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Ruholamin Haqshanas
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Ruholamin Haqshanas
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ENS Labs, the organization behind the Ethereum Name Service (ENS), has introduced “Namechain,” a new Ethereum layer 2 solution designed to enhance scalability and accessibility for blockchain-based identity.
The announcement was made during the “frENSday” conference in Bangkok on November 11, the project said in a post on X.
Namechain aims to simplify the registration and management of ENS domains by leveraging rollup technology, which reduces costs and streamlines processes.
“With ENSv2 and Namechain, it will be significantly easier to register names, update records, and manage decentralized websites,” said Greg Skril, Developer Relations Lead at ENS Labs.
ENSv2 and Namechain to Work in Tandem
ENSv2, the protocol that expanded ENS compatibility with Ethereum layer 2s, will work in tandem with Namechain to improve the user experience.
ENS serves as a blockchain-based alternative to traditional domain name systems like “.com” and “.org,” offering a human-readable format for Ethereum addresses.
A notable example is “Vitalik.eth,” the ENS address of Ethereum co-founder Vitalik Buterin, which simplifies access to his Ethereum address on block explorers.
Jeff Lau, a developer at ENS Labs, emphasized that ENS’s signature “.eth” domains will remain anchored to the Ethereum mainnet while being supported on other layer 2 solutions.
The decision to build an in-house Ethereum layer 2 rather than integrate with an existing solution was driven by the need for a seamless user experience, Lau explained.
The announcement comes after months of development.
ENS Labs previously revealed in February that it was actively researching ways to create its own layer 2 solution.
Although ENS Labs hinted at collaborating with a major industry partner for the expansion, details of the partnership remain undisclosed.
In recent months, ENS has expanded its functionality, including integrating with payment platforms PayPal and Venmo in September, enabling crypto transfers for over 270 million users in the United States.
Despite the excitement around Namechain, the ENS token briefly surged but has since fallen below its pre-announcement price, currently trading at $19.22.
Crypto Industry Sees Surge in Identity Fraud
The cryptocurrency industry was the second most targeted sector for identity fraud in Q2 2024, according to a report by AU10TIX.
Nearly 29% of global identity fraud attempts targeted crypto-related platforms, posing significant risks to the sector as criminals exploit the privacy inherent in blockchain transactions.
The rise in fraud is largely driven by the use of advanced technology, such as impersonation bots and deepfake tools.
These bots, relying on deepfake technology, are capable of creating fake accounts that appear legitimate, tricking users and platforms alike.
Despite efforts to improve detection methods, many scams continue to succeed, often with devastating financial consequences.
High-profile individuals like Tesla’s Elon Musk and Apple’s Tim Cook have been victims of deepfake scams promoting fraudulent crypto schemes.
This type of fraud has led to substantial financial losses globally.
In June, crypto exchange Bitget reported a 245% increase in deepfake scams, estimating global losses to surpass $25 billion in 2024.
