ENSv2 Lands on Ethereum Mainnet: Why Layer 1 Trumps Custom L2 Plans

The Ethereum Name Service (ENS) has dropped a significant update: its long-awaited ENSv2 upgrade will launch directly on Ethereum’s Layer 1 mainnet, sidelining its custom Layer 2 solution, Namechain. This pivot signals a bold vote of confidence in Ethereum’s core infrastructure and sparks fresh debate about the role of Layer 2 scaling in a rapidly improving blockchain landscape.

• ENSv2 Launch: Deploying on Ethereum Layer 1, not Namechain.
• Ethereum’s Gains: Scalability upgrades and lower fees shift the balance.
• User Perks: Single-step registration and multi-chain support lead ENSv2.

A Quick Primer on ENS

For those new to the space, Ethereum Name Service (ENS) is a decentralized protocol that acts like an internet phonebook for blockchain, converting cumbersome crypto addresses (think 40-character strings) into simple, memorable names like “yourname.eth.” Launched in 2017, ENS has grown from a niche utility to a cornerstone of Ethereum’s ecosystem, with hundreds of thousands of .eth domains registered by users, dApps, and even major brands. It’s a critical tool for making blockchain interactions human-friendly—imagine sending crypto to a friend without copy-pasting a cryptic hash. However, high gas fees on Ethereum, especially during the 2021 bull run when a single registration could cost hundreds of dollars, pushed ENS to explore scaling solutions like Namechain. This history sets the stage for why their latest decision to stick with Layer 1 is such a big deal. It’s not just a tech choice; it’s a statement about Ethereum’s evolution.

Why Layer 1 Over Namechain?

Originally, ENS developed Namechain as a custom Layer 2 (L2) network to tackle Ethereum’s notorious scaling issues. For the uninitiated, Layer 1 (L1) is the main blockchain—Ethereum itself—where transactions are finalized with maximum security and decentralization. Layer 2s are secondary networks built on top, designed to handle transactions faster and cheaper while still anchoring to L1’s robustness. Namechain aimed to cut costs and boost speed for ENS users, a lifeline when Ethereum’s gas fees were bleeding wallets dry a few years back. So why ditch it now? You can explore more about this shift in focus with details on ENSv2’s launch on Ethereum mainnet.

The answer lies in Ethereum’s recent strides. Core developers have doubled the network’s gas limit from 30 million to 60 million in 2025, with sights set on 200 million next year. Gas limits determine how much computational work fits into each block—think of it as expanding a highway from two lanes to eight. More transactions can pass through without the traffic jam of sky-high fees. Alongside upgrades like Fusaka, average transaction costs have plummeted compared to the astronomical rates of 2021. Registering an ENS name no longer feels like taking out a small loan. These improvements made Layer 1 a viable, secure home for ENSv2, outshining the need for a bespoke L2. There’s no point building a side road when the main highway’s been repaved and turbocharged.

Moreover, sticking to L1 prioritizes Ethereum’s unmatched decentralization and battle-tested security—qualities no L2, no matter how efficient, can fully replicate. The ENS team isn’t scrapping Namechain’s lessons, though. They’ve hinted that insights from its development will shape future L2 interoperability, suggesting a pragmatic balance rather than a full retreat from scaling solutions. It’s a calculated move, rooted in Ethereum’s newfound muscle.

What’s New in ENSv2?

Despite the pivot, the ENS team assures users that the ENSv2 rollout won’t lose its shine. Their focus remains on transforming how we interact with blockchain naming, and the features on deck are genuinely promising. As they’ve stated:

“Users will still benefit from the improved user experience that ENSv2 brings, like single-step registration, purchases with stablecoins from any chain, and a new registry design.” – ENS Team

Let’s break that down. Single-step registration cuts out the tedious multi-step hassle of claiming a .eth domain. No more waiting or jumping through hoops—just pick your name and secure it in one go. Then there’s the ability to buy domains with stablecoins like USDC or USDT from any blockchain, not just Ethereum. This cross-chain stablecoin payment feature boosts accessibility, letting you pay from wherever your assets sit without swapping tokens first. A revamped registry design overhauls the backend for smoother name management, though the technicalities are less sexy for most users.

Perhaps most ambitious is the multi-chain support, extending ENS compatibility to over 60 networks, including Bitcoin, Solana, and Celo. This means your .eth name isn’t just an Ethereum badge—it’s a universal ID for interacting with assets across fragmented blockchain ecosystems. Picture using one identity to send Bitcoin or trade on Solana without juggling separate handles. Public alpha releases of the ENS App and ENS Explorer already hint at this future, offering a polished interface for registration and name oversight. For anyone who’s struggled with blockchain’s clunky UX, these tools feel like a breath of fresh air.

Ethereum’s Scalability Resurgence

The ENSv2 decision doesn’t stand alone—it’s part of a broader resurgence in Ethereum’s Layer 1 capabilities. A few years ago, Ethereum was the poster child for scaling woes. During peak congestion in 2021, simple transactions could cost $50, and complex ones like minting NFTs or registering ENS names often hit triple digits. Layer 2s like Arbitrum and Optimism emerged as saviors, offloading traffic while promising cheaper fees. Namechain was born from that same desperation. But Ethereum’s core developers haven’t been idle. Beyond gas limit hikes, network optimizations and rollup-friendly upgrades have slashed costs dramatically. Today, routine interactions on L1 are often competitive with L2s, especially outside bull market frenzies.

