LayerZero launches name service Clusters, competes with Ethereum Name Service
- LayerZero’s V2 collaborated with Delegate to power a blockchain-based multi-chain naming protocol.
- The protocol competes with the Ethereum Name Service that maps complex blockchain addresses to human-readable names.
- The two projects are focused on a unified identity layer for users that is maintained across multiple blockchains.
Layer Zero, an interoperability protocol that connects over 50 blockchains and helps build cross-chain applications, is powering a naming protocol Clusters, in collaboration with Delegate. This is similar to the Ethereum Name Service (ENS) and addresses users’ challenge of maintaining separate identities across multiple chains in a native manner.
Clusters will help users maintain a unified identity while interacting with dApps and services in the Web3 ecosystem.
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Clusters competes with Ethereum Name Service
The Ethereum Name Service has dominated the blockchain name services space since its inception. ENS is set to face competition as Delegate and Layer Zero collaborate to create a cross-chain, multi-wallet protocol, Clusters. The name service protocol tackles the challenges of a fragmented identity and addresses across multiple chains in the Web3 ecosystem.
Clusters is a multiwallet protocol.
— Clusters (@clustersxyz) February 1, 2024
All your addresses under one name.
EVM, Solana, even Bitcoin.
The creation flow will autopopulate any wallets you’ve delegated to. Get an optional headstart by filling in linked addresses at https://t.co/7TUyy3hMgw
See you at 10am ET tmrw pic.twitter.com/DdPUhXV27o
This development matters to market participants since what Clusters does is similar to ENS, but Clusters is multi-chain and will perform the same action in a native matter. Clusters will ensure that user’s actions across blockchains are associated with their identity and in its backend, the protocol will use Layer Zero as a messaging layer.
The ENS uses Chainlink oracles and data stored on the Ethereum chain is considered as a single point of truth. However, Clusters diversifies this by using Layer Zero and cross-chain messaging to maintain accuracy across millions of names and billions of wallet addresses in the ecosystem.
Layer Zero presented a deep dive into its V2, here, the project cites Clusters as an example of its application. Delegate, Layer Zero’s collaborator, has experience securing $993 million of assets across 182,500 wallets, according to The Blocks Research. It remains to be seen whether Clusters gains relevance among market participants looking for a unified Web3 identity.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
