With the rising popularity of Ethereum over the past few years, gas prices have increased significantly and people have begun looking for alternatives to reduce those costs. For this reason, many projects started using Layer 2 (L2) solutions, which usually have significantly lower gas fees. The Ethereum Name Service (ENS) is one of such projects, and will be adding support for L2 via two new proposals: ENSIP-10: Wildcard Resolution and EIP-3668: CCIP Read: Secure offchain data retrieval.
The problem with using ENS domains right now is the high cost to set up a domain. You have to register it, set a resolver for the domain, and then make the resolver point to your address. Gas costs could be reduced a little bit by using ENS subdomains, like maarten.mycrypto.eth, but then you still need to set a resolver for the subdomain and point it to your address. This could get expensive very quickly.
EIP-3668 and ENSIP-10 solve this problem by making it possible to resolve ENS domains without the Ethereum network.New Proposals, Summarised
EIP-3668 introduces a secure Cross-Chain Interoperability Protocol (CCIP) Read method for clients to fetch data offchain. Note that while "offchain" in this context means "off the Ethereum chain," it could be fetched on another chain. This could be a Layer 2 network, or some other arbitrary way of resolving, depending on how it's implemented.
A simplified diagram of EIP-3668, originally from the EIP-3668 specification.
This works by first performing a call on a contract that returns a gateway URL and some data. The client then sends an HTTP request to the gateway with the specified data, which can fetch the data in any way it wants to. The data returned by the gateway can be verified using the callback function on the onchain contract.
This specification is not specific to ENS however. It can be used to fetch any data offchain in a secure way.
ENSIP-10 (yes, ENSIP) makes it possible to...