internet. With Layer 2 scalability on the horizon, hierarchical domain controls in development, and real-world DNS integrations like .box, ENS is uniquely positioned to become the backbone of user-centric online identity.
As Web3 matures, the ability to own and control one’s digital presence—free from corporate gatekeepers—will become increasingly valuable. Projects like ENS are leading that charge, proving that decentralization can coexist with usability, familiarity, and global standards.
Whether you're a developer building on decentralized infrastructure or an individual seeking greater control over your online identity, now is the time to explore what ENS—and the broader Web3 ecosystem—can offer.