SSV: The Game Changer for Decentralized Ethereum Staking with Distributed Validator Technology

Modified on Thu, 2 Oct at 6:53 PM

Since Ethereum upgraded to a proof-of-stake (PoS) consensus system, staking has become an essential part of network security. However, despite the Merge's upgrade on 15 September 2022, validator node operators still require a minimum of 32 ETH to participate in the verification process. This creates a barrier for those who want to become validators.

In this article, let's get to know ssv.network (SSV), a decentralized staking infrastructure. SSV allows people to participate by creating validator pools, eliminating the need to run a full validator node themselves.

Get to Know Secret Shared Validator (SSV)

Secret Shared Validator (SSV) is a native token of ssv.network. There are two main use cases:
Payments: Stakers can use SSV to compensate operators for managing their validators.
Governance: SSV holders can participate in decision-making and treasury allocations related to ssv.network.

Tokens play an important role in engaging the community and motivating the right stakeholders to make a significant contribution to the network (ssv.network).

ssv.network is a fully decentralized and open-source ETH staking network. Using Secret Shared Validator (SSV) technology.

SSV is known as DVT or Distributed Validator Technology. It provides services that are open and easily accessible. It allows for splitting and distributing a validator key into multiple KeyShares, for the purpose of running an Ethereum validator across multiple non-trusting nodes.

The work of ssv.network’s validators allows for a active-active redundancy, which increases the security of validator units. It also has other benefits, introducing new levels of validator key security, and benefits the Ethereum network, staking pools, staking services and solo stakers.

Who’s Behind ssv.network?

Alon Muroch is the CEO and co-founder of ssv.network along with Adam Efrima, the founder of Blox.io. The non-custodial ETH staking platform officially launched on 17 September 2021 as Blox (CDT), before changing to ssv.network.

At the beginning, Alon Muroch was just an entrepreneur and developer. He began working for various startups over the past decade. In 2014, he read the white paper of Satoshi Nakamoto, the creator of Bitcoin, which inspired him to explore and get deeply involved in the world of cryptocurrencies. Here, he has been involved in the development of Bitcoin, Ethereum, and the development of multi-signature (Or multisig) P2P wallets. In 2017, he co-founded Blox.io and serves as the company’s CEO.

SSV Platform Highlight

SSV goes beyond a decentralized validator network. It offers increased resilience for validators on the Ethereum network, making staking easily accessible to aspiring operators without significant infrastructure costs. Even if some service providers go offline, system operator rewards continue to accumulate.

The key strengths of SSV can be summarized as follows:
Reduced Barriers to Staking: eliminating the need to meet the minimum 32 ETH staking requirement on the Ethereum network.

Active-Active Redundancy and Fault Tolerance: SSV splits Ethereum validators into multiple KeyShares, enabling independent operation across multiple nodes. This ensures that the system can continue to function even if individual nodes are offline for maintenance or due to technical issues.
Non-Custodial & Secure ETH Staking: SSV allows validators to create and distribute multiple KeyShares, enhancing security by enabling offline storage.
Decentralization & Diversity: (1)Operators have the freedom to choose their preferred software. (2) Validator clients can run their own hardware infrastructure. (3) Staking participants can choose their preferred operator.
The decentralized approach: Increasing overall blockchain efficiency and eliminates single points of failure, mitigating risks for stakers.

Total Supply and Token Distribution

The total number of SSV coins in circulation (Total supply) is 11,012,871. These tokens are divided into two main use cases:

Governance: SSV tokens are used as voting rights within the DAO network (Decentralized Autonomous Organization), allowing holders to participate in decision-making and propose development guidelines.
Payments: SSV tokens are used to compensate operators who manage validators. Operators can set their own fees, fostering competition and allowing stakers to choose the most suitable provider. Stakers can even diversify by selecting multiple operators to manage their validators and maintain their balance.

ssv.network has undergone a token transition since its launch in 2021. Originally launched as CoinDash Token (CDT) and later renamed Blox.io, all CDT tokens were convertible to SSV at a 1:100 ratio. This distribution included:

3,000,000 SSV allocated for DAO Governance: This allocation supports the Decentralized Autonomous Organization (DAO) by providing voting rights and strategic partnerships.
After the upgrade, 13,000,000 SSV were created and distributed in proportion.

SSV Token Distribution Plan

The SSV token distribution plan can be broken down into three parts:

500,000 SSV: Decentralized Autonomous Organization (DAO)
500,000 SSV: This allocation to create an option pool that serves as an incentive program for both past and present Blox members.
2,250,000 SSV: This section is dedicated to a locked staking program. Users who participate in this program will lock their SSV tokens for a predetermined period. After the lockup period ends, users can withdraw their tokens.

Interesting information about SSV

Information from Coinmarketcap (as of 18 June 2024) shows SSV with a market cap of $370,474,723 (Approximately 13,623,059,513 baht).

At the time of writing, SSV is trading at $37.05 (Roughly 1,362.35 baht per SSV). This follows its previous peak of $65.93 (Approximately 2,425.65 baht) on 25 March 2024.

References