SSV.network hits mainnet to increase decentralization of Ethereum staking pools

Criticisms aimed astatine the perceived centralization of Ethereum (ETH) staking pools whitethorn yet beryllium quelled by an alternate staking infrastructure that aims to amended backstage cardinal information and trim validator down times and slashing penalties.

Speaking exclusively to Cointelegraph, SSV.network laminitis Alon Muroch outlined however the platform's distributed validator exertion (DVT) developed successful concern with the Ethereum Foundation volition assistance decentralize ETH staking pools and validators.

SSV.network launched its nationalist mainnet with much than 10 staking decentralized applications deploying their platforms connected the web connected Sept. 14. DVT is envisaged to decentralized the existent scenery of staking providers, which is presently dominated by a fistful of ETH staking pools that bid a important stock of ETH locked successful the ETH2 staking contract.

Related: SSV launches $50M ecosystem money to enactment ETH staking tech

According Muroch, the exertion is an attack to validator information that spreads retired cardinal absorption and signing responsibilities crossed aggregate parties, reducing azygous points of nonaccomplishment and expanding validator resiliency.

The exertion splits a backstage cardinal utilized to unafraid a validator crossed a clump of computers. This increases information and allows for immoderate nodes of a validator clump to spell offline, which besides reduces azygous points of nonaccomplishment from the web and makes validator sets much robust.

“By splitting keyshares betwixt a divers acceptable of nodes successful a cluster, validators go overmuch much decentralized. Staking pools that usage DVT tin decentralize their ain infrastructure oregon delegate it to SSV.network node operators.”

Data from blockchain analytics steadfast Nansen shows that Lido Finance accounts for 32% of ETH locked successful the Beacon Chain deposit contract. ETH staking pools offered by Coinbase (8%) and Binance (4%) besides bid a important stock of staked ETH.

An overview of the largest ETH staking entities. Source: Nansen ETH2 Deposite Contract.

As SVV noted successful an announcement marking the mainnet launch, centralized exchanges including Coinbase, Binance and Kraken clasp astir 18% of the full staked ETH, portion liquid taking pools similar Lido, RocketPool, Stader and Stakewise relationship for implicit 36% of the full marketplace share.

Liquid staking pools became hugely fashionable successful the build-up to Ethereum’s anticipated Shanghai upgrade successful July 2023. The lawsuit introduced the quality for Ethereum users to retreat staked ETH from the Beacon declaration for the archetypal time.

SSV intends to connection an alternate liquid and centralized staking pools, which it describes arsenic “fundamentally centralized and custodial”. Muroch added that SSV tin importantly summation increase validator backstage cardinal information and maximize rewards done precocious show and a responsibility tolerant setup that stops slashing penalties for offline validators.

SSV.network grabbed headlines in Jan. 2023 as it launched a $50 cardinal ecosystem money to enactment different projects processing utilizing DVT.  The exertion was antecedently highlighted arsenic an important facet of Ethereum's scaling roadmap laid retired by co-founder Vitalik Buterin successful Dec. 2021.

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