Author: Solidity Academy Source: medium Translation: Shan Oppa, Golden Finance

Distributed Validator Technology (DVT) is reshaping Ethereum’s proof of stake (PoS) framework to solve the challenges of decentralization. DVT enhances security by dividing the responsibilities of validators and employing cryptographic techniques such as Shamir’s secret sharing and threshold signatures. DVT was pioneered by SSV Network and Diva and is committed to cultivating a decentralized staking ecosystem. Lido's collaborative experiments highlight the reliability of DVT.

• Smart Contracts Made Simple (5 book series)

• Smart contract design pattern

• Solidity Developer Interview Guide

• Audit Technology and Tools

• Solidity Blueprint: A 21-Day Journey to Building DApps

Beyond Ethereum, DVT emerges as a revolutionary force that promotes trust, security, and broader participation in the evolving region Blockchain technology field. It is a milestone in the quest for a resilient cryptocurrency ecosystem.

Ethereum’s journey has been nothing short of revolutionary, especially in recent years. The shift from Proof of Work (PoW) to Proof of Stake (PoS) marks a huge shift in how transactions are verified and blocks are added to the network. Driven by the need for energy efficiency and enhanced cybersecurity, this move brings a new set of challenges that require innovative solutions. Distributed Validator Technology (DVT) is a game changer in the Ethereum PoS framework.

The evolution of Ethereum: PoW to PoS 

The purpose of Ethereum is from PoW to PoS Addressing the inefficiencies and environmental issues associated with PoW. PoS selects validators based on cryptocurrency holdings and risk commitment, providing a more energy-efficient and easier-to-use alternative. However, the pursuit of PoS decentralization brings challenges, such as the concentration of wealth and the risk of centralization through staking pools.

The necessity of PoS decentralization⚖️

Decentralization is the key to PoS. Ensure network fairness and security. The risk of a 51% attack, where one entity controls a majority of the computing power, is very prominent in PoW, but is mitigated in PoS. However, challenges remain, with wealthier stakeholders potentially exerting disproportionate influence and staking pools inadvertently centralizing validation power. These challenges require solutions such as DVT to evenly distribute the verification process and enforce the decentralized nature of PoS.

Introducing Distributed Verifier Technology (DVT) 

The emergence of DVT is the solution A groundbreaking solution to the challenges posed by Ethereum’s transition to PoS. Essentially, DVT revolutionizes the way blockchain networks verify transactions, especially in PoS systems. Key goals include enhancing security and promoting decentralization by distributing the responsibilities of a single validator across multiple nodes.

The mechanism of DVT

DVT achieves its goals through a complex interplay of cryptographic techniques. Shamir's secret sharing divides the validator's private key into several parts and distributes them on different nodes. This prevents unauthorized access to the complete key. Threshold signature schemes determine the number of keys required to perform a task, ensuring system functionality even if some nodes are compromised.

Distributed Key Generation (DKG) ensures that each participant receives a portion of the key without full visibility. Multi-party computation (MPC) enables nodes to collaborate on signatures without revealing key parts of them. The fault-tolerant consensus protocol (QBFT) ensures that each node holding a share of the key can agree on operations such as confirming blocks.

SSV Network: Groundbreaking DVT in Ethereum Staking 

SSV Network Exploitation Secrets Shared Validator (SSV), or DVT, introduces a revolutionary method of staking Ethereum. The network’s mainnet was recently unveiled, showcasing DVT’s strength in building a decentralized and open-source staking ecosystem.

SSV Ecosystem Dynamics 

SSV network consists of stakeholders, operators and DAO members. Stakers utilize DVT technology to enhance the security of validators and compensate operators with SSV tokens. Operators play a key role in supporting the SSV protocol and ensuring network robustness. The DAO governs the SSV network protocol and manages its finances, making decisions through governance functions and token holder voting.

$SSV Token: Growth Catalyst

The native token $SSV is the lifeblood of the SSV network . Stakers pay SSV USD to operators, facilitating network participation and governance. The token’s dual role in payments and decision-making makes it a key player in the network’s growth cycle.

Diva: Redefining liquid staking through DVT 

Diva is an Ethereum Liquidity staking protocol uses DVT to enhance Ethereum’s proof-of-stake system. Diva offers novel features for Liquid stakers and operators, introducing dynamic and non-custodial staking methods.

Diva’s unique features

Liquid pledgers can obtain divETH by depositing ETH. It is a multifunctional Liquid staking token that accrues rewards. DivETH’s liquidity coupled with its ERC20 nature allows for seamless trading and participation in the DeFi ecosystem. Operators do not need to handle actual funds and use divETH as collateral to ensure network security.

Lido's Experiments: Collaboration and Practical Applications of DVT 

Lido's Experiments involving DVT The project demonstrates the power of collaboration and experimentation in the blockchain transaction space. Lido partnered with the SSV Network to conduct a comprehensive test involving a variety of participants, from node operators to community stakeholders. The results demonstrate the reliability and potential of DVT in processing Ethereum transactions.

DVT in the broader blockchain context 

DVT’s impact goes beyond Ethereum, represents a paradigm shift in the validator model of blockchain networks. In the PoS mechanism, DVT’s decentralized approach offsets the centralization risks brought by the traditional model. The implications for the broader cryptocurrency ecosystem are profound, promoting trust, security and wider participation.

Conclusion: DVT - a milestone in the evolution of blockchain

Distributed validator technology (DVT) has become the cornerstone of blockchain and cryptocurrency development. Ethereum’s adoption of DVT sets a precedent, demonstrating the potential for enhanced security, efficiency, and decentralization. As blockchain networks continue to develop, DVT paves the way for a future where trust comes first, security is firm, and decentralization becomes the norm. In the ever-evolving world of blockchain technology, DVT serves as a beacon, guiding the way toward a stronger and more resilient cryptocurrency ecosystem.