SSV.Network Races to $100M TVL as Ethereum Staking Heats Up

Distributed Validator Technology (DVT), a solution for decentralizing and strengthening Ethereum validators, is starting to see significant adoption. SSV.Network, the best known project working on the technology, has reported some impressive benchmarks. Just two months after launching, it’s attracted $109M of staked ETH and over 2,000 validators.

With the liquid staking sector, which includes other Proof of Stake chains such as Solana and Polygon, growing steadily, DVT is expected to become ubiquitous. Infrastructure providers, such as liquid staking protocols, like it because it allows a wider validator set to be used without introducing material security risk. As a result, the underlying network becomes more decentralized and more resilient to attack.

SSV Does DVT

DVT may be another abbreviation for the crypto community to master, but it’s one worth remembering. If growth of DVT-based protocols, led by SSV, continues at its current rate, sometime next year a major chunk of the Ethereums staking ecosystem will be secured with Distributed Validator Technology. The tech was developed with the goal of assigning key management to multiple parties. This might sound like a slender security improvement, but in the case of validators, it yields several key benefits.

As ethereum.org explains, “this makes it very difficult for attackers to gain access to the key, because it is not stored in full on any single machine. It also allows for some nodes to go offline, as the necessary signing can be done by a subset of the machines in each cluster. This reduces single points of failure from the network and makes the whole validator set more robust.”

Liquid Staking Dominates TVL

Liquid staking is the largest DeFi sector by total value locked (TVL) and Lido is the largest dapp or protocol within that category. Lido is currently in the process of implementing DVT itself, using a version developed by SSV.Network. Because SSV’s protocol is open source, anyone can build on it, which is something the project is actively encouraging at present.

The next phase in SSV.Network’s evolution will include disbursing grants for building applications that utilize its technology. It’s expected that

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Author: CryptoDaily

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