10 months ago
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Recommended for L2 to implement ENS
On the 2nd, Vitalik Buterin, co-founder of the crypto asset (virtual currency) Ethereum, emphasized the importance of the governance token of the Ethereum Name Service (ENS).
Buterin believes that L2 projects need to integrate the ENS domain to improve the user experience in decentralized finance (DeFi), posting:
All Ethereum Layer 2 (L2) must run on a trustless, Merkle certificate-based CCIP resolver to allow ENS subdomains to be registered, updated, and read directly on L2. .
ENS tokens are so important that they need to be affordable.
In response to this, ENS rose to 2,100 yen at one point, and as of the time of writing, is currently hovering around 1,740 yen.
What is Layer 2 (L2)?
This refers to the “second layer” blockchain. Writing all transaction history to the main chain increases the load, leading to a decrease in processing speed and a rise in network fees. Therefore, by recording part of the transaction history on an off-chain or side chain, it can be expected to reduce the load on the main chain and improve processing speed.
Virtual currency glossary
connection: Ethereum’s next upgrade “Dencun” will be implemented around the end of February 2024
What is Ethereum Name Service (ENS)?
ENS is a service that allows Ethereum addresses, which were originally long and complex, to be used as virtual currency addresses with simpler strings of characters. It has been likened to DNS (Domain Name System) in Web3, but it corresponds to the user’s Ethereum address rather than the IP address.
ENS is being used on various platforms such as Ethereum, USDC, and Uniswap. According to Dune Analytics, there are currently 2.1 million ENS domains registered.
connection: What is Ethereum Name Service (ENS), which is traded at a high price? A thorough explanation of its past top sales and usage.
CCIP is the abbreviation for Chainlink’s (LINK) Cross-Chain Interoperability Protocol technology. It is a cross-chain interoperability protocol designed to allow applications across different blockchains to link together.
connection: Trade IoT experiment with Chainlink CCIP, Sumitomo Corporation, Vodafone, etc.
Also, a resolver is a function that converts an ENS name into an address. The CCIP resolver that Mr. Buterin mentioned is a resolver that uses CCIP technology. Merkle proof is a type of data structure used when verifying large-scale data.
Fee proposal to make ENS acquisition fairer
Last September, Buterin proposed a system that would impose a fee to maintain ENS domain names in order to make ownership of ENS addresses fairer.
Since ENS complies with the ERC-721 standard for NFTs (non-fungible tokens), it can be resold on NFT markets such as OpenSea. As a result, Buterin said that as of September last year, about 40% of all five-letter domains were for sale.
Since domains are being acquired for resale, Buterin is considering a better way to allocate ENS addresses.
It proposes a 3% annual fee based on the highest bid for a domain name, with the aim of encouraging the acquisition of domain names by organizations that actually use them.
connection:What is the evolution of the virtual currency Ethereum, Mr. Buterin’s ZK-EVM integration proposal and the future of Layer 2?
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