LayerZero launches name service Clusters, competes with Ethereum Name Service

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. 

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.