This shift challenges the narrative that Layer 2s are the inevitable future. While they still excel for high-frequency use cases—think DeFi trading on Arbitrum—Ethereum’s mainnet is proving it can handle more than skeptics expected. For projects like ENS, where security and decentralization outweigh raw throughput, L1’s appeal is undeniable. It’s like Ethereum’s mainnet has been hitting the gym, flexing newfound strength while L2s scramble to justify their edge. This isn’t to say L2s are obsolete; they fill niches for specific dApps and users. But the pendulum swinging back to Layer 1 is a reminder of why core infrastructure matters in the fight for a decentralized financial system.

Challenges Ahead

Before we get too starry-eyed about ENSv2 or Ethereum’s comeback, let’s ground ourselves in reality. Yes, gas fees are down, but they’re not pocket change during peak network demand. A sudden surge in usage—say, another NFT mania—could still spike costs, leaving casual users grumbling. Sticking to Layer 1 might be secure, but it’s not a magic bullet for affordability. ENS needs to keep an eye on this, or risk alienating newcomers who balk at double-digit fees for a domain name.

Then there’s the multi-chain ambition. Supporting over 60 networks sounds like a flex, but it’s a Pandora’s box of headaches. Cross-chain integrations often rely on bridges—protocols that move assets between blockchains—and history isn’t kind here. Look at the 2022 Wormhole hack, where $320 million vanished due to a bridge exploit. Expanding ENS’s reach invites similar vulnerabilities, from compatibility bugs to outright attacks. Let’s not pretend this sprawl won’t breed chaos; vigilance, not blind hype, is the name of the game. Users and developers must brace for hiccups as ENS navigates this uncharted territory.

Lastly, while Ethereum’s Layer 1 is stronger, it’s not invincible. Regulatory pressures, energy debates, and centralized points of failure (like over-reliance on certain node operators) still loom. ENS tying itself tighter to L1 inherits these risks. We’re all for decentralization, but no blockchain is a fortress yet—not even Ethereum.

The Bigger Picture for Decentralization

Zooming out, ENS’s return to Layer 1 aligns with a deeper ethos in the blockchain space, one echoed by Ethereum co-founder Vitalik Buterin. His recent focus on privacy and resilience—evidenced by funding Shielded Labs’ Crosslink project for Zcash consensus improvements—underscores a community-wide pivot. Vitalik’s words cut to the core:

“2026 is the year that we take back lost ground in terms of self-sovereignty and trustlessness.” – Vitalik Buterin

This isn’t just about tech upgrades; it’s about building systems that withstand worst-case scenarios, whether that’s government crackdowns or centralized meltdowns like exchange hacks. ENS choosing Layer 1 over a less battle-tested L2 mirrors this mindset—prioritizing Ethereum’s raw decentralization over conveniences that might compromise security. It’s a nod to the principles that birthed crypto in the first place.

As Bitcoin maximalists, we can’t help but smirk at Ethereum’s hustle to keep pace with these ideals. Bitcoin remains the gold standard of simplicity and security, laser-focused on being digital gold. ENSv2’s sprawl across 60 networks plays a riskier, flashier game—potentially revolutionary, but a far cry from Bitcoin’s disciplined mission. Still, we respect the grind. Altcoins and protocols like Solana or Celo carve out niches Bitcoin and Ethereum shouldn’t touch, driving adoption in messy, experimental ways. The fight for a free financial future needs both the purists and the innovators, even if we grit our teeth at some of the chaos.

What’s Next for ENS and Ethereum?

Looking ahead, the ENSv2 rollout on Layer 1 sets a precedent. If Ethereum’s gas limits hit 200 million as planned, costs could drop further, cementing L1 as the go-to for projects valuing security over niche scaling. But congestion remains a wildcard—ENS might still need L2 interoperability as a backup for peak times. Future integrations with existing L2s like Optimism could offer a hybrid path, balancing both worlds without reinventing the wheel.

For Ethereum, this moment is a flex of effective accelerationism—pushing core upgrades at breakneck speed to outrun skeptics. Yet the ecosystem must stay wary of overpromising. Scalability is one battle; privacy, censorship resistance, and regulatory headwinds are others. ENSv2’s success will hinge on delivering its slick features without tripping over multi-chain pitfalls. In a space drowning in scams and empty shilling, their focus on tangible progress—alpha releases, clear user benefits—is a breath of fresh air. We’re watching closely, rooting for disruption while keeping the hype in check.

Key Questions and Takeaways

• Why did ENS abandon Namechain for Ethereum’s Layer 1?
  Ethereum’s scalability boost, with gas limits rising to 60 million and fees dropping, made Layer 1 a more secure and viable choice over a custom Layer 2 solution.
• What user benefits does ENSv2 bring to the table?
  It offers single-step registration for ease, cross-chain stablecoin payments for flexibility, and support for over 60 networks like Bitcoin and Solana for broader reach.
• How does Ethereum’s Layer 1 resurgence impact Layer 2 solutions?
  While L1’s improvements steal the spotlight, L2s like Arbitrum remain relevant for high-frequency niches, suggesting a future of coexistence rather than competition.
• What risks come with ENSv2’s multi-chain expansion?
  Supporting 60+ networks opens doors to bugs, compatibility issues, and security threats like cross-chain bridge hacks, demanding caution over blind enthusiasm.
• How does ENSv2 tie into the broader push for decentralization?
  Choosing Layer 1 aligns with Ethereum’s focus on trustlessness and security, echoing Vitalik Buterin’s vision for self-sovereignty in blockchain design.
• What’s the outlook for ENS and Ethereum’s scalability?
  With gas limits targeting 200 million, Ethereum could get even cheaper, but congestion risks linger, potentially pushing ENS to balance L1 and L2 strategies.