Ethereum staking is of growing interest to cryptocurrency enthusiasts due to the upcoming launch of ETH 2.0. However, there is also a growing demand for decentralized ETH staking solutions. ssv.network Is one of the providers facilitating that activity, and they raised $10 million to optimize its infrastructure.
ETH 2.0 Staking Is Popular
The concept of Ethereum staking continues to gain momentum in the cryptocurrency space. Although Ethereum’s network upgrade does not support proof-of-stake yet, users can engage in pre-staking to earn rewards once this transition goes live. Becoming a full-fledged ETH 2.0 staker requires locking 32 ETH into a wallet address to serve as a network validator. To date, the staking contract holds over $28.7 billion – or over 9.347 million ETH – confirming this concept is very popular.
However, not all users can stake 32 ETH. Thankfully, there are some solutions for delegated staking, exchange-based staking pools, and using trusted validators to achieve this goal. These options are viable, yet having a decentralized staking model would be preferable. The benefits of decentralizing ETH 2.0 staking include:
- Liquid staking protocols
- Staking pools no longer have to compromise on decentralization to provide a compelling user experience
- More straightforward access to ETH 2.0 staking
To unlock these benefits, developers need to build the necessary infrastructure. ssv.network Serves as an open-source, decentralized protocol simplifying access to decentralized ETH staking. Furthermore, through its Secret-Shared-Validator research, ssv.network becomes the first protocol to help users split a validator key between non-trusting nodes or operators.
Why ssv.network Matters
Trustless access to ETH 2.0 staking is a crucial aspect. This approach ensures robustness and stability while aiding in client diversification and further decentralizing the Ethereum network as a whole. Moreover, the research by ssv.network for its SSV technology – now known as Distributed Validator Technology (DVT) – has become an essential element for the Ethereum Foundation’s roadmap for ETH 2.0.
ssv.network Core Contributor Alon Muroch adds:
“We identified DV technology at a very early stage as a critical component in Ethereum’s transition to Eth 2.0. “It is incredible to see the level of adoption and participation at such an early stage in the network’s life cycle. ETH staking and DeFi will be some of crypto’s core themes in 2022 and both segments will benefit tremendously from decentralizing Ethereum’s security layer, which we call Layer 0. 2021 was the year of L2, 2022 is set to become the year of Layer 0.”
A decentralized approach to Ethereum staking removes the need for relying on trusted validators custodying the private validator key owned by the user. Instead, ssv.network enables staking at the infrastructure level – Ethereum’s Layer 0. Moreover, the project has secured crucial partnerships with Digital Currency Grup, Coinbase, OKEX Ventures, NGC Ventures, Allnodes, RockX, AMBER, Skillz, and many others.
Ongoing SSV Ecosystem Growth And Funding
Furthermore, the SSV ecosystem has grown tremendously over the past few months. Thanks to a DAO Partner Program launched by ssv.network in late 2021, the team has strengthened its community and attracted experienced technical users, industry leaders, and key personalities. The DAO Partner Program is still operational and aims to attract large ETH stakers to join the SSV DAO.
The efforts by ssv.network have attracted attention from blockchain investors and VCs. More specifically, the project secured $10 million in investment after receiving an Ethereum Foundation grant earlier. The growing financial support confirms the need for decentralized ETH 2.0 staking infrastructure and leveling the playing field for all service providers.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.