SSV.network Introduces Alternative Infrastructure to Decentralize Ethereum Staking Pools
Summary:
An alternative staking infrastructure has been developed by SSV.network and the Ethereum Foundation to decentralize Ethereum staking pools and validators. This technology enhances security and resilience by spreading out key management and signing responsibilities across multiple parties. It aims to address concerns about the centralization of ETH staking pools dominated by a few key players.
An alternative staking infrastructure has emerged to address concerns about the centralization of Ethereum (ETH) staking pools. SSV.network, in collaboration with the Ethereum Foundation, has developed distributed validator technology (DVT) to decentralize ETH staking pools and validators. With the recent launch of SSV.network's public mainnet, over 10 staking decentralized applications have already deployed their platforms on the network. By spreading out key management and signing responsibilities across multiple parties, DVT enhances validator security and resilience. This is achieved by splitting a validator's private key across a cluster of computers, reducing single points of failure and increasing robustness. Notably, Lido Finance, Coinbase, and Binance command a significant share of ETH locked in staking contracts, according to data from Nansen. SSV.network aims to offer an alternative to centralized and custodial staking pools, providing increased security and rewards optimization. The technology's importance had been emphasized in Ethereum's scaling roadmap by co-founder Vitalik Buterin.
Published At
9/14/2023 4:30:38 PM
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