SSV Mainnet's Debut Strengthens Ether Staking Ecosystem, Addressing Centralization Worries
SSV.network is introducing a groundbreaking blockchain solution focused on liquid staking. Its primary goal is to enable applications to provide staking services to users while concurrently bolstering decentralization in the process. This endeavor is especially timely as centralized staking providers currently hold sway over the staking landscape, collectively managing over 70% of the staked ether (ETH) supply.
The launch of the SSV mainnet marks a significant milestone in the implementation of a staking network utilizing Distributed Validator Technology (DVT) Network, as emphasized by the developers. This release serves as a response to concerns revolving around the centralization of staking, a pivotal process in safeguarding the Ethereum blockchain, which presently leans heavily on a select group of major participants.
In the existing landscape, centralized exchanges such as Binance, Coinbase, and Kraken exert control over nearly 18% of the total staked ETH. Concurrently, providers of liquid staking solutions, including Lido, RocketPool, Stader, and Stakewise, collectively account for over 36%, with Lido being the most prominent contributor.
It's important to note that both liquid and exchange-based staking approaches inherently lean towards centralization and custodianship, even if multiple operators may be involved. This concentration of influence has prompted concerns within the broader crypto community.
Alon Muroch, the protocol lead at ssv.network, expressed enthusiasm about the project, stating, "Together with the partners and the community, SSV Network can usher in a new paradigm for Ethereum staking. Our goal is to onboard even more users who would be otherwise wary of trusting single entities, while not wanting to go through the relatively complex process of staking independently."
To counter centralization concerns, SSV has implemented a validator-sharing model. In this framework, an on-chain entity controlling 32 ETH is shared among multiple underlying operators, each responsible for creating blocks. This stands in contrast to current staking providers, which operate as singular entities pooling tokens from their users.
The mainnet launch of SSV will see the deployment of staking decentralized applications (dapps) by more than 10 teams on the network. Initial participants include Stader, Ankr, Stakestar, 01node, Metapool, StakeTogether, XHash, Chainup, Coindelta, and Claystack.