TL;DR
After switching to a Proof of Stake model, Ethereum added yet another profitable use case to its network. As Ethereum continues rolling out updates like Shanghai and Capella (Shapella), more companies are throwing their name into the staking-as-a-service hat every month. As SSV Network gets ready to launch its Mainnet services, it’s time to learn about the SSV Network and how they’re securing the ETH staking cycle with Distributed Validator Technology (DVT), formally known as Secret Shared Validators (SSV). If you need a recap on why Ethereum staking services are already a big deal, check out our Ethereum Staking Ecosystem Guide. With everyone’s expectations high for the future of the Ethereum network, a sustainable staking system is an absolute requirement.
To maintain the health of the network, consolidation of Ethereum in a few select protocols is a hot topic for the entire industry. With more than half of all ETH currently staked being locked up in services like Lido, Coinbase, Kraken, and Binance. Relying on just one place to put your ETH is not an option. At least not if you want Ethereum to be successful.
This is why SSV’s Secret Shared Validator technology is such an important addition to staking-as-a-service (SaaS). Keep in mind that not many people have the thirty-two ETH required to earn rewards from the network directly. This means that trusting a third party to combine your ETH with others in a staking pool is an important responsibility. Currently, there are over 60,000 depositors on Lido, but only 21 nodes are in control of staking over 33% of all Ethereum.
To combat this centralization problem, the SSV Network takes the novel approach of removing themselves from being responsible for your ETH. Putting control of your assets back into your hands. Renamed to Distributed Validator Technology (DVT) and designed in collaboration with the Ethereum Foundation. Getting ready to launch its mainnet any day now, this community-driven project has been in development for two years and is expected to revolutionize the Ethereum SaaS industry.
What is SSV Network?
Taking a crack at the Ethereum decentralized staking infrastructure is not SSV Network’s first attempt at creating a valuable SaaS protocol for the industry. Starting in 2017 as CoinDash, the project was designed to be an operating system for storing crypto assets. Divided into staking, social, and marketplace services. CoinDash attempted to create a fully automated ICO process for developers and participants. After exploring SaaS technology further the project was rebranded to Blox in 2021 and released its CDT token shortly afterwards. Fast forward to today and Blox is known as SSV Network. Blox launched the SSV Network with the help of its community and an incentivized testnet that rewarded participants with SSV tokens. With it came a new framework designed specifically for staking on the Ethereum network.
SSV Network wants to unlock the full potential of Ethereum’s interconnectivity with everything around it. With an endless amount of Layer2 networks stemming from Ethereum, all roads inevitably lead right back to ETH. This is why SSV Network has focused all of its efforts on supporting Ethereum as a whole instead of BNB, Cosmos, Polkadot, Solana, and many other…
Jesse is a passionate seeker of truth who enjoys educating others about Bitcoin.
As a free thinker and 2nd amendment advocate, Jesse believes each individual has the right to monetary freedom.
“The swarm is headed towards us” -Satoshi Nakamoto
