Staking on Ethereum is unique compared to other staking blockchains; in order to participate, a staker must run a validator by depositing 32 ETH and being online at all times to execute network duties.
Time spent offline is penalized, and actions not in the best interest of the network are penalized by a large reduction of ETH and removal from the network (slashing).
In order to optimize staking on Ethereum, both validator liveness and security are paramount.
SSV Technology Overview
SSV enables validators to run portions (KeyShares) of a validator key across a distributed, trustless network.
No node on the network needs to trust the other to operate, and a certain number of faulty nodes (up to the threshold) can be tolerated without affecting validator performance.
In addition, no node can recreate a validator key signature on its own or make unilateral decisions; paving the way for trustless networks distributed across multiple people or staking services.
Trustlessly splitting a validator key across different systems, SSV presents an Ethereum staking infrastructure solution that reduces the reliance on any single point of failure that might affect validator performance and safety, while simultaneously increasing network security by focusing on decentralization across the entire Ethereum protocol. Read more about SSV-->
SSV.network – Distributed Staking Network
SSV promotes decentralization, security, and liveness across the Ethereum consensus layer and forms the foundation of SSV.network – a fully decentralized and robust ETH staking network.
Using the network will be open and simple for anyone who wants to run an Ethereum validator; from DIY users all the way to staking pools and big institutional staking services.
This applies to using the network both as a user or a service provider; regardless of staking configuration, as long as duties are properly executed, anyone is eligible to provide service and reap rewards for doing so.
Additionally, different services can be built on top of SSV.network by using it as staking infrastructure.
Imagine a staking pool whose operators leverage SSV – enabling the true decentralization of pools from both the operational perspective as well as the withdrawal perspective,
which has been the limiting factor for decentralized staking pools to date.
This type of horizontal scaling is also complemented by vertical scaling, individual stakers choosing multiple SSV operators to run validators. Thereby protecting their validator from staking risks and promoting decentralization across the network.
Participants
The network is comprised of 3 main actors:
- SSV Operators – Infrastructure providers that will manage KeyShares of validators on behalf of users (stakers) and collect fees for their service.
- Stakers (/validators) – Services or individual ETH holders that wish to leverage SSV for the liveness and security of their validator.
- DAO – The backbone of network decision-making.
DAO Governance
The decision-making component of the SSV.network will be handled by a DAO of SSV token holders. The DAO’s areas of responsibilities will include:
- Operator Scoring – On a scale of 0-100. The score is crucial for users to decide which operators to use. In addition, DAO governance decisions can remove an operator from the network.
- Fee – The fee amount is controlled by the DAO and can be changed by a governance decision.
- Treasury – Grant distribution to different initiatives for and by the community. Other decisions for accumulated fees and investment inflows.
- Other decisions – Key protocol decisions such as roadmap and protocol improvements.
Conclusion
SSV.network will be open to anyone who wishes to run a distributed validator, safeguard and optimize the performance of that validator while promoting decentralization across the network. The underrepresentation of non-custodial staking services on the Beacon Chain mixed with a historical lack of validator client diversity makes clear the need for such a system. The Ethereum consensus layer is not immune to central forces, and the SSV.network intends to change that by making decentralization of staking accessible to all.
To read more visit: ssv.network
White Paper [/list]